The economic effects of the Covid-19 outbreak drove the Argentine economy further into recession, affecting demand trends. Though GDP growth has resumed after three years of recession, fluid milk consumption is now projected to drop sharply as the buying power of ordinary Argentines erodes through lack of income due to job losses, exhaustion of savings, and high inflation decreasing their purchasing power. The Argentine government has attempted to support continued consumption through a variety of measures, including by fixing prices of a wide range of products, including certain dairy products, in an effort to restrain inflation for staple food products. While the Argentine peso continues to lose value in the parallel market and has surpassed $200 per dollar, the official exchange rate remains artificially strong at $106 pesos per dollar, resulting in economic distortions affecting the relative values of imported inputs and exported products.

This scenario is not very different from the one in the 2020/21 financial year, when the economic results of the dairy farms were not bad, but much worse than in the previous years. While domestic consumption is not be expected to quickly recover, exports are in a position to remove the threat of highs stocks in the domestic market, especially in a world in which the other main exporting countries are unable to increase their milk production sufficiently to meet continued firm global demand.

According to the Observatorio de la Cadena Lactea (OCLA – Dairy Supply Chain Observer) data, the domestic market is the destination for 74.7% of the national milk production and the rest, 25.3%, to exports. Of what is destined for domestic consumption, most is marketed through the retail channel (96%), while the rest is sold to industrial buyers and is marketed through industrial and institutional channels (2% each).

The FAS is adjusting the calendar year 2021 consumption numbers from USDA’s figures of 1,825 million tons to 1,710 MT and maintains the same estimate for consumption of 2020. Argentine domestic demand fell in 25.1% 2021 due to a contraction in GDP, and it does not anticipate any recovery during 2022.

Covid-19 quarantine-related closure of many restaurants in the greater Buenos Aires area that dramatically reduced demand for mozzarella cheese, are beginning to recover as these restaurants have reopened.

Dairy exports

Total exports for 2021 are estimated at 313 MT, almost 11% higher than 2020.

According to contacts, though exports in 2021 are higher than those of 2020, they show a strong monthly oscillation due to several factors. They started very high in January due to the Brazilian production problems in December 2020, which accumulated in January, then normalised in February, and grew strongly again in March due to the improvement of prices. From then on the industry faced some logistical problems, both internal (difficulties in ports and administrative challenges) and external (availability of containers/ships) that delay exports and produce low months and high months.

The main export product for Argentina is whole milk powder. In a context of an estimated 4% production growth, with a sharp drop in domestic demand and an international market in demand with very firm prices, it is logical that the main destination for growth should be this product for export. Approximately 38.2% of the volume exported in 2021 for the first 10 months was in the form of WMP. Post estimates total exports of this product for 2021 at 142 MT. Algeria accounted for 73.4% of the total volume exported, followed by Brazil. Williner is the company that exported 16.2% of the total for this period, followed by NOAL with 14.2%, and Mastellone Hnos. with 10.6%. The average export price in October was US$3,530 per ton.

The post Overview of Argentina’s dairy industry appeared first on Dairy Industries International.

Current market trends see a high demand in prebiotic chicory root fibre due to the versatile benefits it offers in product development. Over the past four years, the number of new product launches containing chicory root fibre inulin has grown by 50% globally^[i], with the market expected to reach USD$11.48 billion in 2028^[ii]. Beneo’s latest investment will allow for continued fulfillment of market needs within the food and feed industry, while demonstrating the company’s commitment to growing its chicory root fibre business.

Christoph Boettger, member of the Executive Board at Beneo comments: “Beneo’s chicory root fibres meet key consumer needs of today and we are convinced that they will continue to play a central role in healthy nutrition in the future. With increased capacity, Beneo continues to offer a secure supply to its customers and partners worldwide.”

The chicory root fibres inulin and oligofructose are the only plant-based prebiotics. According to the International Scientific Association for Pro- and Prebiotics (ISAPP), they belong to the very few proven prebiotics. The use of chicory root fibres in product development allows manufacturers to respond to leading consumer trends such as digestive health and immunity, inner well-being, weight management, blood sugar management and bone health.

With two production sites in both the Northern and Southern hemispheres Beneo provides flexibility to customers, ensuring secure supply of prebiotic chicory root fibre around the world.

Boettger continues: “As announced previously, in summer 2022 a second refinery line in Pemuco will already increase the production capacity significantly. But we won’t stop there. The recent investment decision will ensure that Beneo’s production capacity is further growing. On top of this capacity increase, CO2 emissions are being reduced. This means that the production site in Pemuco will be carbon neutral in a few years. Additionally, the site in Oreye will have reduced the specific energy consumption per tonne of product by more than 50% by 2030.”

Such an achievement is only possible because Beneo can ensure that sustainability resonates in everything it does, with the highest level of energy efficiency being applied to the factory developments. These efforts are contributing to the company’s goal of being carbon neutral in 2045.

As well as contributing to Beneo’s carbon neutral ambitions, the investment will create a number of job opportunities as a result of expanded production facilities. At the Pemuco plant for example an increase of approximately 15% in employees is foreseen over the next few years.

The post Beneo announces multi-million investment in capacity extension for prebiotic chicory root fibre appeared first on Dairy Industries International.

To submit a news item for inclusion, please contact Suzanne Christiansen at suzanne@bellpublishing.com or Alex Rivers at arivers@bellpublishing.com.

• Arla Foods Ingredients is launching a dry-blend version of its leading MFGM ingredient for the global infant formula market.
• According to Glabnia Nutritionals, brands looking to expand their portfolio to address consumer demand can effectively do so with health beneficial and science backed solutions such as bioactive ingredients.
• Olam Food Ingredients (OFI) has confirmed plans to develop a new dairy processing facility in the North Island town of Tokoroa, New Zealand.
• CP Kelco, a global leader of nature-based ingredient solutions, has announced it will invest more than $50 million to expand production capacity for NUTRAVATM Citrus Fiber.

The post Roundup: Ingredients appeared first on Dairy Industries International.

The post CP Kelco invests more than $50 million in Citrus Fiber capacity expansion appeared first on Dairy Industries International.

To submit a news item for inclusion, please contact Suzanne Christiansen at suzanne@bellpublishing.com or Alex Rivers at arivers@bellpublishing.com.

• Chr Hansen has reached a settlement with Glycom of several patent disputes, including litigations in Denmark, relating to the production of Human Milk Oligosaccharides (HMOs).
• Glanbia Nutritionals has announced its new director of premix, Michael Hofstätter, who will lead the development and implementation of premix and functionally optimised nutrient strategies for the company in EMEA. 
• A major global survey by BC30, part of Kerry’s ProActive Health portfolio, has shown a rise in consumer demand for probiotics, linked to digestive health.
• Arla Foods Ingredients has launched a new whey protein ingredient to help meet the growing demand for high-protein yogurts with health credentials and a premium positioning.

The post Roundup: Ingredients appeared first on Dairy Industries International.

Nutrilac FO-7875 allows manufacturers to develop yogurts (both spoonable and drinkable) with significantly higher protein content than typical products, which generally range from 5% to 9%. For example, it can be used to create a drinking yogurt with 11% protein and only 0.8% fat.

As well as enhancing health credentials, Nutrilac FO-7875 is highly functional. It delivers a creamier and smoother texture, even in low-fat recipes, and does not increase viscosity. Furthermore, it does not require the addition of stabilizers, thus allowing cleaner labels.

Nutrilac FO-7875 was developed in response to growing demand for high-protein yogurt products, the global market for which has been forecast to grow at a CAGR of over 8% to 2030.¹ Produced in Argentina, its arrival is particularly good news for South American producers, who will benefit from proximity and greater purchase flexibility.

Ignacio Estevez, application manager, South America at Arla Foods Ingredients, said: “Nutrilac FO-7875 meets a range of market needs. It can be used to create clean-label yogurts that are not only rich in high-quality protein, but also low in fat, as well as smooth and creamy. This combination of benefits will allow even more manufacturers to expand their lines to include premium products that enhance brand image. We’re particularly excited about the unprecedented opportunities it offers in South American markets, where manufacturers will benefit from reduced transit time and no import fees.”

¹Future Market Insights, July 2020

The post New ingredient meets demand for high-protein, clean-label yogurts appeared first on Dairy Industries International.

For 2021, the production projection continues to be 11,575,000 metric tons of fluid milk, an increase of 130,000 tons or 1.1% above the revised 2020 production, which is now estimated at 11,445,000 tons, or 95,000 tons above USDA official.

These flat prices have driven Argentine dairy margins into negative territory since September 2020 as feed prices have risen. Relatively mild weather and flat prices have incentivised farmers to produce more milk in an effort to generate revenue. Fluid milk production in the first few months of 2021 is surpassing 2020, which had the highest level since 2015. However, a reduction in the herd size since that time means that Argentina is unlikely to reach those all-time highs until the herd can be further rebuilt.

The current negative margins, especially for smaller producers, have led to continued protest by local dairy organisations that demand that current price controls be updated or abandoned. Price controls were recently extended until mid-June, but several dairy products were removed from the price control list, including: infant formula, grated cheese, cream cheese, dulce de leche, butter and margarine, yogurt, desserts and puddings.

According to industry contacts, leading dairy processors are in negotiations with the government to establish minimum production levels for a variety of dairy products. The government’s goal is to guarantee sufficient domestic supply to help contain food price inflation. An agreement could shield the dairy industry from export controls which the government has threatened or implemented in other agricultural sectors

The government is also implementing a new law intended to increase the diversity of food products on supermarket shelves by requiring a certain percentage of shelf space be devoted to products produced by small and mid-size businesses, and limiting how much space can be assigned to products from a single company.

The effects of this law, which is beginning to be implemented in May 2021, are uncertain, but it could lead some small dairy processors to devote more production to the formal market. In the short run, supermarket chains are scrambling to diversify their suppliers to comply with the new law.

With mostly fixed domestic prices, trade continues to be important to the financial health of the dairy industry. According to a study by OCLA, a dairy industry organisation, 25.3% of Argentine dairy production went into export channels. The top five destinations for Argentine dairy products are Brazil, Algeria, Russia, Chile, and China.

The post Argentine dairy under duress appeared first on Dairy Industries International.

In order to ensure sustainable success, Emmi strengthened its systematic cost management last year and at the same time made targeted, value-creating investments in order to strengthen its innovation and growth plans in the long term. These include, for example, the construction of a new cheese dairy in Emmen and the construction of a production facility in Brazil.

Consistent development on the Emmi company portfolio is also an investment in the future, the company says. The acquisition of the US Indulge Desserts not only gives Emmi its own presence in the world’s largest dessert market, but also additional sales opportunities and economies of scale for the global dessert business. On the other hand, the majority stake in Lácteos Caprinos was sold in order to be able to concentrate the resources on high-growth and high-margin companies.

The company’s own targets for 2020 for both EBIT (CHF256.6 million) and the net profit margin (5.1%) were achieved or even slightly exceeded after adjusting for the aforementioned special effect.

The coronavirus-related uncertainties, concerns about economic development in the markets that are important to Emmi and the ongoing price pressure on dairy products in the home market are shaping the outlook for the current year.

The forecasts for Emmi’s business development in the current year are based on the assumption that the situation in the markets relevant to Emmi will stabilise from the second quarter of 2021, but that a return to normality will not return until 2022. Under these circumstances, the organic sales development at group level should experience a similar dynamic in 2021 as in the past year (1% to 2%).

However, depending on the duration of the crisis and certainly up to the first half of the year, high fluctuations in sales are to be expected.

Emmi expects the home market in Switzerland to weaken. The sustained import and price pressure for dairy products in connection with an expected gradual return to earlier consumption patterns is likely to be reflected in a negative sales development of 1% to 2%.

In the Europe division comparable reasons are likely to lead to a slowdown in sales growth (1% to 3%).

The recovery in the Americas division, which was badly affected by the COVID crisis, is likely to accelerate and the division will thus become a growth driver again (4% to 6%).

Continuity can also be expected in the EBIT development (CHF275 million to 290 million) and the net profit margin (5.2% to 5.7%).

The post Emmi reports record sales in 2020 appeared first on Dairy Industries International.

To submit a news item for inclusion, please contact Suzanne Christiansen at suzanne@bellpublishing.com or Alex Rivers at arivers@bellpublishing.com.

• Researchers at University of Hohenheim in Germany have been investigating how to prevent dairy products with high calcium content, such as quark or skyr, from developing a bitter taste.
• Arla Foods Ingredients is demonstrating how its organic dairy proteins can help meet emerging opportunities for premium kids’ snacks in China with two new concept launches.
• Fonterra’s dairy ingredients and solutions brand NZMP has launched a new carbonzero certified Organic Butter to the North American market.
• Tate & Lyle has launched its new Nutrition Centre, which aims to increase awareness of evidence-based science for ingredients.

The post Roundup: Ingredients appeared first on Dairy Industries International.

Rabobank forecasts a 1.1% increase in milk production across the Big-7 dairy-producing regions in 2021. This is a decrease compared to the 1.6% year-on-year increase in 2020 and represents a modest tightening of supply, which should help support markets as demand settles into post-vaccine balance.

“China’s near-term import demand is elevated, but is expected to slow in the second half of the year. High domestic milk prices are driving interest in expanding domestic milk production, which could reduce import needs in the future,” according to Ben Laine, analyst – dairy at Rabobank. The high milk prices favoured imported whole milk powder (WMP) early in the year, but that demand could see a pause following a recent spike in Oceania prices. Milk prices in China have likely reached a peak and will begin to soften from here.

Demand will be in the driver’s seat in 2021. “Throughout the pandemic, global milk supply has been much less impacted than demand. Disruptions arose as consumers made significant shifts in their consumption patterns, which spilled through supply chains. Most of those shifts were abrupt and severe as we entered the crisis, but coming out should be much more gradual,” explains Laine.

Most economies will grow in 2021 compared to 2020. Rabobank is forecasting a 4.5% year-on-year increase in global GDP for 2021, compared to a -3.8% contraction in 2020. The impact of widespread vaccination should be felt by mid-year, which will be positive for economic activity. There will still be a long tail to some aspects of the recovery.

Arenas or convention centres may not be filled this year, but restrictions on restaurants are likely to be lifted, and holiday gatherings are less likely to be discouraged. This will positively impact dairy demand, particularly in markets like the US, where a greater volume of dairy is consumed through foodservice channels than through food prepared at home.

Also in the US, whey and nonfat dry milk have done well, though exports are currently challenged by container availability. These logistical challenges are leading to a large price spread compared to the rest of the world and discounted US commodities. Still, demand from China for whey remains strong, and the shipping challenges should be resolved by the end of the second quarter of 2021.

To download Rabobank’s quarterly report, visit: research.rabobank.com/far/en/documents/138573_Rabobank_Global-Dairy-Quarterly_Q12021.pdf.

The post Demand seen as dairy driver in 2021, says Rabobank appeared first on Dairy Industries International.

The Tate & Lyle Nutrition Centre aims to increase awareness of evidence-based science for ingredients including low- and no- calorie sweeteners and dietary fibres, and their role in a healthy, balanced diet. Accessible via www.tateandlyle.com/nutrition-centre, the hub houses expert insights, research and educational tools for food and beverage companies, scientists and health professionals.

Visitors to the Tate & Lyle Nutrition Centre can access:

• Pre-clinical and clinical research conducted or supported by Tate & Lyle scientists, often carried out with leading universities across the globe, providing key scientific evidence about Tate & Lyle’s ingredients and their impact on gut health, blood glucose management, metabolism, gut microbiome, weight management, bone health, and overall health.
• White papers, articles and events on a range of nutrition topics such as glycemic response and synbiotics, the science around how ingredients relate to health, and diet trends such as sports nutrition, and keto and low-carb diets.
• External research, nutrition guidelines, and advice, initiatives and developments published by global authorities in the area of nutrition and health such as the World Health Organization.

The Nutrition Centre was developed by Tate & Lyle’s Global Nutrition Team which drives the Company’s science research programme and supports food and beverage companies from its bases in the UK, US, Brazil and Singapore.

Dr Kavita Karnik, global head, Nutrition & Regulatory Affairs at Tate & Lyle, said: “With global obesity and diabetes rates rising, there is a great deal of interest from industry, governments, and the health and science communities in food and beverage ingredients with proven health benefits, such as weight management and gut health. Scientific knowledge around ingredients continues to grow, with exciting emerging research pointing to additional health benefits, such as the role some fibres can play supporting immune system function and metabolic health.

“With our new digital Nutrition Centre, we have made it easier for our customers and the wider industry, as well as peers in the nutrition and science world, to access high-quality research content that informs product development, adds to the evidence-base, and supports healthy living.”

The post Tate & Lyle launches new Nutrition Centre appeared first on Dairy Industries International.

Company-specific programmes and calls from processors to reduce milk deliveries continue to have an effect. However, the situation on the milk market remains tense. The tightened measures and what is now the third lockdown in Austria due to the coronavirus are affecting consumer behaviour, albeit not as strongly as during the first lockdown in spring 2020.

Meanwhile, Rabobank analysts are cautiously optimistic in the current milk market forecast, because prospects for milk prices in 2021 are better than expected at the beginning of the pandemic.

After a very strong global milk production growth in 2020, Rabobank assumes that milk production will slow down significantly in 2021. The global growth in milk volume is estimated by Rabobank to be around 2.7 billion litres in 2021, which is far below the increase in milk production from 2020.

Rabobank points out that for the largest global milk exporters – EU, New Zealand, USA, Australia, Belarus, Argentina and Uruguay – the growth in milk production in 2020 was surprisingly high. In 2021, the EU and South America are projected to see the largest slowdowns in milk growth, while production in Oceania and Australia will remain unchanged.

Further positive reasons for the good prospects on the milk market are the rising raw material prices (especially crude oil) and it is also assumed that the demand of some large milk importers will increase. In addition, expected recovery in economic growth is also having a positive effect in many regions.

The post Global milk output lower but prices up appeared first on Dairy Industries International.

The authors of this study, from the Federal Institute of Rio de Janeiro, Fluminese Federal University, Federal Institute of Paraná, and Natural Resources Institute Finland, assessed the addition of demerara sugar, brown sugar, fructose, coconut sugar, and honey to sheep milk kefir. One hundred consumers rated the appearance, aroma, taste, texture, and overall impression, and expressed whether they were satisfied, active, loving, calm, comfortable, energetic, happy, healthy, refreshing, disgusted, worried, or upset.

Sheep produce 10.6 million tons of milk per year, or 1.3% of the world’s milk production. “The results of the present study are relevant for the sheep milk dairy industry, as they indicate that emotional perceptions and sensory acceptance of kefir sweetened with different agents are directly correlated,” said lead author Adriano G Cruz, PhD, Food Department, Federal Institute of Rio de Janeiro, Rio de Janeiro, Brazil. “The evaluation of emotions evoked by products can be an important tool to obtain additional information that can be used for product optimization and market strategies by the sheep milk industry.”

Sensory acceptance (appearance, aroma, flavor, texture, and overall liking) of experimental kefir fermented milk formulations. Values are expressed as mean ± SD (n = 100 consumers). a–c The same lowercase letters indicate lack of statistical difference (P > 0.05) for the same sensory attribute. SUC = sucrose, DEM = raw demerara sugar, BSG = brown sugar, FRU = fructose, COC = coconut sugar, HON = honey (Credit: Journal of Dairy Science).

The use of brown sugar decreased ratings for taste, texture, and overall impression, as well as the emotions “active,” “loving,” “energetic,” “healthy,” and “refreshing.” The use of coconut sugar decreased ratings for appearance, aroma, and taste, in addition to the feelings “refreshing” and “upset.” The use of honey improved ratings for appearance and aroma but reduced the ratings for the emotions “active,” “loving,” “energetic,” and “healthy.” Kefir samples with higher sensory acceptance scores were associated with higher levels of the feelings “satisfied,” “active,” “comfortable,” “energetic,” “healthy,” and “refreshing.”

The results of the study suggest that demerara sugar or fructose should be used as a substitute for sucrose in the production of sheep milk kefir to increase consumption.

Professor Cruz added: “These findings are interesting, as they give useful information to sheep milk processors to establish different marketing strategies for each group of samples, serving as initial guidelines.”

This research illustrates that the study of emotions can be used to obtain data related to products’ sensory acceptance.

The post Type of sugar used to sweeten sheep milk kefir may improve consumer acceptance appeared first on Dairy Industries International.

With GEA milking technology components and Holstein dairy cattle, the family farm initially produced 1,500 liters of milk a day. The Trevisan farm now produces 13,000 liters of milk daily with a herd numbering 900 animals, with 370 lactation cows at its new location in Farroupilha in the state of Rio Grande do Sul in southern Brazil. To optimise the animal’s living conditions, the free stall barn provides animal-friendly equipment from A to Z: Ventilators, sprinkler systems, a fresh water supply and rubber mats noticeably enhance animal comfort. The relaxed atmosphere in the barn and the cows’ well-being reportedly has a positive effect on milk performance.

Sustainability and environmental friendliness were also considered when processing the manure. GEA’s liquid manure technology therefore consists of a scraper system ensuring dry walkways continuously and improving the hygiene standard in the barn. The resulting mass is first homogenised in pump and agitator systems. Subsequently liquids and solids are processed in separators, screens and presses. As valuable compost as well as liquid fertiliser for growing grain, the processed liquid manure replaces artificial fertilisers. In addition, the high-energy material is used in Fazenda Trevisan’s own biogas plant to produce electricity, which can then be used for the farm’s operational processes.

“Processing our own milk and marketing it successfully in the region was another important goal,” says Jean Carlos, one of Trevisan’s sons, explaining the investment in the farm’s own dairy. The GEA product line consisting of centrifuge, homogeniser and pasteurising system increases the added value of the operation and opens the door to a segment of the dairy sector that will bring the family farm a significant increase in income in the long term.

The dairy was installed right next to the milking facility to process the raw milk into high-quality dairy products in the shortest possible time and pack them. The fully automated GEA production line optimises the workload for personnel and ensures the highly efficient, economical use of energy, water and operating resources for process control and plant hygiene. Thanks to processing the milk directly on the farm, transport routes are eliminated and cooling times minimised, with a positive effect on Fazenda Trevisan’s environmental impact.

The plant was designed to process 20,000 liters of milk per day, mainly focused on producing pasteurised and homogenised milk. However, the design is flexible so that production capacity can be expanded in the future. “GEA’s solutions make sense, because they are efficient, long-lasting and very robust, which pays off in the maintenance routine even after many years of use,” emphasises Jean Carlos.

“These guarantees are only possible because the plant’s level of innovation and automation is very high,” adds head of production, Luciano Persico. “The plant is ultra-modern and has become a model for many dairy farms in Brazil. In addition, GEA’s service and support are always very satisfactory. All stages of planning, implementation, system integration and after-sales support were carried out very well.”

Just months after start-up, the family-run dairy farm is already successfully selling five products in the most important markets in the surrounding regions, from whole milk all the way to lactose-free milk and cream. Its success proves the farm made the right decision: the brand Trevisan stands for the sustainability and quality of products consumers love, with origin guaranteed.

The post GEA technology promises sustainably sourced milk with guaranteed origin appeared first on Dairy Industries International.

The new partnership has resulted in the launch of the first product in an Ecolean package on the Brazilian market, a nutritious Bat Gut vitamin smoothie-type product. The Bat Gut brand was a flexible packaging pioneer in the 1990s and the brand has now innovated again with the unique Ecolean packaging concept.

“Bat Gut is already a strong brand and we plan to further enhance brand value with added-convenience, innovative packaging and a delicious vitamin formulation,” said Bruno Girão, CEO of Betânia. “The enhancement follows a Brazilian consumer study that identified the need for more practicality and convenience, and a formulation that would meet the needs of their day-to-day lives.”

“Ecolean takes pride in offering packaging solutions to the Brazilian liquid food industry that meet consumer demands for greater convenience, sustainability and food safety,” said Andreas Jeppsson, regional director, Americas at Ecolean. “Our lighter approach to packaging is recognised as making a real difference in markets all around the world. The launch of Betânia, marks Ecolean’s entry into the promising Brazilian market and we look forward to many more Ecolean product packaging launches.”

The two different Bat Gut products are already available from the main supermarkets in north-eastern Brazil – in ‘Strawberry, Banana and Oat’, as well as ‘Guava and Cereal’ flavours.

Ecolean believes its portfolio of solutions in Brazil offers liquid food companies a new way of making a difference, by packing dairy products, beverages and prepared food processors, such as dairy cream, condensed milk, yogurts, juices, soups and food service products in unique, lightweight Ecolean packages.

The post Ecolean enters Brazil with packaging for Betânia Lácteos appeared first on Dairy Industries International.

As we have discovered, the law of unintended consequences strikes regularly with such measures. And it is always a bit alarming to see where one side sees help, the other side does not perceive it as such and instead calls it market distorting. It always just depends on what side of the fence one is on, I suppose.

I found this part from the letter the most poignant: “Farmers and dairy processors in our countries and many others around the globe are already in the fight of their lives. We are all dealing with great enough challenges already in our own markets. If the EU does not commit to avoid distorting global markets by dumping their excess intervention stocks onto the world market just as dairy sectors begin to recover, more farmers and processors outside the EU could be forced to close their doors.”

We have seen the issue of intervention causing imbalances in African markets in the past. Only a couple of years ago, African farmers came to Brussels to protest the EU stocks that were being offloaded into their markets.  “The European Union intervened in 2016-17 and held the equivalent of 16% of the global SMP market in government storage. It subsequently released the product on the world market over the next two years, unfairly undercutting international prices and harming the global dairy industry,” the letter notes.

The EU is such a large player in the dairy processing industry, but as such it means the bloc has to proceed with caution and find ways to make the current situation better for its members, to ensure their survival in these challenging times. I’m not sure the best way of doing this is by stepping on and diminishing the less-developed markets of others. These short-term actions can have long-term consequences.

The post The issue of intervention appeared first on Dairy Industries International.

A coalition of dairy organisations from Argentina, Brazil, Chile, Costa Rica, Ecuador, Guatemala, Mexico, Paraguay, Uruguay and the United States joined together in urging the EU not to repeat the inventory-building and extended market-price suppression it engaged in just a few short years ago.

Exporting large quantities of government-purchased SMP and butter at below-market rates onto the world market will prolong the deeply challenging environment under which dairy sectors are operating worldwide. The EU intervention programme would artificially distort prices for an extended period and displace commercial competition just as the world begins to recover from the immediate impacts of the Covid-19 pandemic. The groups instead urge the EU to adopt measures that further spur consumption within the EU and encourage its producers to implement appropriate production practices to survive during this difficult time.

A coalition representing dairy industries from around the Americas issued the following joint statement:
“The European Commission must avoid dumping government-purchased SMP and butter on the world market and implementing policies that undermine global dairy markets under the guise of protecting its farmers. The EU’s market-distorting practices are harmful enough during normal operations. If used in the wake of the Covid-19 pandemic, which has dramatically eroded dairy prices, they would be disastrous to the world dairy market by prolonging the current crushing economic conditions. Global buyers of SMP and butter will have little incentive to bid up prices as long as the EU government holds significant quantities in intervention.

“It’s critical that the EU act now to put a long-term plan into place regarding how to handle its government-incentivised stockpiling, given that the EU has a demonstrated history of dumping intervention purchases in a way that disrupts the world dairy market. The EU intervened in 2016-17 and held the equivalent of 16% of the global SMP market in government storage. It subsequently released the product on the world market over the next two years, unfairly undercutting international prices and harming the global dairy industry.

“Farmers and dairy processors in our countries and many others around the globe are already in the fight of their lives, working hard every day to help keep the world well-nourished through this crisis. We are all dealing with great enough challenges already in our own markets. If the EU does not commit to avoid distorting global markets by dumping their excess intervention stocks onto the world market just as dairy sectors begin to recover, more farmers and processors outside the EU could be forced to close their doors. We encourage the EU to implement policies that support greater utilisation of dairy products with the goal to increase consumption, particularly with the consumers impacted most by the Covid-19 outbreak.”

The groups issuing the statement include:

• Argentina, Sociedad Rural Argentina (SRA), Centro de la Industria Lechera Argentina (CIL)
• Brazil, Sindicato da Indústria de Laticínios e, Produtos Derivados no Estado São Paulo (SINDLEITE)
• Central America, Federación, Centroamericana de Productores Lácteos (FECALAC)
• Chile, Federación de Productores de Leche (FEDELECHE)
• Costa Rica, Cámara Nacional de Productores de Leche de Costa Rica (CNPL)
• Ecuador, Centro de la Industria Láctea del Ecuador (CIL) Asociación de Ganaderos (AGSO)
• Guatemala , Cámara de Productores de Leche (CPL)
• Mexico, Asociación Mexicana de Productores de Leche, A.C. (AMLAC), Cámara Nacional de Industriales de la Leche de México (CANILEC), Confederación Nacional de Organizaciones Ganaderas (CNOG)
• Paraguay, Cámara Paraguaya de Industriales Lácteos (CAPAINLAC)
• United States, International Dairy Foods Association (IDFA), National Milk Producers Federation (NMPF), US Dairy Export Council (USDEC)
• Uruguay, Cámara de la Industria Láctea del Uruguay (CILU)

The post Americas ask EU not to intervene in SMP, butter appeared first on Dairy Industries International.

The headquarters includes a new application centre, which is six times larger than Tate & Lyle’s previous centre in Sao Paulo and is amongst the company’s largest globally.

The new application centre will help industry manufacturers develop products that meet increasing consumer preferences for healthier, tastier food and beverages. It includes a pilot plant and state-of-the-art experimental kitchen, which enables customers to design and test different recipe formulations across a range of categories including dairy, beverage and bakery. Other services include sensory analysis and shelf-life testing of products, as well as a room for focus groups with consumers.

As part of Tate & Lyle’s global innovation and application network, the new centre will also benefit from Tate & Lyle’s recent investment in a new recipe development platform. This platform provides one global database for recipe and ingredient knowledge, connecting Tate & Lyle’s technical teams across the world and leading to a more agile response to customers with effective solutions.

Oswaldo Nardinelli, senior vice president and general manager, food & beverage solutions, Latin America, Tate & Lyle, said: “There is an increasing consumer demand in Latin America for more food and beverage options that can support healthier diets and lifestyles, and manufacturers are increasingly looking for new ways to reduce calories, fat and sugar, and enrich products.

“While the need and demand for healthier options is clear, we know that consumers will not compromise on taste and it’s this challenge – making healthy food tastier, and tasty food healthier – that our food scientists and application experts are helping food businesses overcome.

“Our new application centre brings together Tate & Lyle’s cutting-edge science, market leading ingredients and product development capabilities, offering manufacturers across the region a convenient and high quality ‘one-stop-shop’ for formulation.”

The post Tate & Lyle opens new Latin American headquarters appeared first on Dairy Industries International.

Developed for one of Emsur’s customers, Nestlé Chile, the unique feature of this banderole is its releasing layer that enables users to remove the label without tearing the paper so it is easier to separate it from the container, thus contributing to the recyclability of plastics. This is another breakthrough for Nestlé, which last year announced its commitment to make 100% of its packaging recyclable or reusable by 2025.

There are two structures available for this banderole, monolayer or duplex, to meet the needs of different market segments such as yogurts, desserts or beverages. This solution is commercially available in Chile for the Nestlé Batido brand and the multinational has launched an extensive communications campaign to mentor people in how to recycle properly with this packaging solution.

Approximately 1,200 tons of plastic could now be recycled thanks to this initiative, an ambitious figure that can only be achieved if everyone disposes of their pots responsibly at the recycling sites set up by TriCiclos, an engineering and consulting company that has provided 39 sites throughout Chile with new special waste disposal containers for Nestlé Batido pots.

Through this project, Emsur, the flexible plastic packaging division of Grupo Lantero, together with Coexpan, the rigid packaging division that makes the PS container, maintain their sustainability commitment in accordance with the circular economy and recyclability milestones.

The post Emsur and Coexpan develop easy-to-recycle yogurt pots appeared first on Dairy Industries International.

CEO Miles Hurrell said Fonterra needs to reduce the carrying value of several of its assets and take account of other one-off accounting adjustments, which total approximately $820-860 million.

“Since September 2018 we’ve been re-evaluating all investments, major assets and partnerships to ensure they still meet the co-operative’s needs. We are leaving no stone unturned in the work to turn our performance around. We have taken a hard look at our end-to-end business, including selling and reviewing the future of a number of assets that are no longer core to our strategy. The review process has also identified a small number of assets that we believe are overvalued, based on the outlook for their expected future returns.

The co-operative’s FY19 underlying earnings range is within the current guidance of 10-15 cents per share, however the reported loss of $590-675 million this year, results in a 37 to 42 cent loss per share.

Mr Hurrell said that the majority of the one-off accounting adjustments related to non-cash impairment charges on four specific assets and the divestments that the co-op has made this year as part of the portfolio review.

“DPA Brazil, the New Zealand consumer business, China Farms and Australian Ingredients’ performance have been improving, but slower than expected and not at the level we had based our previous carrying values on.”

“We’re in no doubt that farmers and unit holders will be rightly frustrated by these write-downs,” said Hurrell. “I want to reassure them that they do not, in any way, impact our ability to continue to operate. Our cashflow remains strong, our debt has reduced and the underlying performance of the business for FY19 is in-line with our latest earnings guidance of 10-15 cents per share. We remain on track with our other targets relating to reducing capital expenditure and operating expenses.”

Fonterra chairman John Monaghan said that in-light of the significant write-downs that reflect important accounting adjustments Fonterra needed to make, the company has decided not to pay a dividend for FY19.

“Our owners’ livelihoods were front of mind when making this decision and we are well aware of the challenging environment farmers are operating in at the moment,” said Monaghan.

“Ultimately, we are charged with acting in the best long-term interests of the co-op. Not paying a dividend for the FY19 financial year is part of our stated intention to reduce the co-op’s debt, which is in everybody’s long-term interests.”

The post Fonterra forecasts losses of €390million appeared first on Dairy Industries International.