Pricing Pressures

Saputo has made five acquisitions in the last 13 months, bumping up its revenue. Pic: Getty/haurashko_ksu

Saputo’s annual revenue jumps 17% after three acquisitions

By Beth Newhart

Saputo Inc. reported its latest fourth quarter and fiscal year results, ending March 31. It completed a series of acquisitions last year that contributed to higher revenue, while low cheese prices and struggles with the Canadian dollar hurt overall earnings.

Synlait said its forecast relies on pricing remaining robust throughout the season. Pic: ©Getty Images/pavlinec

Synlait sets 2019/20 forecast milk price

By Jim Cornall

New Zealand dairy company Synlait Milk has set its opening forecast base milk price for the upcoming 2019/2020 season at NZ$7.00 kgMS (US$4.58).

Edge believes the aid will provide only partial and short-term relief for farmers. Pic: Getty/Annimei

USDA authorizes $16bn aid package for US farmers

By Beth Newhart

US President Donald Trump and US Secretary of Agriculture Sonny Perdue announced ‘several actions’ to help farmers in the wake of the recent trade war with China, including $16bn in aid.

Without an agreement, America is in danger of being left behind in its fourth biggest market. Pic: ©Getty Images/Nelson_A_Ishikawa

Why the US needs to sign a trade deal with Japan

By Richard Whitehead

While America continues to wage its trade war against China with ever-inflating tariffs, it would be well advised to look at at trade agreements with another vitally important East Asian market.

Overall, global milk supply growth will likely remain flat through 2020. Pic: Getty/Tim Allen

US milk production drops in the midwest

By Beth Newhart

In the first quarter of 2019, US dairy production and exports were down compared to Q1 2018, particularly in the midwestern states. Globally, dairy is still dominated by a few key players and facing challenges from African Swine Fever.

Fonterra's Fixed Base Milk Price is a risk management tool that lets farmers lock in a set price for up to 70% of the season’s milk before it starts. Pic: ©Getty Images/petej

Fonterra announces fixed base milk price for 2019/20

By Jim Cornall

Fonterra farmers in Australia participating in the company’s Fixed Base Milk Price will be paid a guaranteed price of A$6.80 (US$4.74) per kilogram of milk solids (kgMS) for a portion of their milk for the 2019/20 season.

Hochdorf said due to higher costs and depreciation the half-year result is expected to be significantly below that of the previous year.

News in brief

Hochdorf says first-half results will be down

By Jim Cornall

Switzerland’s Hochdorf Group has warned that its half year results are going to be worse than expected partly due to the challenges of integrating subsidiaries.

Synlait has applauded the New Zealand government's sustainability initiative. Pic: ©Getty Images/PatrikStedrak

Synlait supports Zero Carbon Bill

By Jim Cornall

New Zealand dairy company Synlait has responded positively to the government's Zero Carbon Bill announcement, which includes new methane targets.

The decision tool assists producers with calculating total premiums costs and administrative fees associated with participation in DMC. Pic: ©Getty Images/steverts

USDA launches decision tool for Dairy Margin Coverage program

By Jim Cornall

US Agriculture Secretary Sonny Perdue has announced the availability of a new web-based tool – developed in partnership with the University of Wisconsin – to help dairy producers evaluate various scenarios using different coverage levels through the new...

Kroger intends to use the after-tax cash proceeds to reduce its debt. Pic: Getty/martinrlee

Kroger completes Turkey Hill sale

By Beth Newhart

After announcing that it may drop its flagship dairy brand last August, Kroger sold Turkey Hill to Peak Rock Capital earlier this year. The agreement was completed this week for $215m.

Project Darwin aims to reduce cost and improve margins.

Müller confirms UK dairies review

By Jim Cornall

Müller Milk & Ingredients (MMI), Britain’s largest producer of branded and private label fresh and flavored milk, cream, butter and dairy ingredients, is to review its network of dairies as part of its £100m ($129.4m) Project Darwin program, and enter...

The UK imports more mozzarella than it exports. Pic: ©Getty Images/kiboka

No-deal Brexit could shred UK mozzarella business

By Jim Cornall

According to AHDB Dairy, under a no-deal scenario, the UK would face the EU common external tariff on any exports sent to the EU, meaning tariffs of €185.20/100kg ($208.50) on mozzarella.

The DBA met in Madison to discuss the future of Wisconsin's dairy community. Pic: Getty/Sean Pavone

DBA announces legislative and budget priorities in Wisconsin

By Beth Newhart

The Dairy Business Association (DBA), an organization of the Wisconsin dairy community, outlined its legislative and budget priorities for 2019-2020 at a Dairy Day this month, taking place at the Capitol in Madison.

Representatives from African and European organizations called for a balanced agricultural and trade policy in the EU to guarantee fair conditions for dairy farmers in Africa and Europe.

Rally calls for sustainable European production

By Jim Cornall

At a rally close to the EU Council building earlier this week, dairy farmers from Burkina Faso, Mali, and three other West African countries joined European dairy farmers to call for sustainable production in Europe and Africa to ensure the survival of...

Will raising the liter price of milk help farmers? Pic: ©Getty Images/petej

It’s hard to see much respite when Australian prices continue to be set from overseas

Will Aussie dairy farmers gain as much as they hope with end of the milk wars?

By Richard Whitehead

Less than a month after the Australian dairy industry marked the eighth anniversary of the so-called “milk wars” last Australia Day, Woolworths announced it would break ranks and rise its prices.

Global economic growth is looking gloomy and the US could see a recession next year. Pic: Getty/nanoqfu

Global milk supply growth has stalled in 2019

By Beth Newhart

The first quarter of the year is coming to a close, and Rabobank has released Q1 2019 numbers from its Dairy Quarterly report. The world’s largest exporters of dairy have stalled in year-over-year milk supply growth, but the US is experiencing a mixed...

Dairy manufacturers are struggling with production efficiency, unplanned machine downtime, maintaining quality, and environmental sustainability.

Processing dairy trends at ProFood Tech

By Beth Newhart

Production efficiency, automation innovation and CPG trends in dairy were all showcased at the ProFood Tech show in Chicago last week.

NZMP showcased its solutions at Gulfood in Dubai and Food Ingredients China (FIC) in Shanghai.

NZMP moves to soothe uncertainty

By Jim Cornall

NZMP, the global dairy ingredients brand of Fonterra, has refreshed its market-leading risk and commercial solutions.

Dairy concerned by Trump Mexican border closure threats

By Beth Newhart

Last week President Donald Trump announced plans to close the southern US border, effectively ending trade with Mexico. He has since changed his mind and now given Mexico ‘a one-year warning’ with further threats of tariffs.

The Kerrygold Butter is now the number two butter brand in the US, with 2.6m packets sold every week. Pic: Ornua

Ornua notches a €40m operating profit in 2018

By Beth Newhart

Ornua, producer of the Kerrygold brand, released its full-year 2018 results that showcased a strong performance in its key European and US markets. It also broke ground on a cheese facility in Spain and prepared for potential fallout from the Brexit deal....

Westland's Rolleston plant.

News in brief

Westland Milk Products lowers pay-out prediction

By Jim Cornall

Lower than expected sales have led to the board of New Zealand’s Westland Milk Products to lower its predicted payout range for the 2018-19 season to NZ$5.80 - NZ$6.00 (US$3.95-US$4.08).

The changes are part of Valio's three-year program.

News in brief

Loss of 80 jobs at Valio

By Jim Cornall

Finnish dairy cooperative Valio has announced a reduction of 80 positions at the company.

Kroger has recently put new emphasis on its ecommerce platform by launching Kroger Ship last summer.

Peak Rock acquires Turkey Hill Dairy from Kroger

By Beth Newhart

Peak Rock Capital has signed an agreement to acquire the Turkey Hill Dairy business from The Kroger Co., known for ice cream, refrigerated drinks and other dairy products. It marks Peak Rock’s eighth current investment in the food and beverage industry.

Dean Foods is looking into several options to position the brand for the long term, despite poor 2018 numbers.

Bernstein drops Dean Foods after poor 2018 performance

By Beth Newhart

After a disappointing 2018 for Dean Foods, it revealed last month that it was considering a sale. Investment management firm Bernstein has announced that it is “discontinuing coverage of Dean Foods (DF) due to the stock's diminished market cap and...

Fonterra's Danfield plant.

Fonterra ups milk price, drops earnings forecast

By Jim Cornall

New Zealand’s Fonterra Co-operative Group Limited has increased its 2018/19 forecast Farmgate Milk Price range to NZ$6.30-NZ$6.60 (US$4.29-$4.49) per kgMS, up from NZ$6.00-NZ$6.30 (US$4.08-$4.49), and revised its forecast earnings down to 15-25 cents...

Grupo Lala's profits as reported were up by 13.4% compared to 2017, and milk remained the top-earning segment of the business.

Blue Diamond Almond Breeze products are coming to Mexico

By Beth Newhart

Grupo Lala announced this week that it reached a deal with Blue Diamond Growers to distribute Blue Diamond Almond Breeze almond beverages in Mexico. It also released fourth-quarter and full-year financial reports from 2018.

Dean Foods plans to invest in its core capabilities, technology, infrastructure, people and systems.

Sharp loss in profit forces Dean Foods to consider sale

By Beth Newhart

A disappointing fourth quarter for Dean Foods rounded out an under-performing 2018, causing the dairy giant to explore alternatives in its ‘business transformation.’ It is considering a joint venture, business combination or even a sale.

Glanbia has acquired Watson, a US non-dairy ingredient solutions business.

Glanbia finalizes acquisitions, wraps up 2018

By Beth Newhart

Glanbia plc released its 2018 financials this week, revealing growing profits on the back of a few high-profile acquisitions. The nutritional ingredients and dairy business is dipping into the non-dairy sector and reorganizing its board of directors in...

Arla Foods CEO Peder Tuborgh, Chairman Jan Toft Nørgaard and CFO Natalie Knight answer questions at the 2018 annual results press conference.

Arla pays out all 2018 profits to farmers

By Beth Newhart

In its 2018 wrap-up report, Arla Foods announced that it would pay out its full net profit for 2018 of €290m ($329m) to farmers. It also discussed the progress of in-house cost-savings program Calcium and pending sustainability efforts.

General Mills expects the plant closure to cost roughly $130m.

General Mills to shutter yogurt plant in California

By Beth Newhart

General Mills is focusing on ‘restructuring actions’ in its yogurt business and closing a facility in Carson, Calif. The company also reaffirmed its end-of-year financial targets at an investor conference in New York.

As GHG emissions go down, butter prices could go up

By Beth Newhart

The EU uses environmentally friendly fuels like ethanol and biodiesel to reduce greenhouse gas emissions (GHGs). But the vegetable oils that make up EU biodiesel are facing high demand and a higher carbon tax, resulting in price increases for butter.

Governor of Washington Jay Inslee declared a state of emergency with more snow on the way. Pic: ©GettyImages/Kayla Teske

1,600 dairy cows are dead after Washington blizzard

By Beth Newhart

The Dairy Farmers of Washington (DFW) has reported that more than 1,600 cows perished during an unusually heavy snowstorm in the Yakima Valley region of Washington State. The significant loss further burdens an already-struggling industry.

Overall US cheese production likely reached 13 billion pounds in 2018. Pic: ©GettyImages/ShotShare

US cheese surplus not an 'unusually enormous amount'

By Beth Newhart

Last month, the American Dairy Coalition (ADC) called attention to the record 1.4 billion pounds of surplus cheese currently in US cold storage. But it may not have a simple solution, or even be as big of a problem as the public thinks.

Synlait’s next milk price update for the 2018/2019 season will be in May.

Synlait drops forecast milk price

By Jim Cornall

New Zealand dairy company Synlait said it is dropping its milk price forecast for the 2018/2019 season to NZ$6.25 kgMS (US$4.28) from the previously announced NZ$6.75 (US$4.63).

“People just have to be willing to take 60 seconds to make it.

Modest Mylk ditches the carton for sustainable nut beverage bases

By Beth Newhart

A new make-your-own nut-based milk alternative is hitting the market this month. Modest Mylk is a nut paste sold in glass jars designed to blend with water into a ‘milk-like’ beverage, which the company says is more sustainable and affordable than conventional...

It is estimated that only about 13% of the milk produced by Australian dairy farms ends up as fresh milk. Pic: ©Getty Images/petej

‘Australian supermarket wars could put half of suppliers out of business’

Eight years on, one dollar milk is still crippling farmers

By Richard Whitehead

Exactly eight years ago, Australian supermarkets began selling a liter of milk for one dollar (72 US cents). As farmers are getting ready for Australia Day anniversary, the industry continues to reel.