Australia’s competition watchdog has reportedly called for the investigation into milk pricing to be widened to include the country’s biggest milk processors as well as retailers.The news comes in the midst of a Senate inquiry into the Australian dairy sector and follows claims from farming representatives that “government inaction” has permitted the country’s largest supermarkets – Coles and Woolworths Ltd – to abuse their market power. However, according... ...Read more »

Consumer advocacy group CHOICE says implications of the supermarkets’ milk pricing battle should be seen in the wider frame of competition issues in the grocery sector and the need for a National Food Policy, and has called for a national food policy and supermarket ombudsman to be established. The consumer group, in a submission to the Senate Economics Committee Inquiry into the milk discount issue, said discounted prices in the short-term may have negative consequences further down the track. CHOICE... ...Read more »

Both of Australia’s major supermarket chains, Coles and Woolworths, have slashed prices on their own-brand milk offerings, in a move which they claim will not affect farmgate prices for their milk suppliers, but which has nevertheless caused consternation throughout the dairy industry. Coles led the move when it reduced the price of a 2 litre bottle of own-brand milk by 47c to just $2 – which was immediately matched by its competitor, Woolworth’s – in a ‘loss leader’... ...Read more »

New Zealand dairy giant Fonterra has reported a fall in milk-powder prices in its latest internet auction as concerns over supplies started to ease. The price of skim milk powder fell 11.8%, while the price of whole milk powder dropped 14.8% in the latest globalDairyTrade auction. The price of anhydrous milk fat fell 14.1%. Paul Grave, globalDairyTrade manager, said the results reflected an increase in global supplies in response to “a very strong price signal” over recent months. Concerns... ...Read more »

A Senate report on competition and pricing in the Australian dairy industry has slammed the results of a deregulated dairy industry, with dominance by the two major supermarket chains and a handful of mostly foreign-owned processors placing farmers at a competitive disadvantage. The inquiry investigated the varying prices being paid to dairy farmers in different Australian states, particularly focussing on the impact of consolidation that has occurred within the dairy supply chain since deregulation... ...Read more »

World dairy product prices are forecast to remain relatively firm in 2010-11 after rebounding from the low prices experienced in mid-2009, delegates were told at the ABARE annual Outlook conference in Canberra yesterday. John Hogan, Manager of ABARE’s Agricultural Commodity Analysis, said as world economic recovery strengthens and demand for dairy products picks up, world dairy prices are projected to remain relatively high although they will be below the peak of 2007-08. “This is expected... ...Read more »

Global markets for milk and dairy products are expected to grow, according to a report by the Australian Bureau of Agricultural and Resource Economics. Increases in worldwide consumption of milk and dairy products, particularly in developing markets, are expected to buoy the global dairy market over the next few years.  While 2010-11 price increases are expected to be minimal, recovering markets around the world are expected to rise in 2013-14.  Australia’s dairy volumes are projected to... ...Read more »

Global dairy giant Fonterra has seen the average price for Whole Milk Powder drop 1.6% via its monthly internet-based sales platform globalDairyTrade – the second consecutive monthly decline after five months of consistent growth. The dairy market remains much stronger than it was this time last year, however. The trading manager, CRA International, advised that the average price achieved across all contracts and contract periods for Whole Milk Powder (WMP) was US$3,256 per tonne FAS. Prices... ...Read more »

An amicable deal has been struck between Tasmanian farmers and dairy processor National Foods today, concluding a long-running saga that had become bitter on occasions. Farmers had – until today – continued to back away from the price offered by National Foods, arguing farmers were paid more in other states and the offer price would not meet their costs of production. However, National Foods held firm arguing their proposed milk price was the best they could do without undermining the... ...Read more »

Fonterra this week announced an increase in their payout to farmers of 55 cents to $5.10 per kg of milksolids as dairy markets begin to show signs of life after a horrendous year. It was only around a year ago that dairy prices were at their peak after a sustained rise, but the global financial crisis led to a significant crash as demand fell. Fonterra CEO, Andrew Ferrier, said the strong increases in prices for whole milk powder (WMP) at the globalDairyTrade events in the past two months echo a... ...Read more »