High milk prices to continue In a report released last month, Frost & Sullivan said that food commodity and food ingredient prices are «definitely» set to remain at a high level for the next two to three years.
An expected increase in global dairy production is unlikely to alleviate current industry concerns over
high milk prices, according to findings by the US Department of Agriculture (USDA).
Dunkin' previously cut its outlook for the year in July, due to increased competition from fast - food rivals and the negative impact of
high milk prices on Baskin - Robbins profits.
Prices: There is evidence Canadians pay
the highest milk prices in the world.
Gerald Quain said that the overwhelming body of data right throughout the EU and further afield both indicated and supported
a higher milk price of 33c / L and the decision of both Co-ops to pay a full cent less was profoundly disappointing and in defiance of all the market indicators.
We have
a high milk price but we also have high input costs.»
For Danone, which last month unveiled plans for $ 1bn of cost cuts by 2020 to address a squeeze from
higher milk prices and «volatile» economic conditions, the WhiteWave acquisition — its largest in a decade — will help it tap into consumer demands for healthier eating.
New Zealand's dairy sector debt nearly tripled over the past decade to $ 30.5 billion in 2012 and some farmers will have difficulty servicing their loans in the year ahead, despite the prospect of
a higher milk price, the Ministry for Primary Industries said.
«Farmers don't want their co-op to go out and pay
a high milk price that is not sustainable.
Higher milk prices along with lower feed costs and land values are proving a factor in rising demand for dairy assets.
The boost in earnings is likely to translate into
higher milk price payments to WCB's dairy farmer suppliers.
«Fonterra can comfortably pursue both [
higher milk prices and shareholder returns] because its milk price is rules - based and subject to oversight by a panel chaired by an independent director of Fonterra [and with a majority of its members being independent] coupled with oversight by NZ's competition regulator through a very public process,» he said.
The dairy industry will be particularly hit this year as
the higher milk prices that buffered losses last year have dropped.
Not exact matches
According to recent estimates from the OECD, the artificially
high agricultural
prices in Canada transfer $ 3.5 billion from consumers to producers annually — nearly $ 3 billion from
milk alone.
It doesn't seem like much, but a succession of such increases over the past four decades has given Canada some of the
highest prices in the world for cheese, yogurt and other products made from industrial
milk.
Higher butter
prices are not necessarily a good thing for the margins of fluid
milk processors such as Dallas - based Dean Foods.
prices for
milk and other dairy products in Canada are among the
highest in the world (incentives to control costs are weak when
prices are indexed to costs)
The consequent improved irrigation reduced calves» death rate 75 %, increased
milk production 50-fold, and allowed Nestle to pay
higher prices to farmers than those set by the government.
Trade barriers: Tariffs of up to 300 per cent prevent imports of
milk - based products into Canada, forcing Canadians to pay
high prices for domestic and imported cheeses and other products.
«The key to the UK is that the cheese market remains solid and while the powders [
prices] are
high, that all tends to restrict
milk going into cheese.
The increasing popularity of
high -
priced yoghurt in China has become a saviour for the country's biggest dairies, with revenues of the fermented dairy product set to overtake
milk sales for the first time.
For example, an own
price elasticity of − 0.9 for sugar sweetened drinks indicates that a 10 % increase in the
price results in a 9 % lower consumption of such drinks, whereas a cross
price elasticity of 0.2 between sugar sweetened drinks and
milk indicates that a 10 %
higher price of sugar sweetened drinks leads to
milk consumption being
higher by 2 %, implying that
milk is a substitute for sugar sweetened drinks.
With stricter pasture rules raising costs in the organic dairy sector,
higher producer
prices for organic
milk are likely needed to attract more dairy farmers into this sector.
Expanding
milk demand, along with recent drought conditions and
high organic feed grain
prices, especially in California, are also playing roles in the current shortages.
The March producer
milk price announcements continued the recent string of new record
high prices.
Drinking
milk (Class I)
pricing is based on the
higher of these two.
Australian Beverages Council CEO Geoff Parker said, «
Milk and juice producers are also expected to be affected by falling demand, caused by
higher prices at the checkout.
As of April 7, this market indicates a new record
high for April of $ 23.93 per cwt for Class III
milk and a lower but still excellent Class IV
price of $ 23.46 per cwt.
Murray Goulburn, quite fairly to my mind, argues that this merger is all about export rather than domestic markets and that the regulator misunderstands the co-op's basic driver, which is to pay dairy farmers the
highest possible
milk price.
With
high feed
prices and lower
milk prices, the next few months look financially difficult.
«Currently the
milk powder
prices are at a very
high level which explains on the one hand why customers are willing to invest into new plants and process lines.
«The market share loss didn't come as a major surprise given competitors are offering
higher farmgate
milk prices,» one analyst said.
In June Murray Goulburn lifted its initial
milk pricing offered to farmers after rivals offered them
higher prices.
The perceived health benefits have enabled it to position itself at a
higher premium than the
price of regular
milk.
Mr Helou said investors will receive a
higher dividend when the
milk price rises and a lower dividend when the
milk price falls, matching their interests.
For Murray Goulburn shareholders, a quick sale would be ideal given it is battling trust issues with farmers and is yet to stabilise its
milk intake as farmers continue to defect to rivals offering
higher farmgate
prices.
«The acquisition of the Caboolture brand forms part of our strategy to diversify our portfolio to
higher - value dairy foods, with the goal of providing sustainably
higher farmgate [
milk]
prices to MG suppliers.»
They are selling
milk at the
highest prices on record, up 17 % in January on the previous year.
Higher sales of milk - based beverages, yoghurt and specialty cheeses offset higher raw material prices arising from a shortage of Australian or
Higher sales of
milk - based beverages, yoghurt and specialty cheeses offset
higher raw material prices arising from a shortage of Australian or
higher raw material
prices arising from a shortage of Australian oranges.
The mission of federal
milk orders is not to provide dairy producers with the
highest price possible.
Global Dairy Trade (GDT) says it has found the
prices achieved for Skim
Milk Powder Ultra
High Temperature (SMP UHT) in Trading Event 207 reflected multiple bidders» strong needs to secure
higher quantities of product than were offered in the Trading...
Although the increase in US
milk production has been slightly lowered for 2017, production for 2018 is forecast
higher, based on stronger
milk prices and moderate feed
prices.
Sales for the first 6 months of 2010 declined by 9 % to LTL273.4 m (Eur79.2 m) as
high raw
milk prices and soft export markets -LSB-...]
Until feeding cows grass becomes more mainstream again, however, you can bet your sweet bippy that you will be paying a
high price for this
milk.
It pointed out that because of
higher Skim
Milk Powder (SMP) volume Tatura
Milk increased production and SMP sales in 1H FY2016, however with depressed selling
prices generating negative returns.
Improving farmgate
milk prices are likely to encourage farmers to expand their dairy cattle herds over the next five years, due to the prospects of
higher returns per cow.
In 2014, the
price farmers received for
milk reached a record
high with an average of $ 23.53 per hundred pounds of
milk.
Washington — The US Department of Agriculture (USDA), in its monthly supply - demand estimates released Wednesday, predicted that
milk production, cheese and
milk prices would all be
higher in 2018 than in 2017.
Despite demand for dairy remaining strong, particularly in China and other parts of Asia and Latin America, Fonterra said strong production in Europe and continued
high levels of EU intervention and stockpiles of skim
milk powder has lowered
prices.
VISALIA, Calif. — The findings of a five - month long study commissioned by California Dairies, Inc. (CDI), Dairy Farmers of America, Inc. (DFA), and Land O & rsquo; Lakes, Inc. (LOL) indicate that a properly written federal
milk marketing order for California would provide a regulatory structure that would potentially result in
higher farm gate
prices, which would benefit California dairy farm families.