Russian milk production remains well below the country's output
targets for 2007, ensuring continued price hikes for the product on
the back of increasing global demand, according to the US
Department of Agriculture.
The EU's dairy management committee last week revoked
subsidies on all exported dairy products for the first time in 40
years, as increased demand amongst processors and consumers
continues to drive up prices.
Public debates over farmgate milk prices will take place across
Britain over the next couple of weeks, as producers and campaign
groups look to maintain pressure on retailers and processors.
As Tesco again displayed its power in the UK food chain with
another profits rise, dairy group Arla Foods joined a growing list
of processors to raise farmgate milk prices.
Milk producers in the UK have given a cautious welcome to milk
price rises announced by Tesco this week, in the latest development
on dairy farmer incomes.
A little piece of Fairtrade Fortnight touched the UK dairy industry
this week as the head of the Sainsbury's supermarket told farmers
he was willing to pay more for their milk.
Fonterra, New Zealand's largest dairy co-operative, predicted world
commodity prices would continue rebounding strongly over the next
few months as supply and demand tightened.
Rows over dairy price fixing allegations in Scotland took another
twist this week, after Arla Foods UK revealed it would sue rival
Robert Wiseman to recoup lost revenue.
Shares in dairy firm Robert Wiseman have struggled to recover in
recent days after Britain's competition watchdog accused the group
of fixing milk prices in Scotland.
UK dairy processor Milk Link will pay farmers more money for their
organic milk from this October as the industry attempts to keep
pace with soaring demand.
The current supply glut on the EU butter market will be solved by
more producers leaving the sector, says a Commission report, again
predicting a move away from commodities across the bloc.
Farmgate milk prices have continued to fall across the European
Union and most rapidly in France over the last year, new figures
show, increasing tension between producers and processors.
Rows over farmgate milk prices have intensified in France, with
leading French dairy processor Lactalis accusing its rival Sodiaal
of irresponsibly cutting the price it pays to producers.
Nestle doesn't expect raw material prices to rise further this
year, despite a recent FAO report that forecasts an increase of
over 2 per cent in the world food import bill in 2006.
Arla UK announced it would make more controversial cuts to farmgate
milk prices and fine producers for churning out too much milk, as
cost pressures on the dairy industry intensify.
Britain's dairy trade deficit grew again in 2005, highlighting that
the country is still too reliant on lower margin commodity goods,
leaving the domestic market exposed to foreign competition.
An increase in selling prices helped dairy processor Robert Wiseman
to begin clawing back lost profits, as the group looks to continue
the momentum with more new products and facilities.
Milk producers have renewed their fierce criticism of low farmgate
prices in Britain, as the country's competition watchdog prepares
to open an in-depth probe into the market practices of top
supermarkets.
Prices for raw materials and energy are forecast to rise by around
five to 10 per cent this year, but Nestlé believes cost cuts will
balance the equation out, the company's chief executive said
yesterday.
The international demand for dairy products has eased slightly and
prices for supplies are likely to moderate in the next several
months, according to a new report.
The FAO's predictions concerning commodity costs and production
show sustained high prices for milk and growing sugar consumption
in the developing world.
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.
British farmers are planning another strike in protest over low
prices paid by retailers and processors for their goods, adding to
calls from MPs and lobby groups for mandatory legislation to force
supermarkets into line.
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.
France's largest dairy processor, Lactalis, wants the industry to
introduce fixed prices for dairy products in order to cope with
unstable markets and insulate against cuts to EU export subsidies.
Ongoing price competition among European retailers has squeezed
prices for international branded foods in recent years, finds new
research from ACNielsen that confirms the pressure will
continue into the near future.
As a further sign that packing companies are about to hike prices
in a big way, two of the industry's associations have told
customers they should expect to pay more their products.
Opportunities in the mature enzyme market lie in developments,
driven by biotechnology, that provide food and beverage makers with
the right tools to meet consumer trends, claims a new report.
France's Carrefour, the world's second largest retailer after
Wal-Mart, has upped the stakes in the supermarket battle for market
share by announcing further price cuts and overseas expansion arein
the offing.
Food processors can expect the higher raw material costs hitting
packagers to be passed on soon depending on their contracts. This
means that, depending on contractural obligations, cosmetics and
toiletry producers can expect the...
Food makers turn to wood-sourced vanillin as high oil prices
continue to put pressure on the price of petrochemical-based
vanilla alternatives, and natural vanilla stocks remain
vulnerable,writes Lindsey Partos.
Stiffer competition between countries exporting wheat, oilseeds,
sugar and livestock will intensify over the next ten years,
bringing down prices, according to forecasts by the Organisation
for Economic Co-operation and Development...
Arla UK has been criticised for setting up a new wave of
instability through Britain's milk supply chain after it cut the
price it pays to farmers for milk, citing cost pressures,
reports Chris Mercer.
Nestlé, the world's biggest food and drink manufacturer, has
announced a modest increase in Q1 profits after successfully
offsetting rising raw material costs with price increases across
the UK and Continental Europe, Tom Armitage...
The US' Commodity Futures Trading Commission (CFTC) is to
investigate allegations of cheddar cheese price rigging, said to
have occurred at one of the country's most influential commodity
trading centres, Tom Armitage reports.
A 30 to 35 percent increase in milk prices caused Lifeway Foods'
operating profit to dip more than $0.5 million for full year 2004
on the previous year, despite a 9.7 percent increase in sales of
its probiotic dairy drinks, known...
Dairy Farmers of Britain (DFOB), one of the UK's largest milk
processors, announced last week that it is to increase the price it
pays farmers for their milk, with a number of major processors
likely to follow suit. But will...
Prices for a number of key food ingredients in Russia have risen in
January and February, according to a recent survey, and supply
difficulties are expected to keep costs high for the foreseeable
future, reports Angela Drujinina.
Global cheese prices rose to new highs last year and are expected
to remain firm this year, backed by strong demand in consuming
regions and stagnant output among exporting countries such as
Australia, reports Anand Krishnamoorthy.
Arla Foods UK, the UK subsidiary of Danish-Swedish dairy
co-operative Arla Foods, announced yesterday that it is to put its
milk prices on hold - a move which will appease British dairy
farmers and also temporarily heal a long-running...
Against the backdrop of soaring prices for locust bean gum, getting
the best price for the customer is a challenge hydrocolloid
producers must meet if they want to ensure ongoing contracts,
reports Lindsey Partos.
The United Nations' food agency has singled out burgeoning demand
in Asia as contributing to the overall international price increase
of dairy products, but remains confident that prices will begin to
stabilise in 2005, Tom Armitage...
Robert Wiseman Dairies announced earlier this week that it is to
provisionally slash the amount it pays for UK dairy farmers' milk,
a move which will undoubtedly lead to further price skirmishes in
the UK milk market, as Tom...
Reform of the European Union's milk policy will mean a drop in
prices for skimmed milk powder, prompting Danish dairy group Arla
to take action to counter the expected decrease.
Brazil, a leading exporter of soybeans and key competitor with the
US, is worried that rising production costs for soybeans could eat
into local farm profits next season, while global stocks rise,
according to fresh figures from the...
Rising commodity and ingredients prices continue to hit the global
food chain with US food giant Kraft the next in line to be hit by
price pressures suggesting that despite reasonable fourth quarter
figures, the soaring costs are...