France's EPI Ingredients is expanding its supply milk powders with
a new deal with Belgian dairy firm Solarec, which will give it the
rights to commercialise all the powders produced at the latter's
Recongne-Libramont facility.
Standard & Poor's announced today that it has lowered
its credit ratings on French company Danone, based on
the projected increased debt due its proposed acquisition of
Numico.
Growing fears among dairy processors over continued increases in
the cost of ingredients like milk powders could be allayed by new
findings from the Organisation for Economic Co-operation and
Development (OECD).
Dairy group Arla continues to profit from its partnerships within
the emerging markets of Asia as sales of its powdered milk brands
in Bangladesh continue to rise rapidly.
Mergers and acquisition activity is always ongoing in every segment
of industry, but this summer looks to be a particularly hot one for
food and beverage manufacturers.
Raisio is to cease production of margarine at its plant in Istra,
Russia from September, when it will transfer the operation to a
subcontractor in an effort to reduce over-capacity and boost
profitability.
Italian dairy group Parmalat continues its fight back from
insolvency after emerging victorious yesterday from another set of
legal disputes over responsibility for its financial collapse in
2003.
The EU's dairy management committee last week revoked
subsidies on all exported dairy products for the first time in 40
years, as increased demand amongst processors and consumers
continues to drive up prices.
Friesland Foods this week announced plans to scale down
its production facilities in the Netherlands in a bid to brace
itself for wide scale changes within the EU's dairy market.
Sweden's Arla foods has today revealed it plans to enter Vietnam's
dairy market in October to boost its presence in the dynamic
emerging markets of Asia.
Robert Wiseman, one of the UK's largest dairy processors, said
higher selling prices and added value milk helped it to rebuild
operating profit margins in 2006.
Dairy group Arla Foods and packaging firm Constantia Packaging are
looking to sell off their joint venture on the Danish market to
focus on their core businesses.
Danisco has cut a deal to sell its flavours division to Firmenich
that will let it focus resources on its bioingredients, texturants
and sweeteners competencies - while still keeping some interest in
flavours through a partnership...
Decline within Group Danone's Asian operations failed to dampen a
strong first quarter performance for the company as like-for-like
sales underwent a 10.1 per cent rise to €3.6bn.
Two weeks ago world leaders extended the deadline on the
beleaguered Doha trade round to the end of this year. Exhortations
not to let the opportunity pass have ensued, but big barriers must
still be overcome before a positive conclusion...
Public debates over farmgate milk prices will take place across
Britain over the next couple of weeks, as producers and campaign
groups look to maintain pressure on retailers and processors.
The Irish Commercial Court has judged that the Yoplait Essence
brand does not infringe on Danone's Essensis trademark, and that
the French dairy giant's trademark should be revoked, as it is not
a genuine market brand.
Rising commodity prices in the second half of 2006 helped the Irish
Dairy Board to a five per cent sales rise for the year, but
producers warn they are not reaping the benefits.
Food Giant Nestlé has sold off one of its Vietnamese dairy plants
to local group Anco Foods, as it looks to shift focus in the region
to the production of its core brands.
As Tesco again displayed its power in the UK food chain with
another profits rise, dairy group Arla Foods joined a growing list
of processors to raise farmgate milk prices.
Scandinavian dairy giant Arla Foods has agreed to form a joint
venture with its Russian distributor, Artis, as competition for
space on the growing Russian dairy market intensifies.
Nestlé's new milk factory in Pakistan, set to be the world's
largest milk collection centre, can help prevent more people from
turning to Islamic extremism, the country's president has said.
UK food and drink companies face further pressure to reduce their
CO2 outputs next year, with more plants in the sector coming under
the second phase of the EU's Emissions Trading Scheme (ETS).
Irish dairy co-operative, Dairygold, has pledged to fight any court
action brought against it in Wales over the closure of its cheese
packing plant in the country.
Milk producers in the UK have given a cautious welcome to milk
price rises announced by Tesco this week, in the latest development
on dairy farmer incomes.
Glanbia's nutritionals activities were a positive force in 2006,
driving gains in operating profits for its ingredients division and
staving off the impact of another challenging year for dairy.
A little piece of Fairtrade Fortnight touched the UK dairy industry
this week as the head of the Sainsbury's supermarket told farmers
he was willing to pay more for their milk.
Sales at the group rose to CHF98.5 billion (€60.5bn) while organic
growth was 6.2 per cent and net profit was up 13.8 per cent to a
record CHF9.2 billion (€5.6bn).
Friesland Foods is to enter a joint venture with Australian dairy
group Warrnambool as part of plans to help meet growing demand in
the country for prebiotic ingredients.
Danone gave a bullish account of its 2006 performance, citing
strong growth for blockbuster dairy brands and an 'outstanding'
performance in beverage markets.
France's Danone must pay a €42m fine for its role in a cartel in
Belgium, an EU court has ruled, backing Commission plans to get
tough on repeat offenders.
America's dairy industry has ripped into the Bush administration's
'ineffective' spending plans for the sector, warning the proposals
will not help domestic farmers or improve prospects of a world
trade deal.
Parmalat has been awarded €25m from Banca Popolare di Milano as
part of its ongoing fight to recover money from financial
institutions allegedly implicated in the firm's collapse.
French dairy group Danone has bought complete control of its
Japanese joint venture, lured by the promise of riches from rapidly
growing consumer demand for healthy dairy products.
Public pressure on UK supermarkets and dairy firms over farmgate
milk prices grew this week when a consumer group handed a petition
to Parliament, calling for government action.
Danone, the world's leading dairy producer, has announced plans to
work alongside a local counterpart Dutch Mill Co. to distribute and
manufacture a range of fresh dairy products within Thailand.
Milk producers in France have used an industry meeting to call for
higher farmgate prices and again condemn cuts over the last five
years, revealing ongoing tension between farmers and dairy firms in
the EU.
