International dairy prices have taken another tumble at the latest Fonterra auction, dropping to their lowest level so far this year.
International dairy prices are up 82 per cent from the lows of February, sparking speculation about another big price spike, according to the Food and Agriculture Organisation (FAO).
International dairy prices now stand in «a more comfortable range» but a spike in EU production this spring could spark another major fall, according to Rabobank.
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.
Not exact matches
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.
These risks and uncertainties include: fluctuations in U.S. and
international economies and currencies, our ability to preserve, grow and leverage our brands, potential negative effects of material breaches of our information technology systems if any were to occur, costs associated with, and the successful execution of, the company's initiatives and plans, the acceptance of the company's products by our customers, the impact of competition, coffee,
dairy and other raw material
prices and availability, the effect of legal proceedings, and other risks detailed in the company filings with the Securities and Exchange Commission, including the «Risk Factors» section of Starbucks Annual Report on Form 10 - K for the fiscal year ended September 28, 2014.
Dairy was raised $ 300 million to $ 5.9 billion on strong global
prices and growing
international demand, particularly from Asia.
«The fact is that, for some time, the
price paid to Australian
dairy farmers for milk did not reflect the reality of the
international market,» Ms Swales, who runs the country's second largest milk processor, told The Australian Financial Review this week.
He reckons
dairy farmers struggle to understand why farm gate
prices have hardly risen in the past year when the
international price for milk has almost doubled.
International milk
prices fell while volumes increased in this month's first auction held by New Zealand's Fonterra Co-operative Group, the world's biggest
dairy exporter.
Victorian
dairy co-operative Murray Goulburn said in December that due to the strong
international demand for
dairy products, it expects to pay a milk
price of between $ 6.30 and $ 6.50 per kilogram of milk solids this year.
The weakening dollar is offsetting declines in global grain
prices on the back of a strong
international crop and is a tailwind for Victoria's
dairy farmers.
Meanwhile, Mars Ice Cream is concerned about commodity
prices and plans to continue watching
international demand for
dairy inputs that carry potential to drive up costs.
The Agricultural Marketing Service provides market commentary on
dairy product
prices for a wide array of products, both domestic and
international.
Colliers
International agribusiness valuer Nick Cranna said rising cotton,
dairy and beef
prices had all driven increased appetite for these rural assets.
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.
WCB chief executive David Lord said strong
international dairy commodity
pricing and demand and the declining Australian dollar were a tailwind for earnings.
The outlook for
international dairy commodity
prices has deteriorated since the September 11 terrorist attacks.
«In the past when
prices have weakened in the
international dairy markets, the main reason usually has been pressure from supply.
The Victorian farm gate milk
price is highly sensitive to export
prices for
dairy commodities, such as powders, in the
international market.
Drought in New Zealand and continued strong buying from Russia and China are expected to keep
international dairy commodity
prices buoyant in early 2011, according to Rabobank.
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 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...
Australian
dairy farmers, who aired similar concerns about the level of payments they receive from
dairy companies, were told at a conference last week that the
price they receive for their milk is predominantly influenced by
international markets.
The average
price at recent Global
Dairy Trade auctions, considered a barometer of
international demand, have been flat.
Domestic and
international demand for
dairy produce is booming, but the
price of Australian milk has declined so far that it is now cheaper than water.
For the Victorian
dairy farmers where the farm gate
price follows the
international price, there is likely to be little if any effect from the discounting by Coles.
In another stroke of luck, New York
dairy farmers have been well - positioned in recent years because they tend to grow much of their own feed corn, putting them at a competitive advantage over their larger California competitors: West Coast
dairies are struggling with the high
price of corn brought on by
international demand, drought conditions and ethanol subsidies.
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).
And since Irish (& European)
dairy farmers haven't a bull's notion about competing in terms of actual
international milk costs &
prices, seeing nearly every
dairy farmer ploughing money into bigger herds, farms, new milking parlours, etc. was actually pretty terrifying.