Pricing Pressures

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.

The Norwegian company is still looking to cost savings in 2020. Pic: TINE

TINE Group sees expected decline in 2019

By Jim Cornall

Norwegian dairy company TINE said it will be looking at the viability of some of its facilities as it announced expected losses in 2019 in spite of cost savings and growth in flavored milk and cheese.

Environmental challenges may lead to a new dependence on imported milk and products. Pic: Getty Images/Ram Tekale

US president to travel to Delhi later this month to reopen negotiations

Trump’s hopes of a trade deal with India may again be dashed

By Richard Whitehead

A feeling of victory among the Indian dairy industry has turned into one of tension as it anticipates a visit by the American president, who is expected to come armed with a new trade deal.

“We have to disrupt our industry from within, or we’ll be disrupted from without.

DBA appeals to farmers of the future for industry disruption

By Beth Newhart

Some top priorities for US dairy farmers in 2020 are future planning, risk management and secure milk supplies. All were examined at the Dairy Business Association’s (DBA) Dairy Strong conference in Wisconsin in January.

“We aren’t going to stop change, and we aren’t going to stop technology.

IDFA zeroes in on next-gen, and ‘making what we can sell’

By Beth Newhart

At the International Dairy Foods Association’s (IDFA) Dairy Forum this week, president and CEO Michael Dykes spoke of the challenges facing US dairy, including product innovation, milk bankruptcies and setting the industry up for a sustainable future.

“Today we are finally ending the NAFTA nightmare.

USMCA signed into law by Trump

By Beth Newhart

The US Mexico Canada Agreement (USMCA) passed the House in late 2019 and the Senate earlier this month. It replaces the previous North American Free Trade Agreement (NAFTA).

The IICMA warned of several negative impacts of reduced SMP supply. Pic: Getty Images/Ram Tekale

Concerns in India over possible ice cream price hike

By Jim Cornall

Ice-cream and frozen-dessert manufacturers in India are facing difficulties in finding skimmed milk powder (SMP), as stock is not available in the market and there is sudden hike in its unit price.

Positive dairy reaction as USMCA passes Senate

By Beth Newhart

After months of uncertainty, the US Mexico Canada Agreement (USMCA) has officially passed the US House and Senate. President Donald Trump said he will sign it into law next week.

“With an election year, sometimes legislative activity grinds to a halt.

NMPF outlines the legislative dairy landscape in 2020

By Beth Newhart

The National Milk Producers Federation (NMPF) projects that the USMCA bill will pass the Senate soon, followed by a greater focus on agriculture labor, transportation and infrastructure and childhood nutrition this year.

Wisconsin lost nearly 1,500 dairies in two years, despite the industry's significant contribution to the state's economy. Pic: Getty/Dcwcreations

More than 800 Wisconsin dairies closed in 2019

By Beth Newhart

Data from the Wisconsin Department of Agriculture revealed that a record 10% of dairy farms in Wisconsin shuttered last year. It topped 2018’s loss of 7.25%.

With the 2020 US election looming, the US dollar is expected to be volatile and affect global dairy. Pic: Getty/sergeyryzhov

Higher dairy prices are on the horizon

By Beth Newhart

As the year's fourth quarter wraps up, Rabobank's RaboResearch looks back on global dairy's performance in 2019, and ahead to 2020. Milk production and prices are up, leading to challenges for producers.

The new code prohibits retrospective pricing step downs. Pic: Getty Images/JohnCarnemolla

Australia’s new mandatory dairy code welcomed

By Jim Cornall

Australian dairy farmers now have a rule book to help them negotiate a fair price for their product with a mandatory Dairy Code of Conduct taking effect from January 1, 2020.

The deal is being reviewed by legal channels, and has not yet been signed by officials in either country. Pic: Getty/Christoph Burgstedt

US reaches new trade deal with China

By Beth Newhart

The US government announced a ‘Phase One’ trade deal on Friday that stipulates China will make substantial purchases of US goods and services in the coming years, including from agriculture.

Nestlé USA is the second largest ice cream manufacturer in the US, and Froneri will now be the second largest ice cream manufacturer in the world.

Froneri scoops Nestlé’s US ice cream division for $4bn

By Beth Newhart

Froneri started as an ice cream-focused joint venture between Nestlé and PAI Partners in 2016, and the relationship will be furthered by the acquisition of Nestlé USA’s collection of ice cream brands.

Hochdorf said it will in future increasingly work with the traditional Swiss brand Bimbosan and the Babina brand.

Hochdorf sells Pharmalys stake to Pharmalys Invest Holding

By Jim Cornall

The Board of directors of Switzerland’s Hochdorf Group has sold its 51% majority stake in companies of the Pharmalys Group acquired at the end of 2016 to Pharmalys Invest Holding, controlled by Amir Mechria.

“Dairy farmers in Pennsylvania and across the US are in the fourth year of an economic downturn in which many farmers are struggling to break even.

Conservation pays on US dairy farms, even in a weak economy

By Beth Newhart

In a collaboration between the Environmental Defense Fund (EDF) and four Pennsylvania dairy farmers, a new report finds that conservation practices generally result in a farm’s good economic health. But farmers can’t do it alone.