Pricing Pressures

 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...

The European Milk Board says producing organic milk isn't profitable for farmers in Germany.

How sustainable is organic milk?

By Jim Cornall

According to the “Ökobarometer 2019” survey on organic food products conducted by the Federal Ministry of Food and Agriculture (BMEL), the demand for organic products from German consumers keeps growing.

Last week MEPs voted on the European Parliament’s position on common agriculture policy reform.

EMB says new crisis instrument is a first step

By Jim Cornall

European Milk Board (EMB) president Sieta van Keimpema said European dairy farmers are happy that the vote on the Common Market Organisation (CMO) in the European Parliament showed many MEPs are aware the EU agricultural sector needs effective crisis...

The FSA has issued more than $176m in program benefits to dairy producers who purchased DMC coverage for 2020. Pic: Getty Images/Andrei Stanescu

May margin triggers Dairy Margin Coverage Program payment

By Jim Cornall

The U.S. Department of Agriculture’s Farm Service Agency (FSA) says the May 2020 income over feed cost margin was $5.37 per hundredweight (cwt.), triggering the third payment of 2020 for dairy producers who purchased the appropriate level of coverage...

The dairy code came into effect on January 1, 2020, as it was a key recommendation of the ACCC's 2018 dairy inquiry. Pic: Getty Images/JohnCarnemolla

ACCC looking into dairy code compliance

By Jim Cornall

The Australian Competition and Consumer Commission (ACCC) is monitoring the introduction of the new mandatory dairy code of conduct, including by checking processors’ compliance with the code, and said it is ready to take enforcement action where appropriate.

Dairy Dialog podcast 88: Nutricia, FAIRR, Mettler Toledo, MVP Dairy

Dairy Dialog podcast 88: Nutricia, FAIRR, Mettler Toledo, MVP Dairy

By Jim Cornall

This week, guests on the podcast are Patrick Kamphuis, senior medical affairs director at Nutricia; Teni Ekundare, investor outreach manager, UK & Northern Europe, FAIRR Initiative; Frank Borrmann, market manager SBU Checkweighing, Mettler Toledo;...

Faireswiss milk is available as UHT full and partially skimmed milk in Tetra Edge packaging. Pic: SPAR

SPAR supporting Swiss dairy farmers

By Jim Cornall

All 180 SPAR Supermarkets and convenience stores in Switzerland now offer Faireswiss milk, a brand that guarantees dairy producers a fair purchase price of CHF1.00 ($1.05) per liter.

NFU Scotland said as the country enters the recovery phase, Scottish agriculture should embrace change and seek new market opportunities, and lead in the delivery of climate ambitions and a flourishing environment.

Scottish dairy sector looking to recovery

By Jim Cornall

As countries emerge from lockdown restrictions, Scotland’s dairy farmers are looking to build stronger supply chains and discuss milk contracts as they recover from the impacts of the coronavirus crisis, says NFU (National Farmers’ Union) Scotland.

The ICMSA said milk processors could not ask farmer-suppliers to accept an artificially low price that is contradicted by weeks of hard market data.

ICMSA says milk prices for farmers must reflect recovery

By Jim Cornall

The chairperson of the Irish Creamery Milk Suppliers Association’s (ICMSA) dairy committee says his association expects the prices to be announced by milk processors in the coming days for milk supplied in May to reflect a “surging recovery.”

At least $100m per month in dairy product purchases has been earmarked for distribution to the public through food assistance programs. Pic: Getty Images/Matt Anderson

Dairy groups react to $19bn disaster package

By Jim Cornall

The National Milk Producers Federation expressed appreciation to Agriculture Secretary Sonny Perdue for including dairy in the US $19bn agriculture disaster assistance package, while noting that more will be needed to stem steep losses in the dairy sector.

The Wisconsin Dairy Alliance says a stronger proposal is that of the Minnesota Milk Producers Association, which is pitching the Dairy CORE Program. Pic: Getty Images/Matt Anderson

Alternatives to Milk Crisis Plan emerge

By Jim Cornall

Last week, the National Milk Producers Federation (NMPF) and the International Dairy Foods Association (IDFA), submitted a request for assistance – The Milk Crisis Plan – to Agriculture Secretary Sonny Perdue.

The EDA said it is looking for immediate action by the EU.

EDA ramps up pressure for activating Private Storage Aid

By Jim Cornall

The European Dairy Association (EDA) says it is shocked and concerned that EU Commissioner Janusz Wojciechowski has not yet responded to its letter, and is counting on EU Member States at next Monday’s videoconference of the Special Committee on Agriculture...

DFA to purchase a portion of Dean Foods’ assets for $433m

By Beth Newhart

After several months of back and forth following the Dean Foods bankruptcy, the Dairy Farmers of America (DFA) co-op is acquiring a majority of its assets for $433m. Prairie Farms Dairy will also get a portion for $75m.

Snacks and plant-based products showed growth in Finland.

Valio issues 2019 financials

By Jim Cornall

Finnish dairy cooperative Valio Group’s net sales were €1,787m ($1.98bn) in 2019, representing 3% growth from the previous year.

“In times like this, the resilience of the human spirit is more visible than ever. It’s incredibly uplifting to see so many businesses and individuals stepping up.

Dairy donates time, money and food to the coronavirus pandemic

By Beth Newhart

The coronavirus is upending businesses and economies around the world, and the dairy sector isn't immune. While some aspects of the industry need stability and assistance, others are able to share their wealth and give back.

DFA is re-evaluating its options to submit another bid by the deadline.

DFA is no longer confirmed to purchase Dean Foods

By Beth Newhart

Though it was announced last month that Dean Foods and the Dairy Farmers of America (DFA) entered into an asset purchase agreement, that has been mutually terminated. The co-op is still in the running but is no longer the ‘stalking horse’ bidder.

The EDA is looking to the European Commission to act on several recommendations for dairy products.

EDA looks to keep dairy open despite coronavirus challenges

By Jim Cornall

In an open letter sent out to the EU Commission, European Parliament’s COM AGRI and EU Member States’ / UK Agricultural Counsellors, Alexander Anton, secretary general of the European Dairy Association (EDA), set out an assessment of the current situation...

Fonterra said it is operating in a different global context as a result of COVID-19.

Fonterra reports interim results

By Jim Cornall

Fonterra Co-operative Group Limited has announced its 2020 interim results, which show the cooperative’s financial performance has improved with increased underlying earnings and reduced debt.

US lays out new COVID-19 guidelines for food industry

By Beth Newhart

The Trump Administration released a set of coronavirus guidelines for all Americans, with special provisions for critical infrastructure industries like food and beverage. Brands have been adapting this week to the new reality, while keeping employee...

Rabobank is lowering its 2020 US demand growth projections from 0.8% to 0.5%, as consumers quarantine during the COVID-19 pandemic. Pic: Getty/Chinnapong

The ripple effects of COVID-19: A look into global dairy

By Beth Newhart

Rabobank assesses how the ‘corona hangover’ will impact global dairy markets in its latest report. Demand in China is already starting to bounce back after its virus exposure seems to have peaked, while the US will suffer in the coming months as cases...

RABDF and the NFU both expressed concerns over the new immigration policy.

Dairy farmers group slams UK government immigration proposals

By Jim Cornall

The Royal Association of British Dairy Farmers (RABDF) is calling on the Government to amend its decision not to include dairy workers on the MAC shortage occupation list following the announcement of a new points-based immigration system.

“We are supporting dairy as it moves into a new era of data generation, management, integration, collaboration, and insight development that will improve efficiencies and increase profitability for producers.” Pic: SomaDetect

SomaDetect partners with Valley Agricultural Software

By Beth Newhart

Valley Agricultural Software’s (VAS) Software API will soon be integrated into SomaDetect’s data system. SomaDetect analyzes milk quality and herd health using light scattering technology.