«Whilst in recent weeks we have seen some recovery in the market, unfortunately, the overall global
dairy commodity markets remain weaker than last year, which continues to impact on our returns.
«The increase reflects the recovery in global
dairy commodity markets, combined with the continuing strong performance of Arla's global brands, and the benefits from a series of efficiency improvements instigated in the first half of the year coming through.
With
the dairy commodity markets recovering strongly, milk buyers could in theory shift milk into commodities to improve their margins.
Lyndsay Chapman, Müller's agriculture director, said she was hopeful that
the dairy commodities market has turned a corner, leading to sustained recovery.
Not exact matches
Whether it's China's demand for imported milk products, the weather situation in New Zealand, or changes in world
dairy commodity prices, this publication keeps members abreast of the
market situation and outlook.
It's why our Spot
Market is the industry's only trading exchange for bulk
dairy commodities.
Fayrefield Foods Ltd Fayrefield Foods are an independent sales and
marketing company specialising in the supply of
commodity dairy products, premium added value ranges and healthy eating products.
Fayrefield Foods are an independent sales and
marketing company specialising in the supply of bulk
commodity dairy products, milk powders, bespoke premium added value ranges and healthy eating products in all pack sizes and supplying the Retail, Foodservice, Industrial and Trading sectors
Explaining more about the concept of
dairy futures, he added: «A processor and manufacturer are afforded the capability to hedge their
market risk, locking in a longer term price for a
commodity, be it skimmed milk powder, butter or cheese.
In its quarterly report on the
dairy market, Rabobank said key
commodities in USD prices fell 10 to 15 per cent in the first two months of the year before stabilising in the first half of March.
«The closure of butter and powder operations at Chard is in line with our strategy to increase our focus on developing our added value and branded businesses and will significantly reduce our exposure to the
commodity ingredients
market,» said
Dairy Crest Group chief executive Drummond Hall.
«Ingredients as
commodities are very volatile and unpredictable so we have been methodically moving away from those
commodity markets to more stable higher value added
dairy products,» he said.
The US
dairy sector will likely invest in additional churning capacity to meet demand from the now «proven» export
market for butter, says DairyReporter.com
commodities expert, John Geuss.
A European Commission report says the world
market for
dairy commodities and milk imports will grow 2.4 % annually up to 2025.
Dairy farmers patience has been wearing thin as market indicators for dairy commodities soar to levels not seen since the highs of
Dairy farmers patience has been wearing thin as
market indicators for
dairy commodities soar to levels not seen since the highs of
dairy commodities soar to levels not seen since the highs of 2013.
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.
The decision reflects the increasing pressure on
dairy processors to look to new
markets and higher value production to offset increasing
commodity costs.
Fonterra is launching a new online sales channel for its
dairy commodities which will allow it to respond more quickly to price changes - and may spur the development of an international
dairy futures or derivatives
market.
Fonterra has claimed that ingredients prices are recovering and
market confidence is returning as a group of US senators accuse the New Zealand - based co-op of holding a virtual monopoly of key internationally traded
dairy commodities.
Milk Link CEO Neil Kennedy says
market conditions for the next year will likely remain challenging with
dairy commodity returns «sharply down» in comparison with historical prices in the short term.
US
dairy commodity prices dropped in December 2012, but low inventories and high exports have left the
market still looking «healthy.»
While conventional
dairy processors continue to fret over increasing prices for milk powder and other ingredients, a leading US organic group believes that current conditions in the
commodities market will continue to boost industry...
The Victorian farm gate milk price is highly sensitive to export prices for
dairy commodities, such as powders, in the international
market.
Ireland's «highest ever»
dairy exports were aided by the closing price gap between world and EU
commodity markets, with full year figures forecast to reach $ 2bn, according to Teagasc.
As a
dairy producer or processor, you deal with perishable inventory, whose value changes as
commodity markets fluctuate.
Fayrefield Foods are an independent sales and
marketing company specialising in the supply of
commodity dairy products, premium added value ranges and healthy eating products.
Additional information on
dairy can be found at USDA
commodities, where links will direct you to programs and services,
market news, standards, and more.
Stronger international prices of cereals and
dairy drove global food
commodity prices up in March,
marketing the second month of a consecutive increase, according to the latest data from the UN's Food Agriculture Organization (FAO).