The Australian Senate inquiry into the impacts of supermarket price decisions on the dairy industry has concluded that most Australian dairy farmers “will not be significantly worse off” because of supermarkets cutting the price of milk. The Senate’s Economic References Committee final report, published today, states that the vast majority of Australia’s milk production occurs in States such as Victoria where a number of processors operate and drinking milk represents a relatively small share... ...Read more »

Australia’s peak dairy farming body, Australian Dairy Farmers (ADF), has told a Senate Committee inquiry that Australian dairy farmers are being pushed out of business by supermarkets retailing milk at “unsustainable” prices. The ADF was addressing the Senate Economics References Committee Inquiry into the impacts of supermarket price decisions on the dairy industry. The inquiry met the ADF representatives on Thursday 6 October 2011. ADF President Chris Griffin said that in the last eight months,... ...Read more »

The US House of Representatives was called upon on Tuesday to reform dairy policy and pricing mechanisms to assure a viable future for the country’s dairy industry. Addressing the House, Pennsylvania Agriculture Secretary Russell Redding insisted that US dairy producers are facing “historic challenges” from falling milk prices to depressed land values. “The overall loss of cash-flow, coupled with losses in real estate values, has diminished or nearly eliminated equity on some of our... ...Read more »

Sales on Fonterra’s internet-based trading platform, globalDairyTrade, have reached $US1 billion over the 19 trading events since launch in July 2008, with the world’s biggest dairy exporter aiming to create a futures market for dairy products. The site, introduced to help Fonterra and its customers manage price exposure in the market, was criticised in its early days, but globalDairyTrade Manager Paul Grave said the criticism had now largely disappeared. “Some commentators credited... ...Read more »

After reaching a compromise agreement just prior to Christmas, most Tasmanian farmers have now signed their new contracts with processor National Foods, closing the book on a tense chapter between the supply chain partners. Tasmanian farmers were disappointed with the price offered by National Foods when negotiations over the milk price began a few months ago, arguing that it was lower than what their interstate counterparts received and below the costs of production. And, as fruitless negotiations... ...Read more »

The long-running talks between Tasmanian dairy farmers and processor National Foods finally took a turn for the better early last week after previous negotiations had continually stalled. The ongoing saga has hurt both parties, with farmers not having the surety of contracts while National Foods sales in the state have reportedly been hit by the negative publicity. And now, a couple of months after talks initially broke down and a few weeks after the deadline passed for farmers to sign the National... ...Read more »

Fonterra has seen continued strength in milk prices via their internet-based sales platform, a further sign that the dairy market is recovering. The New Zealand dairy giant concluded its globalDairyTrade December trading event this morning with the average price for Whole Milk Powder up 3.6%. The trading manager, CRA International, advised Fonterra that the average price achieved across all contracts and contract periods for Whole Milk Powder (WMP) was US$3,560 per tonne FAS. This was US$123 per... ...Read more »

Most of the suppliers of milk to National Foods in Tasmania are yet to sign agreements with the dairy firm, despite the deadline for the offer ending this afternoon. The collective bargaining group maintains that the current offer by National Foods is unfair and will see farmers unable to meet the costs of their production. However, National Foods insists that the current offer will not be raised as the market is not strong enough to support a price rise. The dairy firm wrote to their Tasmanian suppliers... ...Read more »

Australia’s largest exporter of dairy products, Murray Goulburn, has announced the third pay hike for farmers this season – the first Australian processor to make such a move on the back of significant improvement in export markets. “The improvement in the export market has been quite strong,” outgoing Chairman Ian MacAuley told the ABC. “Milk supply needs a little bit of a boost, and also, if you remember last year, there was a major drop in price, and people’s... ...Read more »

The latest globalDairyTrade event, Fonterra’s internet-based sales platform, has again provided optimism for the dairy sector, with the average price for Whole Milk Powder surging 13.7%. The trading manager, CRA International, advised Fonterra that the average price achieved across all contracts for Whole Milk Powder (WMP) was US$3,437 (A$3800) per tonne FAS, some $415 per tonne higher than the October event. Nigel Kuzemko, Director Commercial & Strategy, Fonterra Trade & Operations,... ...Read more »