In a major move that might help reduce the pricing power of the
UK's major supermarkets, the Office of Fair Trading (OFT) yesterday
said it would refer the issue to the Competition Commission (CC)
for more detailed examination.
Workers at UK dairy giant Dairy Crest may strike over the group's
plans to reform its debt-laden pension scheme, threatening to
disrupt supplies to retailers and processors.
A top economic expert has warned against growing economic
nationalism in Europe, as reports say the French government will
move to protect 20 companies, including Danone and Carrefour, from
foreign takeovers.
Arla Foods says a boycott on its dairy products in the Middle East
will cost it at least €53m this year, as the firm tries to remain
positive about the long road to recovery.
The Czech Republic's dairy industry is facing a €7m (CK 200m) fine
as milk output is forecast to exceed the national quota for 2005/6
of 2.682 billion kilos.
Parmalat's chief executive Enrico Bondi has pointed the finger at
the company's creditors, accusing them of having knowledge of the
disgraced dairy giant's finances.
Added value dairy products are the only path open to European
dairies if they are to stay competitive in the future, says Peter
Mandelson to the UK National Farmers' Union conference.
Nestlé's Americas division has established itself as the food
firm's most important business region for the first time following
difficult conditions and subdued sales growth in Europe.
Dairy group Arla Foods has signed an organic dairy supply deal with
discount retailer Lidl, as big food firms increasingly move in on
rising consumer demand for organic food.
A Danish court has fined Arla Foods €670,000 for abusing its
dominant position on Denmark's dairy market, further jeopardizing
the group's public image in the country.
Danish dairy group Arla Foods said sales had come to a standstill
in the firm's key Middle East region as Muslim consumers in several
countries boycotted Danish products.
Campina, the Dutch dairy co-operative, will target rapidly growing
demand for dairy drinks in Thailand after signing a joint-venture
deal with local firm Thai Dairy Industries.
Kraft Foods has announced plans for a major European reshuffle and
a string of acquisitions, as US parent company Altria segregates
the food producer from its ailing tobacco subsidiary.
Nestlé says it has opened up a clear lead on the global ice cream
market after getting full ownership of US firm Dreyer's and
successfully tapping into health and convenience trends.
Lactalis, France's largest dairy processor, has carried its
wheeling and dealing on into 2006 after signing a deal to buy
Italian cheese producer Galbani.
Dairy Crest, Britain's biggest dairy processor, has denied holding
takeover talks with French dairy giant Lactalis, despite the
emergence of Lactalis documents weighing up the pros and cons of a
deal.
Complex webs of assumptions are spinning a lie about the real value
of today's companies, lulling directors and shareholders alike into
a false sense of value creation.
Arla Foods UK has announced promising progress for the year but
warned farmgate milk prices were likely to fall and consumers will
have to pay more for steep input cost rises.
Lactalis, the largest French dairy processor, has struck a deal
with Dutch dairy Friesland Foods to combine the two groups'
marketing teams in Germany.
Today's board meeting at Parmalat, the first since Enrico Bondi was
appointed as chief executive last week, will help to determine
which direction the Italian dairy giant goes from here.
Britain's Office of Fair Trading is investigating allegations of
price-fixing by top dairy processors as the government agency draws
increasing criticism from the industry.
Dairy Crest saw its profits slashed by half in its first six months
of this year, capping a difficult week for the British dairy
industry and underlining the pressing need for more strategies to
raise earnings.
Dairy processor Robert Wiseman warned farmgate milk prices would
have to fall after profits tumbled 22 per cent in the first half
due to rising oil and energy costs.
The threat of a Competition Commission inquiry has made Robert
Wiseman pull out of a deal to buy Scottish Milk Dairies, as the
dairy consolidation trend puts competition in the spotlight.
Nestlé says it will embrace moves by hard discounters to sell more
branded products as part of its plan to recover from difficult
times on Europe's food and drink market.
Added value dairy and soft drinks lead Danone to a sales rise in
the third quarter, but the firm is banking on a new pricing and
innovation strategy to re-ignite itself at home in France.
The EU's CAP reforms continue to force changes on Europe's dairy
firms as Arla Foods announced it will close a Danish milk powder
plant that is no longer vital for production.
The amount of fake food and drinks entering the EU grew by 200 per
cent last year, with the higher quality of counterfeits making
detection more difficult, the bloc's administrative arm said this
week.
Scandal-hit Italian dairy Parmalat has re-listed on the Milan stock
exchange as potential bidders begin to circle and the group widens
its lawsuit war against the world's major banks.
The UK branch of dairy processor and ingredients supplier Arla
Foods told investors yesterday that it is still on track to reach
revised profit targets for the year, boosted by its brands
performing well.
Dairy producers' losses from Hurricane Katrina could easily exceed
$40m, says a US dairy association, highlighting the prospect of
immeasurable long-term damage and raising questions over when
disaster aid will get through.
French yoghurt and biscuit maker Danone said today that it is not
looking to acquire the Dutch infant nutrition firm Numico, after
rumours that Danone was making a bid pushed up the Dutch group's
shares.
Uncertainty hangs over the UK dairy industry as Dairy Crest says
recent gains will not be enough to stop profits slipping, and rival
Wiseman warns rising costs will be hard to recover.
Coping with reforms to the EU's Common Agricultural Policy has
taken centre-stage for dairy firms across the bloc as Dutch group
Campina outlines a plan to swallow more than €80m of losses in aid
since 2003.
The trial of Calisto Tanzi, founder of scandal-hit Italian dairy
giant Parmalat, commences today amid charges of false accounting
and share price manipulation.