USDEC releases draft 2015 ingredient Sourcebook
USDEC released a first draft of the 2015 version of its popular Sourcebook Dairy Ingredients: Production & Global Trade. The 54-page quick-reference guide provides production, export and market share data on SMP, WMP, MPC, whey and WPC, WPI, lactose and casein by country from 2008-2014.
We released the draft version due to numerous requests from members. We plan to finalize a printed version, adding infant formula, fat-filled milk powder and other information by the end of September.
The new Sourcebook is available free only to USDEC members. To order, please contact Rebecca Vidal (rvidal@usdec.org) or Véronique Lagrange (vlagrange@usdec.org) or 703-528-3049.
Back-to-back opportunities to meet Chinese buyers face-to-face
Back-to-back events in November offer an opportunity to create new or strengthen existing trade relationships with Chinese dairy buyers. USDEC has one booth space remaining for Food Hotel China, Nov. 11-13 in Shanghai. The expo is the largest and longest-running food trade fair in the country, attracting buyers from the food, beverage, hospitality and retail industries. For more information, click here.
Four days later on Nov. 17, USDEC will host a half-day foodservice cheese seminar to demonstrate the breadth and depth of the U.S. cheese portfolio and U.S. cheesemaking expertise. We expect more than 70 importers/distributors and hotel/restaurant chefs will attend the event, which takes place in Beijing just prior to World of Food Beijing. The seminar is open to all members and there is no cap on attendance.
To reserve the final USDEC booth space for Food and Hotel China or sign up to attend the Beijing foodservice seminar, contact John Klees at jklees@usdec.org or 703-528-3049.
USDEC booth space for World of Food Beijing is full, but for more information on the expo, click here.
USDEC seeks member input in lead-up to Netherlands port official meeting
USDEC is seeking input from members who have experienced problems or are seeking clarification on the process of shipping dairy products to the Netherlands or through the Netherlands en route to another EU country or as a transit point to a non-EU member state. USDEC staff will meet with port health officials from the Netherlands on Sept. 9, 2015, to discuss certificate issues and challenges of exporting to that nation. The meeting will not focus on EU policies in general, but transactional issues of shipping dairy products to or through the Netherlands. USDEC members with concerns or questions should contact Sandra Benson at sbenson@usdec.org by Sept. 7, 2015.
One week to Midyear Member Update Webinar
Only seven days are left to sign up for USDEC’s Midyear Member Update Webinar. The 90-minute event takes place one week from today—Sept. 3, 2015, from 11:00 a.m.-12:30 p.m. EDT. So far, 105 USDEC members have registered (to view the registration list, click here).
The webinar includes USDEC’s take on international market conditions, presented by Marc Beck, executive VP, strategy and insights; on Trans-Pacific Partnership talks, presented by Jaime Castaneda, senior VP, trade policy (who was present at the July ministerial meeting in Hawaii); and on the latest regulatory challenges to U.S. exports, presented by Matt McKnight, senior VP, market access, industry and regulatory affairs. In addition, the webinar provides members with an opportunity to discuss USDEC programs, positions and priorities that make up the 2016-2018 Business Plan, including specific funding recommendations, strategies for 2016 and directional aims.
USDEC invites members to submit questions in advance of the webinar. Staff will address all questions and keep submitters’ names and affiliations anonymous, if desired. Your input is encouraged to ensure the plan aligns with your company’s objectives. Copies of the draft plan were mailed to members late July—if you have not received one or prefer the electronic version, click here. To register for the event, click here.
MARKET CONDITIONS
Calls for dairy assistance increase in run-up to Sept. 7 ag meeting
EU dairy groups and ag representatives from multiple states are increasing the pressure on EU Ag Commissioner Phil Hogan in the run-up to an extraordinary meeting of EU farm ministers, Sept. 7 in Brussels. Dairy organizations, ag ministers and even the Latvian prime minister met or contacted Hogan asking for more tools to help farmers cope with the downturn in farmgate prices. Farmers across the bloc also continued demonstrations and blockades at supermarkets, tourist destinations, airports and roads to keep the issue in the public eye. They are reportedly planning a “big” protest to coincide with the Brussels meeting.
Hogan rejected calls for a temporary milk quota, dismissed the idea of distributing 2014-2015 superlevy fees to support farmers, and cautioned any individual member state against entering into direct negotiations with Russia to sell embargoed food products. Media reports printed conflicting accounts of whether Hogan was open to raising intervention prices, although he told the EU Parliament last week that intervention prices for SMP and butter were set at “appropriate levels.” Farmers and other operators would need to adjust supply to market signals, he said.
From July 13-Aug. 23, 8,859 tons of powder had moved into intervention. EU members continue to offer more butter and SMP into Private Storage Aid (PSA) every the month. End-of-month stocks are rising as well. PSA butter stocks reached about 75,000 tons in June and SMP stocks grew to more than 17,000 tons.
Hogan said he would announce a range of measures on Sept. 7 to address both short- and mid-term issues in the dairy sector, but he warned that the bloc must be careful “that we do not take measures that will compromise the market orientation” of the EU dairy industry.
Severe heat is accentuating farmer distress in Eastern Europe. Poland, the Czech Republic and Romania have all reported crop losses of 30 percent or more due to drought, with widespread damage to pastureland for cows. (EU Milk Market Observatory; AgriLand, 8/26/15; EU Observer, 8/26/15; Dairy Markets, 8/26/15; AP, 8/25/15; The Baltic Course, 8/25/15; TheDairySite, 8/21/15)
Uruguay, Venezuela strike dairy trade deal
The governments of Uruguay and Venezuela struck a deal for Uruguayan dairy processors to sell the Venezuelan state 44,000 tons of milk powder and 12,000 tons of cheese at prices “equal to or higher than” international market prices. Uruguay’s largest dairy manufacturer Conaprole will supply the milk powder, which is equivalent to around 40 percent of its annual output. Cheesemakers Claldy, Pili and Calcar will ship the cheese.
The deal comes at a critical time for the Uruguayan dairy sector, which has been hit by drought and declining farmgate prices. Prior to the agreement, the Uruguayan government had proposed a plan to provide $85 million in direct support to the nation’s dairy farmers due to poor prices and bad weather. (Dairy Markets, 8/20/15)
GDT to amend market rules to allow three of four proposals
Global Dairy Trade (GDT) plans to amend market rules to allow the introduction of three new proposals: creating new seller forecast guidelines, providing additional GDT auction data, and creating deeper liquidity pools of supply and demand by aggregating product groups. GDT originally sought input on four proposals in June (see Global Dairy eBrief, 6/11/15). The fourth—a pitch to establish an oversight board—is being reexamined and might be introduced at a later date.
GDT says it is making the changes to increase the independence, transparency and liquidity of the auction platform. The group published revised versions of the proposals here. It is inviting further comments on the plan through Sept. 8. Comments should be submitted to help@globaldairytrade.info.
COMPANY NEWS
Fonterra expands in Ethiopia
Fonterra Co-operative Group and Ethiopia’s Faffa Foods formed a new Ethiopian joint venture to blend, package and market Anchor brand fortified milk powder. Faffa had been buying Fonterra powder and packaging it under the Abay name, which it plans to discontinue in favor of Anchor.
The new company—30 percent owned by Faffa, 70 percent by Fonterra—plans to sell 2,000 tons of powder in the first year, rising to 6,000 tons by 2018. The partners will spend $10 million to upgrade and expand facilities in Ethiopia. (Addis Fortune, 8/24/15; The Ethiopian Herald, 8/19/15)
Mergers and acquisitions
As many as eight companies have reportedly expressed interest in buying Archer Capital’s Australian dairy business Brownes, including China’s Bright Foods and Fosun, Philippine-based Monde Nissin and domestic Australian food concern Lion Nathan. Bids are due at the end of August . . . Australia’s Burra Foods hired investment bank Moelis and ANZ Bank to conduct a strategic review that analysts expect could see the dairy processor sold for up to A$375 million (about US$270). (The Australian, 8/26/15)
From the U.S. Dairy Exporter Blog
