Mariann Fischer Boel, EU commissioner for agriculture, said Monday
that the commission could consider putting limits on the Single
Payment Scheme if it is found that the scheme is not efficient.
Vietnam's biggest dairy, commonly called Vinamilk, is set for a
change of ownership, after the government revealed plans to reduce
its controlling stake in the company.
Farmgate milk prices have continued to fall across the European
Union and most rapidly in France over the last year, new figures
show, increasing tension between producers and processors.
Rows over farmgate milk prices have intensified in France, with
leading French dairy processor Lactalis accusing its rival Sodiaal
of irresponsibly cutting the price it pays to producers.
Fonterra, the New Zealand dairy co-operative, said it sold more
dairy ingredients this May than in any other month ever, as it
continues to expand on the world dairy market.
Arla Foods has re-started cheese production for the Middle East
dairy market, but warned the move did not represent significant
progress in beating the boycott there.
Swiss dairy group Emmi said it would expand its reach in Italy's
fresh dairy sector by taking over yoghurt maker Trentinalatte,
rounding off another week of consolidation on the European dairy
market.
Arla Foods has bought up speciality cheesemaker Tholstrup in its
native Denmark, as the group looks to expand its cheese export
business amid rising competition.
French dairy group Danone has seen shares rise after rumours again
surfaced that the firm may be taken over by a foreign company, this
time Kraft Foods.
Leading US organic dairy firm Stonyfield Farm and Danone have
joined forces to create a European subsidiary, which the groups
hope will duplicate Stonyfield's US success in Europe's organic
dairy industry.
In the US, the role of court action in defining limits not set by
regulators is generating a flood of costly court cases for the food
industry: much unnecessary, and all damaging.
Nestle doesn't expect raw material prices to rise further this
year, despite a recent FAO report that forecasts an increase of
over 2 per cent in the world food import bill in 2006.
Dairy processor Robert Wiseman has continued on the acquisition
trail by agreeing to buy Milk Link's milk business, suggesting
consolidation is picking up pace on the Uk dairy industry.
International food giants Arla Foods and Danisco got more subsidies
from the EU than anyone else in their native Denmark last year,
says a new report, adding yet more controversy to Europe's farm
support scheme.
Arla UK announced it would make more controversial cuts to farmgate
milk prices and fine producers for churning out too much milk, as
cost pressures on the dairy industry intensify.
Campina has bought dairy ingredient producer Inovatech Argentina,
signalling the Dutch-owned company's desire to reach further into
the global specialized ingredients market, with an particular
emphasis on nutrition.
Uncertainty continues to hang over Arla Foods in its key Middle
East dairy market, after it said sales there have been slow to
recover from a region-wide boycott against its products.
British dairy officials are lobbying the European Union to stick to
its 2013 deadline for scrapping export subsidies, after nations
outside the bloc called for aid to end faster.
Brands and a functional food focus helped Dairy Crest to increase
sales in 2005, but profits slumped amid rising costs and tough
times for the group's milk supply division.
Europe's top dairy firms are at the centre of the row over European
Union export subsidies, after a new report revealed which UK
dairies are lapping up the aid.
An increase in selling prices helped dairy processor Robert Wiseman
to begin clawing back lost profits, as the group looks to continue
the momentum with more new products and facilities.
Disgraced Italian dairy giant Parmalat, still suffering from 2003's
fraud revelations, has posted a jump in first-quarter income -
thanks to CEO Enrico Bondi's recuperation strategy.
San Miguel's chief executive reassured investors on Tuesday by
outlining its plans to concentrate on growing sales and sustaining
profits over the coming years.
The frozen desserts industry saw further European consolidation as
an equity firm swooped in to take Richmond Foods, Britain's largest
ice cream manufacturer.
The French government has set aside an extra €10m to aid
consolidation and restructuring in the country's dairy industry so
far in 2006, continuing its interventionist strategy for the
sector.
A new European Court of Justice ruling should provide Bank of
America with a degree of comfort over its recent travails with
Italian dairy giant Parmalat.
The European Commission has raised export subsidies available for
butter for the second month running, bowing to pressure from member
states concerned at volatile markets.
Groupe Danone's growing interest in the Algerian dairy market
underlines the importance of the North African / Middle East region
to European milk processors.
Lactalis has the European Commission's blessing to complete its
takeover of Italian cheese producer Galbani, opening up new avenues
for the French giant in speciality cheese.
Swiss food giant Nestlé has announced a first-quarter sales rise of
14.1 per cent to CHF22.8bn (€14.5bn), beating analyst expectations
and reconfirming its full-year target of a five to six per cent
growth rate.
Number one dairy producer Danone has recorded strong results for
the first quarter of 2006, bolstered by a focused leadership and
continuing record sales in Asia.
Kraft Foods has recorded stable first quarter results, masking
falling operating income with a favourable tax settlement and
raising prices to combat spiralling production costs.
Nestlé has finalised arrangements for a new fund that will invest
in food companies producing for the health, well-being and
nutrition sectors, as part of the group's drive to stay on top of
consumer health trends.
French dairy giant, Danone, has launched an action against Glanbia,
Yoplait International and Yoplait Marque Internationales in the
Dublin High Court, after alleged infringments on trademark after
the launch of the Yoplait Essence...
Fonterra, the world's biggest exporter of dairy products, said
today that it has gained approval from the Chinese government for
its purchase of a 43 per cent stake in dairy company San Lu.
Parmalat's profit before interest and tax rose 18.4 per cent in the
first two months of 2006 to € 45 million, with predictions that net
debt would remain stable over the year.
Early signs suggest a recovery on Britain's dairy market as both
Arla Foods UK and Robert Wiseman halt the margin rot with brand
development and price rises.
Arla Foods has said the boycott on its products in the key Middle
East dairy market was slowly lifting, thanks to its dominance in
certain areas of the Middle East dairy market.
A new report rating the nation's organic dairy brands according to
ethical farming practices has sparked fierce debate in the industry
as it accuses a number of market leaders of "shortchanging
organic consumers."
Robert Wiseman's takeover of Definitely Devon's liquid milk
business shows how consolidation on Britain's dairy industry is
continuing amid tension with competition authorities.
In a move that brings it closer to a key customer, Graham Packaging
has opened a new bottle-making plant in Zoetemeer, the Netherlands,
on site with Royal Numico.
Europe has no time for national champions if it is to compete in
the world, warned the European Commission president Wednesday, as
French president Jacques Chirac dismissed claims that France was
protectionist.