Global Economy
Global dairy demand will absorb rising milk production.
The FAO’s dairy price index rose to the highest level since November 2007, largely on Chinese demand for milk powder.
Danone, the world’s biggest yogurt maker, canceled its supply contract with New Zealand’s Fonterra and is seeking compensation for last year’s product recall over a contamination scare.
The deal will help Lactalis reduce its reliance on Europe, where it gets 60 percent of its revenue.
More than 200,000 metric tonnes of dairy products, destined for delivery across Brazil, are expected to pass through the distribution center per year.
China’s vigorous buying has left the buy-side of the international market with less supply to go round, keeping the market tight.
Saputo Inc., Canada’s biggest milk processor, raised its bid for Warrnambool Cheese & Butter Factory Co. to A$537 million ($480 million), after a ruling from Australia’s takeover regulator.
For the past 10 years, U.S. dairy shipments to overseas markets have grown 20% a year in value.
The three-way contest for Australia’s Warrnambool has more than doubled the target’s market value in the two months since Bega, its largest shareholder, made an initial offer.
New Zealand dairy giant acquires the assets of Tasmanian yogurt business, Tamar Valley Dairy.
Dairy processors say the state is competing to seize global opportunities.
The contest for dairy manufacturing capacity continues as bidders attempt to raise production and add export infrastructure amid rising demand in Asia.
Canada’s Saputo seeks to tap growing demand in China with purchase of Australian cheese and butter plant.
The $72 million investment in New Zealand plant will add capacity to meet growing international demand, primarily in global fast food restaurant chains.
Analyst says “anything is possible” after Australia’s biggest milk processor outbids Saputo for cheese and butter factory.
Poised to break the 10,000-metric-ton mark in 2013, South America is a different animal than China or Southeast Asia.
Fonterra: “China is so strong in buying whole milk powder, because there are issues of foot and mouth disease in the Chinese herd.”
Spierings: Higher prices not only push customers toward other milk products but also make substitutes such as soy or vegetable oil more attractive.
New Zealand’s milk production rebounds, accelerating shipments from the largest exporter just as U.S. supply expands to an all-time high.
Lower corn prices and strong international dairy demand are expected to strengthen the outlook for U.S. dairies.
The New Zealand-based dairy cooperative will build a second,15,000-cow dairy hub in the Asian nation.
The dairy price index gained 1.2% last month.
Whole milk auction prices have surged 58% since the start of the year.
The New Zealand dairy giant announces findings of its operational review involving last month’s botulism scare.
The Fonterra-owned plant will export its milk powder to more than 20 markets worldwide, including the Middle East, China and Southeast Asia.
Dairy economist says the market isn’t reflecting all the industry’s bullish fundamentals.
The company closed its office and local plants and asked its 755 local workers to stay at home.
The world’s largest dairy exporter says the product met New Zealand standards but not Chinese specifications.
CEO Theo Spierings will assume interim responsibility for the day-to-day operations of Romano’s division.
Fonterra chairman also announces independent review of manufacturing performance of company’s affected whey protein concentrate.