Canada is «totally committed» to supply management, Foreign Affairs Minister Chrystia Freeland said last year, and Ottawa has given no indication that it is willing to change a system that, by design, protects the entire Canadian dairy supply chain from competition and dings consumers with some of
the highest dairy prices in the world.
Kenneth Zaslow, an analyst with BMO Capital Markets, says that the company has managed a number of other headwinds well, including
higher dairy prices and a general softness in the U.S. package goods industry.
High dairy prices meant Hershey's operating margins fell to 3.1 per cent for the quarter ended 1 July, compared to 17.3 per cent for the same period in 2006.
Not exact matches
These
high prices for cheese and other
dairy products are protected from foreign competition by tariffs of 200 % to 300 %.
And even though supply management wasn't mentioned specifically, Trump clearly wants to break down the import tariffs that allow Canada's producers of
dairy, poultry and eggs to sell at
higher prices.
The value of the quotas also spills over into
higher prices for farmland, especially whenever quota
prices are capped (
dairy quota
prices in Ontario are now fixed at $ 25,000).
Farmers operating under supply - management boards in the Canadian
dairy, chicken and other protected agricultural sectors can be expected to offer justifications for the market power that enables them to sell their wares at
prices substantially
higher than in most other countries.
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)
Particularly in the
dairy, egg, turkey, and chicken sectors, farmers rely on supply management to keep product
prices high.
The well - funded
dairy lobby spends a great deal of money (an estimated $ 80 to $ 100 million each year — ironically paid for by the
higher prices consumers pay), persuading federal and provincial politicians that supply management «protects the family farm,» «ensures food security» and that, because these farmers are so numerous, doing anything to upset them would be political suicide.
We've seen how supply management for
dairy, poultry and eggs hurts a) consumers through artificially
high prices; b) food processors (and the jobs they could be creating in Canada) because of their inability to compete internationally; c) exporters of all kinds looking for more international trade access, but which Canada is denied because of supply management; d) the majority of Canadian farmers (over 90 per cent)-- those who grow and produce beef, pork, grains, oilseeds, pulses, and who are not supply managed — who would also benefit from more international trade access; and finally e) most ironically,
dairy farmers themselves, also prevented from exploiting international growth opportunities.
U.S. food -
price inflation may top the government's forecast as
higher crop, meat,
dairy and energy costs lead companies including Nestle SA, McDonald's Corp. and Whole Foods Market Inc. to boost
prices.
Just over half of all Canadians (56 %) perceive that paying a
higher price for
dairy and poultry products is a reasonable trade - off for protecting the
dairy and poultry industries.
Operational efficiencies and selling
price increases have allowed
Dairy Crest to broadly offset
higher input costs during its first half trading period ending September 30th 2011.
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.
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.
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.
Global
dairy prices may have recovered over the past year but that does not mean that
dairy producers and processors in the UK are creaming off
high profits.
But the New Zealand
dairy giant's chief executive Theo Spierings, said this was too
high and did not reflect a collapse of global
prices for key
dairy commodities.
«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.»
Prices have swung from record lows to record
highs,» said Michael Harvey, industry analyst at
Dairy Australia, which promotes the interests of the sector.
The FAO food
price index rose in August to its
highest point since May 2015, as increases in
dairy, oils and sugar offset weak cereal
prices.
Major
dairying and juice communities, including those in in Bega, Wagga Wagga, Bathurst, Dubbo, Tamworth and Murrumbidgee are also expected to be affected by falling demand, caused by
higher prices at the checkout and should not be threatened by another green tax adding unnecessary cost to their products.
The mission of federal milk orders is not to provide
dairy producers with the
highest price possible.
This could be nasty news for American
dairy farmers: The
high supply has already resulted in low
prices, and with renewed competition from the EU, things could get ugly.
Demand for cheese in this country is steadily rising, but the
high stockpiles and low
prices could make it especially hard for the US to export its own
dairy products, a $ 5.2 billion per year industry.
Dairy prices are expected to largely track sideways before drifting
higher later in the year, ASB senior rural economist Nathan Penny says.
This optimism was borne out in a recent survey of Australian farmers by rural lender Rabobank, which found positive sentiment in the sheep and beef sectors, «as graziers fetch historically
high prices for lamb, mutton, wool and beef» along with improving sentiment in
dairy and with cotton producers «increasingly upbeat».
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...
The impact of the slide in
dairy prices at the latest global
dairy auction could have been worse if the value of the New Zealand dollar was
higher, Federated Farmers says.
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.
A year after hitting an all - time
high,
prices are down to near break - even levels, according to Larry Tranel, a Dubuque - based farmer and
dairy specialist with Iowa State University who serves as an industry liaison in eastern Iowa.
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.
IN SPITE of the current
high butter
prices, European
dairy farmers insist that their sector remains in a chronic poor state because the Common Agricultural Policy lacks a mechanism to prevent damaging market breakdowns.
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 fami
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 fami
dairy farm families.
Dairy Australia industry analyst John Droppert said the stable domestic market and a more favorable exchange rate were helping buffer the impact of declining world
prices,
high input costs and the dry season.
«We have lifted profitability from last season to this season, resulting in
higher earnings per share to help offset low global
dairy prices.»
Slowing economic growth in New Zealand's top export market, China, and a global oversupply of milk products have seen
dairy prices plummet after reaching record
highs in 2013.
Also the milk
price received by many
dairy farmers is not as
high as winter when peak milk
prices are often paid to drive winter production.
After reaching an all time
high in September 2014 US butter
prices are now «dropping like a rock,» says DairyReporter.com's US
dairy commodities expert, John Geuss.
US
dairy producer are receiving record
high prices for their milk.
In a statement this week the authority said that as a result of the settlement the two companies»
dairies «both gave undertakings in the
High Court last Friday - 25 July - that they would comply with the terms of the Competition Act 2002 and not enter into any agreement, or engage in any concerted practice, to fix the retail
price of liquid milk».
Robert Wiseman
Dairies has been able to juggle suppliers,
pricing and
higher input costs in the first half of this year, while increasing margins, according to a trading statement released today.
Higher milk
prices along with lower feed costs and land values are proving a factor in rising demand for
dairy assets.
A spokesman for the trade body Gelatine Manufacturers of Europe (GME) told DairyReporter.com that EU law prevented him from commenting on supposedly
high gelatin
prices for
dairy producers.
Dairy product
prices bumped
higher again at the latest Global
Dairy Trade (GDT) auction in the wake of cyclones Cook and Debbie.
Profits have tumbled since 2011 as the company battled a
high Australian dollar, lower international
dairy prices and met fierce local competition as rival Murray Goulburn aggressively chased milk supply.
The majority of internationally traded commodity
dairy products traded in the latest Fonterra Global Dairy Trade auction event sold for higher prices, arresting a series of price slides dating back to Decemb
dairy products traded in the latest Fonterra Global
Dairy Trade auction event sold for higher prices, arresting a series of price slides dating back to Decemb
Dairy Trade auction event sold for
higher prices, arresting a series of
price slides dating back to December 6.
US
dairy commodity
prices dropped in December 2012, but low inventories and
high exports have left the market still looking «healthy.»