The protein in question is lactoferrin, found in the milk of most mammals. Bovine lactoferrin, from cow milk, has bioactive characteristics against many microbes, viruses, and other pathogens and has been found to inhibit SARS-CoV-2 infection under experimental conditions by blocking the ability of the virus to enter target cells, as well as by supporting cells’ antiviral defense mechanisms.

“Bovine lactoferrin has shown antiviral activity in human clinical trials,” says lead investigator Jonathan Sexton, PhD, of the University of Michigan Department of Internal Medicine. “For example, orally administered bovine lactoferrin has been shown to improve the severity of viral infections, including rotavirus and norovirus. Given the broad antiviral efficacy and safety, minimal side effects, and commercial availability of bovine lactoferrin, several review papers have suggested using it as a preventive or post-exposure treatment for SARS-CoV-2 infection.”

With the goal of improving clinical relevance and translatability, the team tested bovine lactoferrin against some of the most common SARS-CoV-2 variants of concern from around the world, including the WA1 variant representative of the United States outbreak in 2020, the B.1.1.7, B.1.351, and P.1 variants, and the Delta variant. Sexton explains, “Each of these variants includes modifications to the SARS-Cov-2 spike protein that reduce the efficacy of newly produced vaccines. Furthermore, each of these strains shows reduced neutralisation by vaccination sera.”

Infected cells shown in magenta (Credit: Jonathan Z. Sexton)

The team’s aims for this study were to expand upon the observation of the potent in vitro anti-SARS-CoV-2 efficacy that bovine lactoferrin has demonstrated with a more thorough examination, as well as to screen commercially available milk products for antiviral activities, which may be enhanced by the presence of other ingredients in addition to lactoferrin. Finally, they investigated whether dextrose and sorbitol, commonly used in the manufacture of tablets for oral medications, would interfere with the ability of bovine lactoferrin to inhibit SARS-CoV-2.

The researchers found that bovine lactoferrin was effective against all the strains that were tested in vitro, and they expect it would also have activity against additional emergent strains. The other components in commercial milk products did not appear to offer antiviral protection, confirming that that the efficacy of these products does appear to be entirely dependent on bovine lactoferrin. Moreover, the team found that dextrose and sorbitol did not reduce bovine lactoferrin’s effectiveness against SARS-CoV-2 – suggesting the feasibility of developing an anti-Covid pill.

A key benefit of the broad antiviral efficacy of lactoferrin is its potential for the prevention or treatment of emerging diseases. Sexton emphasizes, “This is especially important when there are limited treatment options, or when the treatment options are too costly for widespread use. An orally available therapeutic that covers emerging strains would be ideal for treating SARS-CoV-2 in areas without widespread vaccination or if new strains escape the vaccine.”

Although future work is needed to fully understand the antiviral potential for bovine lactoferrin in a clinical setting, this in vitro study represents promise for another tactic in the fight against the global Covid-19 pandemic.

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France is heading up the EU Presidency for the next six months while holding national elections, so events across the Channel no doubt will have an impact on our borders again. I have to say, it often feels like the British borders are less controlled by the national government now, than when we were still in the EU.

Not to mention another coronavirus variant, Omicron. Some national borders have closed again (France to anyone who is not a citizen) and well, it feels like the sequel to last year’s pandemic opening. I’m only hoping it winds up to be Paddington 2 or The Empire Strikes Back, rather than one of the Batman sequels. A good sequel versus a poor one.

On the upside, we are all vaccinated and boostered here. Here in London, our friends have still been hit by Covid, but the results have been a few grumpy days indoors and not interacting with others (my one friend enjoyed binging on box sets, free from having to cater to her children’s demands all day), due to the vaccination programme.

I would also mention access to free rapid testing, which has been another feature here in the UK. I was wandering around visiting pharmacies the other day to secure more tests so that we could take them to go visit our relatives. I know not everyone gets this for free and again, thanks to the national health service (NHS) and its supporting agencies for this.

So, while we’re not out of the woods yet with this particular global pandemic, it’s here for 2022. Whatever you may get up to this year, I wish you all the best and hope to see you in person and online.

• Suzanne Christiansen, editor, Dairy Industries International.
  Keep in touch via email: suzanne@bellpublishing.com
  Twitter: @dairyindustries or LinkedIn: Dairy Industries International magazine.

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The Tetra Laval group has announced a €10 million contribution in support of Unicef’s work to deliver Covid-19 vaccines globally. The donation will contribute to Unicef’s efforts to strensgthen global vaccine equity, especially in lower-income countries.

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It was a masterclass in cheese tasting during pandemic times – separate plates brought out, we selected attendees sitting at tables of two, temperature taken and all thoroughly hand gelled. It felt quite safe, which is all you can do right now in this country, where the government has decided to open up everything as of 19 July, despite rising infection rates.

It was lovely to see people in person and not on Zoom, as John Farrand pointed out at the tasting. Mary Quicke and Catherine Mead, in real life. It was almost too much to take in. My personal favourite was the Perazola, a sheep’s milk blue cheese that collected a slew of awards. Although you can’t turn down the elusive Cornish Kern, which is often sought but not often tasted. It is worth tracking down.

It was odd, because I sat there with my tablemate from Brindisa and chatted, and thought, just for an hour or two, of a life before coronavirus. It felt almost normal.

One day before, I met up with our esteemed board member Jenny Deeprose in Borough Market, which is just outside London Bridge. She was in town for another tasting, this one cider. It had been cancelled because one of the staff had tested positive, so she wandered around drinking coffee and enjoying the scenery until I met her for lunch. I got into town and thought, ah.

So many young people were around, wandering the market in advance of the semi-final being played at Wembley that night. I’m not sure what your feeling are on the subject, but this pandemic has made me very wary of crowds.

However, inside the restaurant, there was nobody there except us. It was just opening up, we took our seats, ordered food and enjoyed some industry gossip – along with a pretty fine charcuterie plate, at Bedales of Borough Market. I was just contemplating what type of coffee to have when the apologetic waiter came over and told us to not rush, but they were closing because one of the kitchen staff tested positive. Didn’t come into contact with any customers, but they closed as a precaution. Ah.

We got more bread, finished our food and drinks, and then they presented us with a reduced bill and a voucher for a free glass of wine when we return. They were apologetic, as if it was their fault there was a virus raging throughout the world.

We left and went to Neal’s Yard to buy cheese. I half expected someone to say, we are closing because someone tested positive, but instead they sold us some lovely cheeses.

Overall, I did feel a bit chased around by the coronavirus, but currently that’s how we live right now.

• Suzanne Christiansen, editor, Dairy Industries International.
  Keep in touch via email: suzanne@bellpublishing.com
  Twitter: @dairyindustries or LinkedIn: Dairy Industries International magazine.

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As you look at the data, you see where the pandemic hit first, with most big economies humming along – maybe not spectacular growth, but nothing too negative. Then in the second quarter of 2020 it all went pear shaped, particularly for the UK and India, with drops of 19% and 25.9%, respectively.

China’s previous respectable growth took a negative 9.7% dive for the first quarter, then rebounded as its plants fired up to make PPE and other useful items for virus containment, along with all the items that we decided we needed while in our houses (an inflatable T-Rex costume, for example. It is a big hit in the neighbourhood when we take our child out for a stroll wearing it.) China’s control of the coronavirus also contributed to its remaining in the positive column for the rest of the year.

Among the G20 economies, India continued to record the highest growth (7.9%) in the fourth quarter, following a growth of 23.7% in the previous quarter. This just about made up for its decline in the second quarter of 2020. India’s drop in the second quarter reflect when the virus landed, but the third quarter rebound shows how its manufacturing has contributed to the supply of needles and vaccine.

In most other economies, GDP growth, although lower than in the third quarter, remained positive: Mexico (3.3%), Brazil (3.2%), Australia (3.1%), Indonesia (2.9%), Japan and Saudi Arabia (2.8% in both countries), China (2.6%), Canada (2.3%), Turkey (1.7%), South Africa (1.5%), Korea (1.2%), United Kingdom and United States (1% in both countries) and Germany (0.3%).

On the other hand, GDP contracted in Italy and France (by minus 1.9% and minus 1.4%, respectively), after strong rebounds in the previous quarter (15.9% and 18.5%, each). What we’re seeing here is the effects of the coronavirus and resulting lockdowns. These countries continue to concern me, as much of the EU does.

On a selfish note, if Europeans don’t get their vaccination properly underway and the virus continues to go through the Continent and mutate (eastern European rates are up), we here in the UK will sit in our self-catering cottages on the south coast and eat chips moodily while yearning to be across the sea in 2021.

The US is worrying with its reopening of the states before cases have properly dropped or its inhabitants been vaccinated. However, the change in administration has meant that the vaccination programme has accelerated. This should hopefully start making a dent in those terrible new cases and death numbers. Again, we’d like to visit family in the US, but right now that looks like a 2022 dream.

For 2020 as a whole, GDP fell by 3.3% in the G20 area, with only China and Turkey recording growth (of 2.3% and 1.8%, respectively), while the United Kingdom experienced the largest fall, at negative 9.9%. This last one seems to be both the Brexit effect, and then you add in the coronavirus. That being said, the last two quarters of 2020 were positive for the UK and we’ll probably see some growth, as the economy reopens and people get their vaccinations.

The OECD offers the caveat that the restrictions of the pandemic made some data collection difficult. The organisation has a lot in common with us all. Stay safe and get vaccinated, and I for one look forward to seeing people in person again.

• Suzanne Christiansen, editor, Dairy Industries International.
  Keep in touch via email: suzanne@bellpublishing.com
  Twitter: @dairyindustries or LinkedIn: Dairy Industries International magazine.

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Covid-19 concerns drive immune interest

Key health related trends from the top ten with a particularly positive influence on dairy are led by Innova’s #5 Top Ten Trend 2021 “In Tune with Immune.” Ongoing anxiety stemming from Covid-19 is pushing consumers to prioritise their immune health. Innova’s 2020 Consumer Survey indicated that 54% of global consumers claimed to have spent time educating themselves on ingredients that could boost their immune health.

Dairy products such as yogurt and fermented drinks have long been associated with immune health, largely as a result of the development and mainstreaming of probiotics. More recently interest has also risen in the immune benefits of antioxidants, and the greater use of fruit, herbal and spice extracts for flavour and function.

Achieving balance with complete solutions

The influence of Innova’s #6 Top Ten Trend 2021 “Nutrition Hacking” is also seen being seen within the top trends in Dairy. Four out of five global consumers said that they believed in progress in food and beverages through science. Developments are focusing on tapping into improving nutrition, leveraging technology and balancing diets.

Traditionally, popular claims included high protein for the protein-loving consumer, fiber-rich for digestive health, or sugar-reduced for weight and overall health. However, this is now evolving toward more complete balanced solutions. Products such as dairy drinks offering “advanced” or “complete” nutrition are leveraging the best of both worlds for natural and technology-driven options.

Boosting mood health

Another Top Trend in Dairy is “Mood: The Next Occasion.” Concerns over mental health are more significant than ever. According to the WHO, depression may be the leading illness globally by 2030 if no action is taken. Dairy NPD around mood is seeing rapid growth, with rising use of on-pack claims relating to specific mood platforms.

Calming/relaxing and energy boosting are the most established platforms, while sleep promotion is still niche, but reportedly growing from a smaller base and showing potential for further innovation. The use of adaptogenic herbal extracts for combating the mental and physical effects of stress is also trending as upward interest in more holistic well-being develops.

“There is clearly ongoing potential for the dairy market”, says  Lu Ann Williams, director of Innovation at Innova Market Insights. “It remains one of the world’s most valuable food sectors, with a healthy, nutritious and versatile image and the potential for ongoing added value. However, the recent struggle with Covid-19 and a generally tougher consumer environment may prove challenging.”

On 10 March 2021 at 4pm CET/ 10am EST, Lu Ann Williams will present the Top Ten Trends 2021 for Dairy that will impact the industry over the coming year and beyond. Register to attend the upcoming webinar here.

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As for the trade space, “This is a great position, but we don’t want to let down any past exhibitors or companies who would like to be involved with the event. We have a series of options available including space only, shell scheme, market stall or bespoke stand. We also now have stand design and build in-house and this is proving cost-effective for space only exhibitors,” says Debbie Stewart of the ICDA.

The new October dates for ICDA are 21-23 October at the same site, but “the team are working hard at the moment and still intend to put on the event in July 2021,” notes Ian Luxton, chairman of the ICDA.

If stand space is booked and restrictions mean the awards are unable to have an event in 2021, exhibitors will have the option of a full refund or to carry the cost over to 2022 and the 2021 prices will be held, the organisers say. For further information, download the trade form from the website or contact debbie@icda-awards.com or adrian@icda-awards.com who will be able to help.

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“I am pleased to announce that we are on track to achieve our goal of reaching a 5% increase in sales in 2020,” said Normunds Staņēvičs, CEO of Food Union Europe. “This is very encouraging, given the unprecedented market dynamics this year. Strategically, it’s worth noting the increase of Food Union’s ice cream market share by an average of 0.5% across markets where we sell our products. In Food Union’s core ice cream business, profit margins increased by an average of 1.8%. This is a significant outcome given the challenging times. Our Group will start 2021 strongly positioned for growth.”

In 2020, Food Union operated in nine European countries, navigated shifting market demands and launched 117 new products based on local consumer insights. Food Union Europe also increased exports into South East Asia, with total exports soaring from near-zero in the first months of 2020 to €2.1 million in sales by the end of 2020.

“Our current position speaks to the resilience of our global business,” said Mr Staņēvičs. “We have emphasised flexibility and agility in responding to the current global crisis, and ensured that local market factors were central considerations in our most crucial business.” Throughout 2019, the Group invested €18.8 million in new technologies across every part of its business and in each geographical region. “These investments were prescient and positioned Food Union to both withstand the impact of Covid-19 and to increase revenues and profitability in 2020,” Staņēvičs added.

The Group’s shareholders include its founder and executive chairman, Andrey Beskhmelnitskiy, an entrepreneur with a track record of transforming an array of assets in the food products into a robust and profitable enterprise. Hong Kong-based investment company, Meridian Capital Limited, together with one of Asia’s largest private capital firms, PAG, provide Food Union with financial backing. Meridian Capital Limited and PAG became Food Union shareholders in 2015 and 2018, respectively, to finance the Group’s growth and its expansion into the Chinese market with Food Union China.

“Even in the extraordinary circumstances that have characterized 2020, Food Union has managed to wrap up a successful year,” said Askar Alshinbayev, founder and principal of Meridian Capital Limited. “The Group has made significant investments and undertaken fresh initiatives with the goal of delivering more innovation and enhancing operational agility in the FMCG market even in the middle of market headwinds and challenges.”

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It comes as a result of close collaboration with industry experts to align it with changes in the management of hygiene in food production ensuring it reflects the most up-to-date thinking, research and developments.

Phil Voysey, senior microbiologist at Campden BRI and editor of the updated guidelines, said: “The coronavirus pandemic has seen factory cleaning prioritised like never before, but even prior to the public health crisis food businesses needed to comply with the EU regulations related to the hygiene of foodstuffs to remain in business. We’re excited to release this revised version because it is not only up to date with the relevant regulations but is also refreshed with recent developments in the area of factory hygiene, including new controls and cleaning chemical products.”

Food manufacturers, retailers and regulatory bodies prepared the new guidance in conjunction with Campden BRI scientists to provide a single source of information on cleaning and disinfecting a food factory. It will help the industry understand when to clean, how to clean and what chemicals to use to remove physical, chemical and microbiological contaminants. To achieve this, the comprehensive guideline covers a number of specific areas, including:

• How to select the appropriate chemicals – based on differences in equipment, facilities and ingredients/foods being handled;
• How to eliminate the virus that causes Covid-19 from a factory environment;
• The various methods of cleaning and disinfection;
• The equipment needed to carry out effective cleaning;
• How to build cleaning schedules;
• The timing and frequency of cleaning, and
• How to monitor factory cleanliness and verify that cleaning has been carried out successfully.

Voysey continued: “Incorporating the combined experience of industry leaders into this single document provides food and drink manufacturers invaluable guidance at their fingertips. This includes the best approaches to dealing with cleaning particularly tricky areas including drains and floors, and how to avoid common hygiene mistakes.”

Campden BRI collaborated with a working party made up of the food industry to ensure the guideline document – Cleaning and disinfection of food factories: a practical guide (Second edition) 2020 – is relevant to manufacturers and covers many of the cleaning-related challenges that they will come across. The new guidance is now available from Campden BRI.

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Happy New Year to everyone. If you’ve been not working this season, I hope it was relaxing and you enjoyed the long walks. If you have been working, thank you for your efforts in keeping the food supply chain going, while I sit here and sip my coffee with delivered milk and enjoy my morning yogurt.

As we all know, a deal has been done and we are living in the post-Brexit life here in the UK. Unsurprisingly, there’s more paperwork , but I for one am feeling a bit optimistic about the upcoming year overall, despite the current British government’s back and forthing. In a way, it’s now a regular feature and no longer upsets me. If they had a plan and stuck to it, I’d find that alarming at this point. When they moved the secondary school openings back by two weeks, I shrugged my shoulders and told my offspring to get his physics homework done.

Even this year’s colour of the year is “rising orange,” I am told, which is “optimistically bright for restoration in the new year,” the ingredients supplier Sensient explains. So perhaps that is it.

I was also encouraged by the queues here for people to get their vaccinations, which hopefully will put a lid on this outbreak. We can go back to waiting in airports and train stations again among other people, and complaining about how packed the tube is (or maybe not). The speed and skill with which the global scientific community has put this together makes me think we’re not so bad as a species after all.

But I still might get my wheel and bury it in the garden, just in case. While I await my turn for the vaccine. Light is there, but we’re still in the tunnel.

• Suzanne Christiansen, editor, Dairy Industries International.
  Keep in touch via email: suzanne@bellpublishing.com
  Twitter: @dairyindustries or LinkedIn: Dairy Industries International magazine.

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The ups and downs on the product markets led to a certain stabilisation of the markets and an improvement in the prices paid out for local farmers, who also have to struggle with additional costs. The average payout prices achieved in this year (January to October) were 34.55 cents/kg (2019 34.36 cents / kg) for GMO-free quality milk with natural ingredients without surcharges and without VAT. The values could be improved from summer and were at 36.72 cents/kg in October (2019: 33.83 cents/kg).

When the corona pandemic hit the Austrian dairy industry with full force in the spring, there was an abrupt lack of gastronomy and tourism demands during the normally high delivery times and this made the life of the dairies in tourist areas particularly difficult. Quantity control measures were necessary in several dairies.

Also in the latest lockdown set in motion in December, Austrian dairies as suppliers to the catering industry, tourism or wholesaling have been massively affected by lost sales. The processors have had to take organisational and additional hygiene measures for the safety of employees and customers, which also resulted in additional costs.

But thanks to these safety measures and additional efforts on the part of the companies, it has still been possible to guarantee security of supply despite the short-term change in demand in the food retail sector, notes the president of the Association of Austrian Milk Processors (VÖM) Helmut Petschar.

Foreign trade in Austria has so far been very positive in 2020, as exports increased by 4.4% by August, while imports fell slightly by 0.3%, according to the available figures from Statistics Austria.

Milk deliveries in Austria were at the beginning of 2020 higher than at the beginning of 2019 and since May lower – so overall, this should roughly match the previous year’s level. 19.1% of Austrian milk meets the organic standard.

The Austrian quality strategy was still developed even under the difficult conditions of the corona crisis. Essential components are the GMO-free, the high production and processing standards according to the Austrian food code and the AMA seal of approval including strict controls, innovative and sustainable packaging solutions, high animal welfare and sustainability standards. The country has also a high proportion of organic farms and other quality programs such as hay milk or organic meadow milk.

“We therefore see it as justified and necessary that these additional services benefit the farmers in the form of improved producer prices compared to international developments”, explains Helmut Petschar.

Petschar is reportedly delighted that in 2020 the protection of names for milk and dairy products has been strengthened in the EU Parliament. The VÖM president underlines that this must also be implemented consistently in Austria, so unauthorised use of the protected terms ‘milk’, ‘butter’, ‘yogurt’, ‘cheese’ and other dairy products is stopped accordingly.

Most recently in Austria there have been attempts to compress the best dairy products into nutritional profiles and bans on advertising.

“It must not be that, for example, best, unchanged organic milk with natural fat content may no longer be advertised, also that children are denied bread or cheese bread, as required by the National Nutrition Commission of the Ministry of Health. Here common sense, measure and goal are required in nutrition policy,” says Petschar.

The corona crisis has shown how important the supply of food is. Milk is an essential part of the diet of the Austrians; it represents one of the most important sectors of agriculture and is a key branch in rural areas, especially in mountain regions. The VÖM president therefore finds that joint efforts are necessary for positive further development in 2021:

• Safeguarding and further development of the near-natural Austrian dairy industry in the common agricultural policy of the EU and in the national programmes, especially in mountainous and disadvantaged areas, compensation for naturally-related increased collection costs, investment priorities to further improve animal welfare;
• Improvement of competitiveness and support of the quality strategy, feasible standards in the organic sector, support of the production and processing location Austria, avoidance of additional cost burdens and requirements;
• Mandatory labeling of origin and creation of the legal requirements so that the consumer can make an informed decision about different qualities associated with the origin;
• More transparency and fairer distribution of added value along the food chain, effective measures to eliminate structural competitive disadvantages for producers and processors, measures to curb private labels, implementation of the EU directive against unfair trading practices;
• Further development of AMA Marketing as a valuable support instrument for quality policy and marketing, support in export, solidarity-based financing by all participating sectors, focusing activities on contributing sectors, better structural integration of the participating sectors;
• Avoidance of excessive, cost-increasing, inefficient and impractical requirements in the environmental and packaging area, e.g. no excessive reusable quotas and no deposit on disposable packaging in the milk sector.

The post Petschar addresses the 2020 Austrian dairy market, looks to 2021 appeared first on Dairy Industries International.

For many in the dairy industry, this year has been a whipsaw of emotions, ranging from fear to happiness, and the many facets in between. Some businesses have shuttered, while others have realigned and found new ways to work online, delivering direct to people’s houses. Milk deliveries are up from last year, as more consumers discover the pleasure and benefit of having the milk delivered.

Personally, we had everything from chunks of Cornish Blue cheese to live lobsters delivered to the house, and there is something gratifying about someone pulling up with a locally sourced product for you. We now get baked goods delivered along with milk, which is a treat.

However nice that is, I do miss the sitting down in a restaurant or café and having someone serve me food and then take away the plates. The foodservice industry has paid so heavily for this pandemic, and dairy as suppliers has also suffered in this area. We did manage to get out a few times to eat, and in a way we really enjoyed the meals more as a special treat.

We’ve all spent more times with our families, and maybe learned to appreciate the smaller things in life, like enjoying dairy and cooking at home. This is good and I think some of that will remain after this is all over and we’ve been vaccinated.

Whatever 2021 brings, it is unlikely to be as eventful as 2020, I hope. May you all have a very safe and prosperous New Year.

• Suzanne Christiansen, editor, Dairy Industries International.
  Keep in touch via email: suzanne@bellpublishing.com
  Twitter: @dairyindustries or LinkedIn: Dairy Industries International magazine.

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The business which is owned and manged by cheese maker Gary Bradshaw now faces closure without the investment, which will help to support the business until spring 2021.

“Times are tough and the future is very uncertain and like many we have seen our business disappear overnight,” says Bradshaw. “Launching our crowdfunding campaign feels very much like failure but people have been so supportive, and it is our only option to save the business in which we have invested everything over the past seven years. Hamm Tun Fine Foods launched its crowdfunding campaign on its social media channels in late November, appealing for donations to help save the business, by offering a range of products including cheese hampers, branded t-shirts and tote bags in exchange for a £20, £30 or £50 donation. Total donations so far have reached £7,900 (€8,727), as the campaign gathers momentum with local support including Northamptonshire-based BBC presenters Reverend Richard Coles and Jo Whiley retweeting the appeal.

“We have been working hard to pool our resources to keep bills paid and most importantly keep artisan cheese making alive. But with no stock in the maturing room and no business in the future, we now need help to survive. We will only use donations to fund the business and no personal wage will be taken from the business. Our one goal is to continue to represent Northamptonshire with our cheese and we are so grateful for all the support we have received so far. It means the world,” he adds.

“I have always been passionate about making cheese and putting Northamptonshire on the map by creating its first and only range of cheeses as well as winning awards along the way, has been an amazing dream. With the support of my family, we have invested everything into the business, and I can’t imagine a week not making cheese.”

To help support the crowdfunding campaign, visit: www.crowdfunder.co.uk/save-northamptonshire-cheese.

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That being said, 2021 fluid milk production is projected to move up 2% to 11.57 million tons. An anticipated recovery in the Argentine economy in 2021 will encourage processors to refocus on the domestic economy and trim exports of powdered milk, which amounted to 180,000 tons due to competitive prices and low domestic margins.

Political and economic uncertainty continue to affect the local dairy industry. Argentina has primarily been financing its Covid-19 recovery and stabilisation efforts through printing more pesos. While inflation has run at more than 40% in recent years, the industry fears that the inflation rate will rise even higher once post pandemic economic growth resumes.

While generally not making large expansions due to industry overcapacity, sector participants are accelerating repairs and necessary upgrades by investing in assets such as milk processing equipment, tractors, and trucks. Dairy farmers with grazing land are converting some of that land to crop production as another means of guarding current earnings. They reason that newly planted soybeans and corn will retain more value after harvest than pesos saved at banks even with high interest.

Domestic dairy consumption has held up better than expected at the beginning of the outbreak, thanks in part to continued government price freezes on many key consumer staples, including dairy products. However with inflation rising 3-4% per month, the profit margins for retail dairy products are eroding rapidly and farmers warn that rising costs for labour and other inputs could quickly overtake slowly rising milk prices paid to farmers. In October, the government allowed the prices of most dairy products to rise 2%. Some major dairy processors are seeking to maintain profitability by introducing new product lines unaffected by the price freezes and limited at-home delivery of milk.

Argentina has had strong export performance so far in 2020, exceeding earlier expectations. It could become more competitive if its currency is allowed to depreciate further. Post contacts report that the government is considering reducing the current 9% export tax on powdered milk to 5%. The government is eager to replenish foreign currency reserves and recently lowered export taxes on soybeans and mining products in an effort to increase exports. Argentine regulations require that exporters convert their sales from dollars to pesos and farmers are paid in pesos.

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Glanbia’s results summary for the financial half year 2020 is as follows:

• Adjusted earnings per share of 31.05 cent, a decline of 17.2% constant currency (down 15.4% reported);
• Net debt improved by €126.7 million versus prior half year. Net debt to adjusted EBITDA ratio 1.95 times;
• Wholly-owned revenues of €1,836.7 million (HY 2019: €1,758.4 million), up 2.3% constant currency on prior half year (up 4.5% reported);
• Wholly-owned EBITA pre-exceptional of €85.0 million (HY 2019: €111.4 million), down 25.4% constant currency on prior half year (down 23.7% reported);
• Glanbia Performance Nutrition EBITA impacted by Covid-19 with conditions improving as the period ended. Transformation project expanded;
• Glanbia Nutritionals delivered EBITA in line with the prior half year as demand in key categories sustained during H1 2020;
• Joint Ventures delivered a robust performance with pre-exceptional share of profit after tax of €31.8 million up €5.0 million on prior half year;
• Exceptional items after tax of €14.6 million; primarily relating to GPN transformation project;
• Basic earnings per share of 18.73 cent (HY 2019: 28.22 cent) a decline of 33.6% reported on prior half year;
• Interim dividend of 10.68 cent per share (HY 2019: 10.68 cent), recommended by the Board, representing a payout ratio of 34.4%

Accompanying the results is Glanbia’s announcement of its agreement to acquire Foodarom for CAD 60 million, a specialist flavours solutions business based in Canada.

Commenting on the company’s results, Siobhán Talbot, group managing director, said: “In my entire career at Glanbia, I have never been prouder of my colleagues, whose response to the extraordinary challenges of 2020 have been exemplary. I am hugely appreciative of the agility, dedication and commitment that Glanbia employees and particularly our frontline workers, suppliers, and customer partners showed in quickly adopting new radical ways of working and maintaining operations throughout the pandemic. When the crisis emerged we set three priorities; to protect our people, to continue food supply and to maintain our strong financial position. Since then, our business continuity planning teams have managed health and safety rigorously, we have altered our operational plans where needed and executed those plans very well and our balance sheet strength has improved.”

She condluded: “While the short term outlook remains uncertain, the Board is confident that Glanbia has the portfolio, the consumer insight and the operational expertise to succeed in this new environment.”

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The strong performance was greater than expectations in light of global lockdowns and supply disruptions due to the Covid-19 outbreak.

Southeast Asia remained the number-one market for US dairy, once again posting record-high volume. Sales to China continued to improve. Exports to Mexico are still lagging year-ago levels, but the May volume was an improvement on April.

In May, US suppliers shipped 210,429 tons of milk powders, cheese, whey products, lactose and butterfat, 18% more than the year before. This was the highest figure since April 2018. On a solids basis, exports were also up 18%. The value of all exports was $585.2 million (€521m), 8% more than a year ago.

In the first five months of the year, US dairy export product volume is up 10% and export value is up 12%.

Exports of NDM/SMP were 79,163 tons in May, the most ever, and up 24% from a year ago. Sales to Southeast Asia (primarily the Philippines, Indonesia and Vietnam) nearly doubled, and exports to the region accounted for almost half of all NDM/SMP volume. In the first five months of the year, US powder exports to Southeast Asia were up 55% from last year, an increase of more than 10,600 tons per month.

Meanwhile, NDM/SMP sales to the Middle East/North Africa (MENA) region were the most in almost six years, and shipments to China were up more than six-fold from a year ago.

In contrast, powder exports to Mexico continue to lag, with volume down 28% from last May.

May whey exports were 44,304 tons, on par with previous months. This volume was up 17% from the depressed levels of last year, though it still trailed the strong pace of 2018. All the growth in May came from China, where volume was up 153% from last year. Relative to a year ago, whey volume was lower to Mexico, South Korea and Canada.

Shipments of whey protein isolate (WPI) dipped to a seven-month low, though they were still 20% above last year. Gains were posted in volume to China, the EU and Southeast Asia.

US lactose exports reached a 10-month high of 36,429 tons, up 21%. Suppliers increased sales to Southeast Asia, China and Japan.

Cheese exports rebounded to 35,605 tons, up 7%. This was the second-best month ever. Shipments to South Korea (+40% to a record high) and Japan (+45% to the most in almost six years) drove the gains, while sales to Australia and China more than doubled. In contrast, shipments to the MENA region, Mexico and Central America were lower.

Among other products, shipments of whole milk powder (+83%) and milk protein concentrate were higher (+23%), while volume of butterfat (-7%) continued to lag.

On a total milk solids basis, US exports were equivalent to 17.4% of US milk solids production in May, the highest rate since April 2018. In the first five months of the year, exports were 15.5% of production.

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Commenting on the launch of the consultation, Dr Judith Bryans, chief executive of Dairy UK said: “We’ve been expecting the launch of this consultation for some time now, and so today’s [24 June] announcement did not come as a surprise. We are in a good position to begin inputting to and collaboratively engaging with these policy proposals.

“Ultimately the best outcome for both processors and farmers will be a decision based on the totality of the evidence provided, and not one based only on emotion.

“Whilst ready to and keen to respond, we’re still mindful that the sector is still working its way through the ongoing the Covid-19 pandemic; that as a nation we continue to move quickly towards the end of the Brexit transition period; and we will see a step change in agricultural and environmental policies not seen for generations. There is already a lot on the plates of food businesses, to which regulation of contracts could significantly add to, if introduced.

“Nonetheless, we are looking forward to having constructive and evidence-based discussions with our members, our colleagues within farming representative organisations and government as we respond to this consultation.”

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In today’s economic crisis context, the reboot of the European economy will underline that milk and dairy is essential as the economic backbone, especially of rural Europe. The 12,000 processing sites across the Union assure 300,000 jobs in Europe – essential for society.

The European Green Deal and the digital sustainable transformation are two other important and central issues on the agenda of the German presidency. The negotiations on the 2021-2027 financial framework, and the EU‘s trade policy (eg. finalisation of the Brexit negotiations) are also important items.

It will be of crucial importance that any EU policy is always conducted under the premise of the EU single market. This great achievement of the EU must be born in mind by EU policy makers in all areas, but also be reflected in domestic policies. As a big exporting country, Germany is dependent on a functioning single market, where there is no place for protectionist tendencies and gastro-nationalism. This is especially relevant when it comes to initiatives on mandatory origin labelling, which lead to a renationalisation of raw material flows and segregated markets and products. To address potential consumer interests, a voluntary and EU- harmonised approach is the right direction. The same goes for any mandatory front-of-pack simplified nutrition label. It is important that such claims are harmonised at EU level, but their application should always remain voluntary. This should be kept in mind in the framework of the upcoming discussions on the Farm -to-Fork Strategy on a fair, healthy and environmentally-friendly food system.

A successful free trade agreement between the EU and the UK is another important aspect for Germany’s dairy association, MIV. A hard Brexit on 1 January 2021 must be avoided by all means. Zero duty-zero quota approach must be ensured to allow for the continuation of frictionless trade between the two trading blocks. Common standards and a level playing field are key to ensure fair competitive conditions for both sides. Border checks should be reduced to an absolute minimum to allow trade to continue smoothly.

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The Food Outlook report provides the first forecasts for production and market trends in 2020-2021 for the world’s most traded food commodities: cereals, oilcrops, meat, dairy, fish and sugar.

Notwithstanding market disruptions caused by the Covid-19 pandemic, world milk production is showing resilience, possibly growing by 0.8% in 2020. However, world dairy exports are expected to contract by 4%, amid faltering import demand.

“The impacts of the Covid-19 pandemic have been felt, at varying degrees, across all food sectors assessed by FAO. Whilst Covid-19 has posed a serious threat to food security, overall, our analysis shows that from the global perspective, agricultural commodity markets are proving to be more resilient to the pandemic than many other sectors. That said, owing to the size of the challenge and the enormous uncertainties associated with it, the international community must remain vigilant and ready to react, if and when necessary,” said Boubaker Ben-Belhassen, director of the FAO Trade and Markets Division.

To download the Food Outlook report, visit: www.fao.org/documents/card/en/c/ca9509en.

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