The milk price saga in Tasmania took another turn late last week, with National Foods announcing they will no longer work with the Collective Bargaining Group and will instead take their offer direct to farmers. “As a result of the interest expressed by a number of individuals and following a meeting … at which National Foods clarified its offer for the farmers’ Collective Bargaining Group, National Foods has decided to take its milk price offer direct to its Tasmanian dairy farmers,”... ...Read more »

Talks between National Foods and Tasmanian farmers broke down yesterday, with an end to the dispute seemingly further away than ever before. National Foods said they were ‘bitterly disappointed’ with the failure to reach an amicable agreement with the Tasmanian Suppliers Collective Bargaining Group in negotiations yesterday. The dairy and juice group said the farmers walked out on what they believed to be a good deal, while farmers maintain they are being treated with contempt. “We... ...Read more »

National Foods appears a long way from appeasing Tasmanian farmers after a price increase was not particularly well received. National Foods wrote to its Tasmanian farmers to announce a 1.1 cent per litre increase in the contract price for milk last week, a move they said was “in line with recent market movement”. However, Tasmanian farmers, who maintain that they are not getting a fair deal, have started an advertising campaign to counter the one pursued by the dairy manufacturer. The... ...Read more »

The latest trading event by Fonterra has showed the turnaround in dairy prices is gaining momentum. globalDairyTrade, Fonterra’s internet-based sales platform, concluded its October trading event this morning with average prices for Whole Milk Powder up 5.7%. Kelvin Wickham, Managing Director of Fonterra Global Trade, said it was expected prices would need to consolidate after the recent sharp rises. “We’ve seen a rebalancing in the market and we see market fundamentals supporting... ...Read more »

The beginning of a global economic recovery is having a positive impact on international dairy prices, data from a leading industry banking group has suggested. A quarterly report into the dairy industry from Rabobank has said that recent price support had come from a combination of tighter fundamentals for new production and a shift in sentiment as the market finally reached a “clear turning point”. However, it also warns there are potential hazards ahead. “Economic growth has... ...Read more »

The Senate Economics Committee is set to investigate contracts between the major supermarkets and dairy group National Foods as part of their analysis of pricing in the dairy industry. Earlier this month the Committee was asked to determine whether farmers were being hard done by in response to uproar following price cuts – largely focusing on price reductions by National Foods in Tasmania. Committee member, Tasmanian Senator Richard Colbeck, has told the ABC that the investigation will now... ...Read more »

A Senate committee is set to look into the market power of leading dairy players in Australia to determine whether farmers are being short changed. Concerns have been raised about whether Australian dairy farmers are getting a fair deal, with the issues coming to a head in Tasmania over the past couple of weeks amid allegations that National Foods are using their bargaining power in the state to force prices below fair value. The inquiry, to be carried out by the Economic Reference Committee, has... ...Read more »

The world’s largest dairy exporter continues to see signs of recovery in the dairy market following a tumultuous year during which prices plummeted. Fonterra’s internet-based sales platform, globalDairyTrade, concluded its September trading event this morning with average prices for Whole Milk Powder surging 24.2%. 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$2,858... ...Read more »

The world’s largest dairy exporter, Fonterra, has indicated that the price of milk may have reached its floor, after a major decline saw it plummet from record highs last year. The New Zealand dairy firm has also upgraded operating profit forecasts on the back of Australian acquisitions and strong demand for premium goods. Fonterra Chairman, Henry van der Heyden, said there were now tentative signs of strengthening demand and firming prices for some products in international dairy markets. “Along... ...Read more »

The Federal Minister for Agriculture, Fisheries and Forestry, Tony Burke, has told of the government’s bitter disappointment with the United States’ decision this week to extend its dairy export subsidies by another year.Mr Burke is currently in Washington for three days to promote agricultural trade. He is due to meet US Trade Representative Ron Kirk today and Secretary of Agriculture Tom Vilsack tomorrow, with the US Dairy Export Incentive Program one of the key issues on Australia’s... ...Read more »