Pricing Pressures

Kite Consulting said from 2021 to early 2023 total costs of production will have risen by 29%.

UK dairy production costs could soar to more than 40ppl

By Jim Cornall

Recent analysis by Kite Consulting in the UK shows dairy farm costs of production will continue to rise considerably in the coming months, with break-even milk prices likely to exceed 40 pence per liter (52 cents) later this year.

Ongoing shortages of some raw materials and supply chain disruption are impacting availability and costs.  Pic: Getty Images/o-che

Flexible packaging costs continue to rise

By Jim Cornall

The prices of materials often used for flexible packaging continued to accelerate in the final quarter of 2021, due mainly to the spike in energy costs, which began to increase dramatically after August, according to Flexible Packaging Europe (FPE), the...

Fonterra said the increase is the result of consistent demand for dairy at a time of constrained global milk supply.  Pic: Fonterra

Fonterra hikes forecast Farmgate Milk Price range

By Jim Cornall

Fonterra Co-operative Group has boosted its 2021/22 forecast Farmgate Milk Price range to NZ$8.90 - $9.50 per kgMS (US$5.94-US$6.34), up from NZ$8.40 - $9.00 per kgMS (US$5.61-US$6.01).

the Federal Milk Marketing Order in line with these changes.

King backs legislation on dairy pricing for farmers

By Jim Cornall

U.S. Senator Angus King (I-Maine) is cosponsoring bipartisan legislation that would direct the U.S. Department of Agriculture (USDA) to begin holding Federal Milk Marketing Order (FMMO) hearings by this summer, to give milk producers a greater voice in...

Signup for the DMC runs until February 18.  Pic: Getty Images/stu99

USDA opens 2022 signup for Dairy Margin Coverage

By Jim Cornall

The U.S. Department of Agriculture (USDA) has opened signup for the Dairy Margin Coverage (DMC) program and expanded the program to allow dairy producers to better protect their operations by enrolling supplemental production.

Pic: Getty Images/brians101

Maxum Foods issues global dairy commodity update for December

By Jim Cornall

In its December overview of the global dairy commodities market, Maxum Foods said the outlook for market fundamentals has further tightened on the supply side in the past month, with peak production in NZ remaining weaker than expected and continued downward...

Pic: Getty Images/Andrei Stanescu

Bipartisan Dairy Pricing Opportunity Act of 2021 introduced

By Jim Cornall

Senators Kirsten Gillibrand (D-NY), Susan Collins (R-ME) and Patrick Leahy (D-VT) have introduced the bipartisan Dairy Pricing Opportunity Act of 2021 in the United States Senate. The bipartisan legislation launches national hearings on Federal Milk Marketing...

The cost of milk to make dairy products in Canada is set to rise by an average of 8.4%.  Pic: Getty Images/Rowena Kong

Canadian retail and foodservice set to see dairy price hike

By Jim Cornall

The cost of milk to make dairy products in Canada is set to rise by an average of 8.4% following a Canadian Dairy Commission (CDC) review of Canadian farm gate milk prices and other costs used in administering the supply management system.

Pic: Getty Images/stu99

Stonyfield steps in for Northeast milk producers

By Jim Cornall

Organic yogurt maker Stonyfield Organic has announced plans to help save at-risk Northeast organic family farms by inviting some farms into their direct supply program during the coming months.

Bimbosan launched an infant formula based on goat milk in Switzerland that has already been integrated into the export business.

Hochdorf announces interim results

By Jim Cornall

Swiss dairy company Hochdorf has announced its interim results for the first half year, and said it is optimistic about its future.

The EMB General Assembly took place online this year. Pic: EMB

EMB says future of milk depends on more young farmers

By Jim Cornall

At its biannual General Assembly, which was a digital event this spring, the long-term survival of European milk production was the main topic for the producers coming together as members of the European Milk Board (EMB).

The group said the proposal, Class III Plus, aims to define a better Class I pricing system. Pic: Getty Images/Matt Anderson

Dairy farmer groups propose Class III Plus for better milk pricing

By Jim Cornall

Four US Midwestern dairy groups have announced a Federal Milk Marketing Orders (FMMO) proposal aimed at creating long-term stability in fluid milk pricing and reducing the likelihood of negative producer price differentials that cut into farmers’ revenue...

The baby care division The division focused on current nutritional trends to expand its portfolio, developing a range based on goat's milk and a vegan infant formula based on GMO-free soya.  Pic: Hochdorf

Profit up despite sales drop at Hochdorf

By Jim Cornall

Swiss company Hochdorf Swiss Nutrition Ltd said during 2020 it largely completed the restructuring it began in summer 2019. The integration of Bimbosan was implemented with its move to Hochdorf in January 2021.

Rabobank says demand will be in the driver’s seat in 2021.

Rabobank sees positive times ahead for dairy

By Jim Cornall

Rabobank said after a whole year of pandemic and lockdowns across the globe, the view of the future is clearer and more hopeful than it has been for months.

 Fonterra said it expects its earnings performance to come under significant pressure in the second half.

Fonterra reveals Beingmate share sale in financial report

By Jim Cornall

Fonterra Co-operative Group Limited has announced its 2021 interim results, which show a total group normalized EBIT of NZ$684m (US$494m), normalized profit after tax of NZ$418m (US$302m) and a decision to pay an interim dividend of 5 cents alongside...

Arla Foods UK is proposing to close its plant in Trevarrian, Cornwall. Pic: Arla Foods UK

Arla looking to close cheese site in UK

By Jim Cornall

Following a decline in site volumes due to loss of own-label cheese contracts, as well as continued instability in foodservice demand due to the ongoing pandemic, dairy cooperative Arla Foods is proposing to end production at its Trevarrian Creamery in...

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