To support the dairy sector, the government has introduced several measures, including reopening agricultural export registrations to boost exports and generate foreign currency revenue. Overall, its cow milk production has dropped by 7.4% to 10.8 million tons, which has meant a rapid recovery in domestic milk prices, but a decline in consumption of 7% for 2024 estimated. Its exports have been helped by the currency devaluation, with dairy export volumes increasing by 10% in the first five months of 2024, versus the same timeframe in 2023. The question for Argentinian processors now is whether to serve the volatile domestic market, or aim for more profitable exports, the FAS says.

Meanwhile, in Australia, milk production is estimated to be up by 3.5%, to 8.8 million tons. The country is seeing rising domestic milk prices, as well as export demand from Asia for dairy products. The stability of its dollar has also kept the export prices competitive, according to the FAS.

Over in the EU, milk production is static, although the herd population has dropped below 20 million, due to lower milk prices and elevated production costs. Environmental policies such as nitrogen emission reductions in the Netherlands, are also playing a part in lowering milk production, the FAS reports.

In New Zealand, a slight 0.7% decrease in fluid milk production is predicted, to 21.1 million tons. Financial strains due to higher interest rates, along with higher inputs, are causing concerns, but the sector continues to invest in processing capacities. About 95% of the country’s production is exported, and in January, the final import duties covered in the New Zealand-China Free Trade Agreement were reduced to zero. Global export volumes are up 5% so far in 2024, with more diverse products being sent abroad.

Interestingly, New Zealand cheese exports have dropped by 6%, while Australia’s exports have grown by 28% YOY and both the UK and US have seen increases of 12% and 17% versus 2023, respectively. That being said, the EU remains the largest exporter of cheese with a 1% uptick seen this year, at 1.4 million tons in 2024. Its production will increase by about 1% to 10.5 million tons. Tourism and hospitality is contributing to upward consumption within the EU.

Australia’s cheese production is estimated to be 435,000 tons, and around 380,000 of that is consumed in the country. The exports are mainly sent to Japan, China and other southeast Asian countries.

In the US, the FAS is predicting a record-breaking year for the country’s cheese exports, to 466,000 tons, up 8% from 2023.

Individual FAS country reports covering dairy are available at: https://gain.fas.usda.gov/#/ The USDA Production, Supply and Demand database is available at: https://apps.fas.usda.gov/psdonline/app/index.html#/app/home

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Through its existing sales and service presence, SIG has been able to forge strong relationships with major dairies in Mexico, a large and growing milk market. In the USA, SIG has a well established co-manufacturing customer base and is ideally placed to serve innovative and expanding new categories.

SIG will invest around €40 million in the new plant over the period 2021-2023. The investment will cover state-of-the art production capacity for the printing, cutting and finishing of carton packs. The plant is expected to open in the first quarter of 2023 and will create around 200 jobs. It will have a highly flexible layout with a focus on ergonomics and the environment. Land and buildings will be financed through a long-term lease with an NPV of approximately €20 million.

Ricardo Rodriguez, president & general manager Americas, said: “We are very excited to announce this project which will enable us to serve our North American customers faster and more efficiently. Delivery lead times will be reduced and we will be able to respond rapidly to changes in demand. Our new plant will further drive growth in the region while demonstrating our commitment to the highest environmental standards.”

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In addition to lactoferrin, whey protein concentrates, lactose and other milk ingredients are also produced at the Leutkirch site, primarily for the European and Asian markets. Companies use these ingredients in baby foods and other nutritional products.

The new lactoferrin production line is scheduled to go into operation in spring 2021. The company is using technology from GEA, where various milk fractions can be extracted industrially and processed into products. The various process steps include the use of CEE cyclones for fine powder separation.

Specialists from the GEA Test Center in Denmark have worked with Milei to develop the relevant drying steps and produce product samples for activity studies in order to determine the optimal parameters for spray drying for the production of lactoferrin powder with the desired properties.The lactoferrin is extracted and purified using a combination of ion exchange chromatography and membrane filtration, before the purified lactoferrin concentrate is processed into powder by freeze-drying or gentle spray-drying.

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Herman Ermens, president a.i. at FrieslandCampina Ingredients, said: “Lactoferrin is a key ingredient in early life nutrition and has also shown potential health benefits for adults related to the immune system 1-9. Global demand for lactoferrin almost doubled between 2014 and 2019. By significantly expanding our production capacity, we can meet the needs of our customers. In addition, this investment exemplifies our strategy of growth through valued-added ingredients. Thanks to our technological leadership and unique experience, we’re perfectly placed to offer lactoferrin of the highest quality that complies with the strictest global regulatory requirements.”

Anne Peter Lindeboom, managing director Early Life Nutrition at FrieslandCampina Ingredients, added: “FrieslandCampina was one of the first companies to start producing lactoferrin over 25 years ago. Today’s announcement shows we’re committed to identifying and investing in the ingredients that bring the best possible value for our customers.”

FrieslandCampina Ingredients’ lactoferrin is 96% pure and is directly extracted from raw milk in its production location in Veghel. The product is spray dried and is recognised for its high consistency and excellent dry blending properties. To maintain these high standards, the expanded production location will feature state-of-the-art technology. In addition, the plant will use 100% green electricity – an important contributor to FrieslandCampina Ingredients’ decreasing carbon footprint.

Lactoferrin is naturally present in both cow’s milk and human milk. A number of scientific studies has shown several potential health benefits of lactoferrin, including anti-bacterial, anti-viral and anti-inflammatory activity as well as enhanced iron absorption.

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Somogyi is a trained food engineer and Hungarian citizen. He has held various senior positions in dairy and baby milk powder production for the past 18 years.

From 2015 to 2020 he was responsible for the management and optimisation of the production of several plants at Danone/Milupa in Fulda, Germany. He was also responsible for registering the German plants and recipes as a prerequisite for entering the Chinese market. Before that, he ran a milk processing plant for Danone in Budapest (Hungary). From 2002 to 2013 he worked at Mars, Bokros (Hungary), a manufacturer of high-quality pet food, as a development engineer, head of a shift operation and responsible head of production.

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Emulsifier manufacturer, Palsgaard A/S, has announced its investment of 750 million Danish Kroner (€100 million) to more than double production capacity at its Danish facility by 2024.

A new spray cooling tower will add a minimum additional 30,000 tonnes to the company’s spray capacity and will be fully operational by first quarter 2023. This facility will be supported by the construction of multiple new reaction, distillation, and esterification plants.

The expansion adds to the recently installed emulsifier pellet line with a capacity of 10,000 tonnes which is currently being commissioned.

Jakob Thøisen, Palsgaard’s CEO, said: “This project is another major milestone in our development. By 2024 we will be able to double our current production capacity – something which took over a century to reach. It is the result of a decade of significant global growth for our business.”

In 2019, Palsgaard was the first global emulsifier producer to achieve CO2-neutral production across its global facilities. In line with Palsgaard’s commitment to sustainability, the new production capacity will not compromise the company’s CO2-neutral status.

Jakob Thøisen added: “We have a number of new initiatives, including establishing a solar park and a biogas facility, which will provide the necessary power and waste management infrastructure to enable the new production capacity to also be carbon neutral. This aspect was a very important consideration in the planning process for the new investment.”

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A voluntary reduction in quantity by milk producers against payment of compensation can only be considered, if other measures available under European market law prove to be inadequate. The market organisation simply does not provide for a mandatory volume reduction, Holzenkamp finds.

Both routes would also take a very long time, which precludes short-term market support. Instead, according to the DRV, the private storage instrument for dairy products should now be used immediately. In this way the problems, with which parts of the market are struggling, can be dealt with more quickly and easily.

The DRV also rejects external political guidelines for quantity control between milk producers and their dairies. “Here, the individual dairy co-operatives are responsible for their own responsibility and in consultation with their members to manage the delivery quantities,” Holzenkamp said.

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Invited speakers include:

• Dr Nicoline de Haan, International Livestock Research Institute, Kenya
• Ms Anna-Maria Baka, World Organisation for Animal Health
• Dr Haim Leibovich,Consultant on dairy systems, Israel
• Dr Sophie Gallier, Dairy Goat Co-operative, New Zealand
• Assoc Prof Mutamed Ayyash, UAE University, United Arab Emirates
• Prof Thom Huppertz, Wageningen University & Research, The Netherlands
• Assist Prof Nurit Argov, Hebrew University of Jerusalem, Israel

Presentations will describe the latest scientific advances about milk originating from other animals than cows on the fields of human nutrition, science and technology, milk production and quality, as well as advances on animal health.

The Scientific Committee is pleased to invite authors to submit their abstracts for oral and poster presentations. The deadline for abstract submissions is 20 December 2019.

Conference topics include:

• Sustainability: socio-economic and environmental aspects
•  Animal health, udder health and milking efficiency
• Milk production strategies
• Novel milk products & health impact
• Processing technologies
• Quality & safety “Farm to Table”

The event will be of interest to scientists and other professionals involved in the sheep’s, goat’s and other non-cow’s dairy sectors including milk producers, dairy processing industry, trade associations, academia and governments. More information is available here.

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Customers are increasingly looking for solution providers with a broad portfolio of offerings and deep expertise to support them in delivering differentiating, delicious and sustainable end products to consumers. The combination of DSM’s dairy business and CSK will be even better able to serve those needs, and well-placed to address the fast-growing and attractive dairy cultures markets.

With the acquisition of CSK, DSM will further strengthen its product portfolio and application know-how and expertise in food & beverage, in particular in the complementary areas of taste, texture and bio-preservation solutions for semi-hard cheeses such as Gouda and Edam.

The transaction will include CSK’s state-of-the-art dairy application centre in Wageningen, and its high-tech fermentation facility in Leeuwarden, both in the Netherlands, providing additional production capacity for a range of products in Europe.

Patrick Niels, DSM food specialties president, said: “We are very much looking forward to welcoming CSK to DSM. Our companies have a great fit together, with shared passion for dairy, skilled and dedicated people, and complementary solution portfolios. This is also a testament to DSM’s commitment to the dairy industry, which we support throughout our Nutrition businesses.

“Today’s dairy needs are constantly changing, and DSM continues to invest in enabling customers to keep satisfying consumer demand, helping them grow their business, while we grow ours in line with our purpose-led, performance-driven strategy. The acquisition of CSK will greatly strengthen our ability to do so.”

Sanne Melles, CEO of Royal CSK, said: “In DSM, we recognise the opportunity for CSK to make the leap forward that we were looking for. Our combined capabilities will accelerate our international growth ambition and enhance our innovative offerings to the dairy industry”.

The two companies share a long history of serving food and beverage markets, with deep roots in the Netherlands. CSK has a track record of Dutch heritage semi-hard cheese cultures of more than 100 years since its foundation in 1905, while in 2019 DSM celebrates 150 years of fermentation and biotechnology innovation at its site in Delft.

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The company will invest approximately €50 million in the site over the next two to three years to increase capacity as it becomes the key strategic manufacturing hub for the company in MENA. Arla will also create more than 100 direct jobs over the next two to three years in the local market. The opening follows Arla’s acquisition of Mondeléz International’s processed cheese business in the region in May 2019, which also gave it full ownership of the production site.

The majority of Arla’s products sold in the region will now be produced locally at the site in Manama, which will enable the company to further expand its branded cheese production and improve overall efficiency in its supply chain. By 2025, Arla expects to increase annual production in Bahrain to more than 100,000 tons under its Puck, Arla, Dano, Kraft and Private Label brands while creating new jobs in the process.

By moving the production of processed cheese and sterilised cream to this new site, Arla expects to improve the shelf-life of products by up to six weeks as transport and distribution are reduced significantly. Product categories produced at the site will be sold primarily in the Middle East as well as US, West Africa and Southeast Asia.

His Excellency Zayed Rashid Alzayani, Minister of Industry, Commerce & Tourism said, “We are delighted to welcome Arla to be part of Bahrain’s manufacturing landscape. As a vital member of “Team Bahrain”, the Ministry of Industry, Commerce & Tourism shall continue to play its role in the attraction of FDI, facilitation of doing business and supporting growth in line with our economic diversification and expansion plans.”

Khalid Humaidan, chief executive, Bahrain EDB said: “Arla is the latest in a long line of international manufacturing companies to make Bahrain a home for their regional operations. Today’s inauguration of Arla’s largest facility outside Europe is testament to Bahrain’s position as a leading destination for manufacturing companies looking to access the region’s $1.5 trillion market. The Kingdom offers investors a number of competitive advantages, including the availability of a highly skilled local work force and highly competitive operating costs.

“Arla is a great addition to our manufacturing sector, one of the pillars of the Kingdom’s economy, where manufacturing now accounts for over 14% of Bahrain’s GDP, the second largest non-oil sector. Arla’s investment will create a number of jobs in the local market and will play a key role in supporting our diversification efforts, in line with Bahrain’s Economic Vision 2030.”

Arla Foods CEO Peder Tuborgh said: “The Middle East and North Africa is a priority market for us and the inauguration of this production site in the Kingdom of Bahrain consolidates our commitment to the region. Our decision to make Bahrain our key manufacturing hub for the MENA region demonstrates our confidence in the Kingdom’s rapidly-growing manufacturing sector and alignment with the nation’s Vision 2030 economic diversification plans.

“Dairy is an integral part of a healthy diet and this new facility will enable us to increase production and step change our innovation speed to meet increasing consumer demand. We are confident that Bahrain will be instrumental to the success of Arla’s growth plans and we are grateful to our local partners and the government whose unwavering support and dedication have made today possible.”

Since 2010, Arla has more than doubled its sales organically across the MENA region, which is the company’s largest commercial area outside Europe, through strong positions in cheese under the Puck brand, butter and spreads under the Lurpak brand as well as milk powder and UHT milk under the Dano and Arla brands.

In 2018, Arla’s retail and foodservice revenue in the MENA region reached €560 million.

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The Bayernland group generates sales of €900 million, of which €560 million is attributable to the Bayreuth, Kemnath, Amberg and Regensburg plants.

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This new cultures allow cheesemakers to increase production efficiency, while also delivering cheese that is of consistent quality, taste and texture, even during the long production runs demanded by today’s large, cost-driven cheese diaries.

Young cheddar and barrel cheese accounts for the majority of cheddar cheese types produced worldwide today. These cheeses are widely used in the food processing and services industries for food products including ready meals, pizza and burgers. To answer consumer demand for high-quality cheese that performs consistently across these applications, cheese producers have tightened specifications on chemical composition and functionality. To set their brands apart in an increasingly competitive and demanding market, cheesemakers are investing in new, innovative solutions that allow them to speed up the cheese production process and optimise efficiency.

Tested by selected commercial cheesemakers, the DelvoCheese CH-120 range consists of six rotations and carefully selected culture strains to resist phages. The new range offers durable phage protection and a consistent performance. It also creates young cheddar and barrel cheese with the typical neutral flavour and firm texture of cheddar cheese that the market expects.

“We designed the new DelvoCheese CH-120 cultures with cheese producers’ needs in mind”, said Evandro Oliveira de Souza, business lead for cheese at DSM.

“We know that reliability, consistency and efficiency are essential to helping them produce high-quality, great-tasting cheddar cheeses faster and more effectively, while also prioritising robust protection against phages. We are proud to offer innovative solutions that help our customers create unique cheese products that meet the needs of an increasingly demanding market”.

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The cheese-maker was able to upscale its daily production from around four tonnes to almost 10 tonnes thanks to the new packaging machinery equipment.

ULMA Packaging UK supplied Wyke Farms with the horizontal FV35 FLOW-VAC flow wrapper (HFFS), along with a TR300 shrink tunnel to vacuum pack 1.25kg to 5kg big cheese blocks. Now the production line can produce 25 bags per minute, an uplift in quantity from the manually-driven five bags per minute that the old packaging system could handle.

The combination of the FV35-created vacuum pack and high barrier film in tandem with the TR300’s shrinking and air flow stations provides a high-speed application that also keeps food fresh, extending shelf life and improving presentation.

Wyke Farms’ production manager, Leigh Norris, said the equipment has helped boost output levels: “The aim was to improve the efficiency of the line by speeding it up. This is the first piece of kit we’ve had from ULMA Packaging UK and it’s been faultless – from the quick turnaround of a few weeks to complete the order, to the fantastic sales and after sales service.”

ULMA Packaging UK’s business manager for machine sales, James Couldwell, said: “When automating the vacuum pack house, cheese makers need to consult suppliers about flexible and competitive solutions that suit all types of products. We have a great rapport with Wyke Farms and look forward to a long-standing relationship with them.”

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Lingering effects from the year’s weather on feed quantity, quality and cost has severely impacted Australian milk flows and stalled European growth. The US looks set to see the lowest year-on-year growth since 2013.

Yet some areas have seen more positive results. As a result of more moderate feed costs and profitable milk prices, Brazilian production is expected to close in quarter four with growth of 3% year-on-year, up from 1% in quarter three. Argentine producers have overcome inflated milk production costs and continue to make a recovery from the low volumes delivered over the prior two years. But the star performer remains New Zealand, setting a new record for peak milk flows in the month of October. Still, estimated flows for the Big 7 during quarter four 2018 are for just 0.6% year-on-year– the lowest since 2016.

According to Emma Higgins, Dairy Analyst with RaboResearch F&A: “A challenging environment for expansion lies ahead. Herd numbers continue to shrink in Australia, Europe, and the US, either to mitigate escalating costs and/or overcome disappointing farmgate milk prices – features that will continue into the first half of 2019. Australia faces a slow recovery, with industry confidence severely knocked, while consolidation of farm numbers in the US and Argentina is also set to continue.

“The EU is finding its footing post-quota removal and drought impact, which may provide opportunity for some regions, but challenges for others – particularly farmers in the Netherlands navigating farm phosphate references. New Zealand dairy is facing stronger competition for other land uses, and resource constraints will provide barriers to growth across to 2020.”

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Following the successful launch of the new automatic milking system, DeLaval has ramped up production as order intake has dramatically increased. It is making full use of its modernised facilities by increasing production personnel, adjusting supply chain planning and securing deliveries from suppliers.

“We are very pleased by how our customers have received the new VMS V300 milking system. The new distribution centre is working as a fundamental part of this success serving customers and dealers. Consolidating the future of DeLaval supply chain is key to the collective success of DeLaval, partner dealerships and farmers”, says John-Erik Hermanson, executive vice president, supply chain.

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The company opened the Arla Innovation Centre (AIC) in Skejby, Denmark last year. With the €36.3 million investment, Arla is now creating a hub for research and development innovation within whey and milk based ingredients.

Construction is expected to begin in the fall of 2019, and the centre is expected to open in 2021. It will be a 9,000 square metre facility with open office spaces, labs and a pilot plant. The centre will employ up to 90 people.

Peder Tuborgh, CEO of Arla Foods, says, “The world’s population is growing, whh increases the need for healthy and sustainable food. It is a big challenge, and in Arla we want to be part of the solution.

“We know that dairy nutrition can play an important role in securing a healthy and balanced diet for people across the world, and with this innovation centre we will use cutting edge research and technology to explore milk and whey to their full potential as ingredients for a wide range of nutrition.”

The investment in the innovation centre was recently approved by Arla Foods’ Board of Directors, supporting the company’s strategic focus on innovation. The centre will be part of Arla Foods Ingredients (AFI), the Arla subsidiary that has transformed whey from what was once considered a waste product to premium, high quality ingredients used for infant nutrition, clinical nutrition, sports nutrition, health foods and other foods and beverage products.

Henrik Andersen, group vice president in Arla Foods Ingredients, says, “Our customers are always looking for new solutions to adapt to changing consumer demands. Our focus is to explore all the components in the milk and whey and combine them to enhance the nutritional or functional value of a product.

“Together with our customers, we will explore this even further in our new innovation centre to help them develop new products that meet the specific nutritional needs of children, athletes, patients and consumers.”

The new centre will be located in Nr. Vium, Denmark in close proximity to Arla Foods Ingredients’ largest production site, Danmark Protein. At the centre, scientists, technicians and innovators will cover all aspects of research and development within whey and milk – from advanced separation technologies to isolate specific components of the whey or milk, to heat treatment and pasteurisation technology to improve functionality and shelf-life.

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China’s changing demographics have driven a surge in popularity for Western foods. The 20kg blocks of cream cheese from Darfield will meet growing demand for bakery goods, like cheese cakes and cheese tarts.

Susan Cassidy, general manager marketing, global foodservice, Fonterra, says growth in China’s middle class, rapid urbanisation and changing consumer tastes have contributed to explosive growth in the number of consumers wanting New Zealand dairy.

“People in China want natural dairy products they can trust in their baked goods. That’s great for Fonterra and New Zealand,” she says.

Robert Spurway, chief operating officer, global operations, Fonterra, says the new plant is an important part of the Co-op’s strategy to keep up the momentum in producing more value-added products for its consumer and foodservice business.

“Today, one in four litres of milk from New Zealand is sold to China – that’s the equivalent of 3.4 billion litres a year. Our focus is on creating the highest return from each of those litres.

“The new plant will enable us to convert more milk to high value cream cheese, which is in popular demand. We’re really proud of our technology which alters the firmness and consistency of cream cheese according to customer preference. It’s a technology first and a huge competitive advantage,” Spurway says.

Darfield’s acting site operations manager Shane Taylor says the 30 new employees hired to operate the cream cheese plant have been looking forward to the site opening for the last six months.

“Most of the team have learnt everything from scratch. They’ve gone from classroom to practice to real life commissioning of the site. If the plant was a ship, they would have been the crew preparing for its maiden voyage and a long life on the ocean,” Taylor adds.

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