Centenary/Thurles holds top spot in Sept/Oct liquid milk league

Centenary/Thurles topped the September/October liquid milk league with a 12-month rolling average of 39.09c/l. Monaghan’s price of 38.92c/l is not far behind in second place, with Aurivo completing the first division, paying 37.06c/l.

Arrabawn’s rolling average price of 37.02c/l has kept it on top of the second division ahead of Wexford. Clona completes division two with a price of 36.07c/l.

Glanbia and Dairygold remain in the third division, with a rolling average milk price of 35.89c/l.

US milk powder rises to six-year high

Prices for non-fat dry milk averaged $1.9363/lb ($4,259/tonne) for the week ended 7 December. This is the highest price for this product since 2007 according to a USDA (US Dept Ag) report. NFDM (non-fat dry milk) price rose by 27% this year. Domestic exporters shipped a record 464,989 tonnes of NFDM between January and October this year.

Global dairy prices tracked by the UN jumped 22% this year compared with a 3.6% drop in overall food costs.

The main reason for the higher prices is the strong export market, especially to the fast developing Asian countries. China, the largest buyer of WMP (whole milk powder), will have a milk shortage for at least three years as smaller herds ceased producing milk following the implementation of new regulations for both producers and processors.

US exports predicted to rise by 30% this year

If current trends continue in the US until the end of 2013, its dairy exports for the year will increase by almost 30% to US $6.6bn. In the period from January to October, the US dairy industry exported 15.6% of its total production. This is up from 13.5% for the same period in 2012 and up from 2% in 2002.

According to information released by the USDEC (US Dairy Export Council), export figures for October were even higher at 16.3% of total US milk production exported on a total solids basis. In October, US dairy exporters shipped volumes of 163,785 tonnes of milk powder, cheese, butterfat, whey and lactose.

US cheese production has increased by almost 50% since 2000.

Elsewhere, in New Zealand, Fonterra said it cannot increase milk powder production fast enough to meet soaring demand from China and other emerging economies. The gains in consumption are ‘an extraordinary situation’, according to John Wilson, chairman of the Auckland-based company in a statement.

Chobani sales up by 32% this year

Chobani, the Greek yogurt manufacturer, has increased production at its new factory in Twin Falls, Idaho. This is the largest yogurt plant in the world and it is churning out one million cases per week less than a year after its launch.

The company also has a plant in upstate New York which will remain its key manufacturing and distribution hub for the east coast of the US.

Hamdi Ulukaya, founder and CEO, said: “Sales of our Greek yogurt have increased by 32% in the year to date. Our Twin Falls facility is ready to take on the increased production to help us meet the remarkable growth we are experiencing.’’

Chobani has continued to stay ahead of the opposition by adding to its range in the US with the launch of a 100-calorie Greek yogurt. The company, which leads the Greek category in the US, is coming under pressure from Danone and General Mills. It recently announced the introduction of Chobani Simply 100.

The company claims that the product is the first and only 100-calorie authentic strained yogurt made with only natural ingredients.

Chobani Simply 100 is available in six flavours. It comes in 5.3oz single serve cups and four-count multipacks, plus a 32oz cup in vanilla. The yogurt has a retail price of $1.29 per cup and will be available nationwide from this month.

Chobani has stepped up its promotions recently and will advertise at the most sought after advertising opportunity in the US, which is the Superbowl next February in order to boost its brand.

Milk prices in the EU continued to increase in October. Average milk price paid for milk in that month’s league was 38.37c/l when adjusted to 3.3% protein and 3.6% fat according to the LTO (see league table).

The highest milk price in the EU was paid by Finnish Co-op Hameenlinnan Osuusmeijeri, followed by Granolo North from northern Italy. Emmi AG, a Swiss cheesemaker, paid a whopping 54.44c/l, but they are not fully integrated in the LTO league yet.

FrieslandCampina paid a 41.05c/l when adjusted to 3.3% protein and 3.6% fat.

Fonterra to build another drier

Irish farmers who are worried about our 50% increase in milk production and how the extra product can be sold on the world market should look at what is happening in the US and NZ. Our 50% increase in production will be 2.5 million tonnes over five years, whereas every 1% increase in the US or 5% in NZ will add almost one million tonnes each.

Since 1984, milk production increased by 30 million tonnes in the US and by 13 million tonnes in NZ.

Fonterra announced plans to invest NZ $235m in a new high efficiency milk powder plant at its Patiatua site in Manawtu, in the southern area of the North Island.

The new drier will have the capacity to process 2.4 million litres per day. The first milk powder from the new drier is expected to roll out in September 2015.

The investment in milk powder driers is to meet the growing demand for dairy nutrition globally and demonstrates Fonterra’s strategy of optimising its New Zealand milk business.

Fonterra has made this announcement less than a week after it opened the world’s largest milk powder drier at its newly completed site at Darfield in NZ South Island. This drier has the capacity to process 4.5 million litres of milk per day, or 30.8 tonnes per hour.