Global Prices and EU Production Down10 December 2012
GLOBAL - EU butter and milk powder production is down and a strong season for New Zealand dairy farming has caused dairy commodities to drop on the trade Weighted Index for the week ending 7 December, reports Dairy Australia in their fortnightly update.
Dairy Australia has reported that year to date production of butter and SMP (skimmed milk powder) remains 2.5 per cent 1,339,000 tonnes higher over all at 1,339,000 tonnes despite a production drop in August of 5 and 4.6 per cent respectively. However annual Whole Milk Powder production is down 3.3 per cent at 481,000 on 2011 levels so far and was down 5.5 per cent in August.
Easing 2 per cent the Trade Weighted Index of the Global DairyTrade (GDT) event (#81) saw generally 'softer' commodity prices. An exception to this rule the Authority of Financial Markets (France) was changed by a rise in fat prices and tightened by 3 per cent.
A strong dairy season in New Zealand has seen commodity prices drop in August. SMP (US$3,362/t) maintained its position ahead of WMP (US$3,170/t) (down 3.5 per cent) despite Skimmed powder falling 1 per cent. associated with a strong NZ season to date.
In Australia, processor Lactalis has bought speciality cheese manufacturer Jindi from Menora foods in a deal worth AUS$20million. The Australian reported that Lactalis aims to expand the business creating jobs and opportunities at Jindi.
Also mentioned in Dairy Australia's market summary was the Australian Competition and Consumer Commission's approval of a Nestlé takeover of Pfizer Nutrition conditional on the following:
- Selling an exclusive 10-year license for Pfizer’s local infant nutrition brand portfolio to an ACCCapproved independent purchaser
- Agreeing to a further 10-year ‘blackout period’ that prohibits Nestle from marketing Pfizer’s brands
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