Tag Archive | "dairy products"

Muller Dairy UK to Cut Workforce


Muller Dairy UK is cutting 55 jobs across it British and Irish operations with the majority being shed at the company’s factory at Market Drayton inShropshire, where 750 people are currently employed. Part of German dairy group Theo Muller, the UK business produces yoghurt and other dairy products.

 

Muller Dairy UK recently launched its biggest ever marketing campaign. However, marketing manager Lee Rolston recently left the company after just over a year in the post. Meanwhile, chief executive Gharry Eccles departed last month, and is being replaced by Ronald Kers, former chief executive of Nestle’s Austrian and Slovenian business.

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Astarta and Danone Form Joint Venture in Ukraine


Astarta, the biggest producer of sugar and industrial milk in Ukraine, has entered a joint venture for the production and processing of milk with Danone, the world leader in dairy products, waters and baby nutrition.

Astarta’s high level of vertical integration in industrial cattle farming, own forage supply, as well as accumulated experience of industrial livestock business, will provide for a substantial increase of volumes and cost efficiency of milk production and further upgrading of its quality in the coming years. Operating a plant at Kherson along with eight regional offices, Danone is one of the largest producers of dairy products in Ukraine. Danone’s international experience will enable Astarta to take its dairy business to a new level of efficiency as it plans to double it milk production during the next five years.

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Hansa-Milch and Arla Foods to Merge


Dairy co-operatives Arla Foods of Scandinavia and Hansa-Milch Mecklenburg-Holstein of Germany are set to merge. A merger plan put forward by the boards of the two companies has now been approved by the members of the two co-operatives. The decision is being implemented with retrospective effect for the full 2011 financial year, and is enacted for January 1st 2011. The merger is not unexpected as both companies have already been co-operating successfully for many years.

Owned by 7,200 farmers in Denmark and Sweden, Arla Foods is the world’s fourth largest dairy group and operates successfully in both domestic and international markets. It is well known for its speciality cheeses such as BUKO, Castello and Hohlenkase, and for Lurpak butter. Owned by 1,200 dairy farmers, Hansa-Milch has enjoyed sustained success in northern Germany, and with its Hansano brand is one of the main providers of regionally-produced fresh dairy products such as milk, cream and quark.

The dairy business of Hansa-Milch, until now owned by the Hansa-Milch co-operative, will transfer to the ownership of Arla Foods under the merger arrangements. Manfred Remus, chairman of Hansa-Milch, who developed the merger plans together with the executive boards at Hansa-Milch and Arla Foods, will continue to head up the company with his team. In addition, consideration will be given in the coming months to the possibilities of expanding the Hansa-Milch plant in Upahl.

Hansa-Milch will now be known as Hansa Arla Milch. It remains a co-operative entity with its own members, and joins Arla Foods in that capacity. This means that the democratic structures are still preserved under the new entity of Hansa Arla Milch. In addition, the northern German dairy co-operative will have its own representatives on the boards and committees at Arla Foods.

Peder Tuborgh, chief executive of Arla Foods.

Under the merger of the two co-operatives, the Hansa Arla Milch farmers are being given a milk purchase guarantee from Arla Foods with no time restriction. In addition, Arla is assuring Hansa-Milch of a milk payment price calculated on the same basis as is used for its Danish and Swedish members.

“In previous years, the price we paid for milk was generally higher than that given by Hansa-Milch. This means that Hansa Arla Milch members can expect a higher price in future,” points out Peder Tuborgh, chief executive of Arla Foods.

The Arla Foods strategy includes paying members the highest possible milk price. “To achieve this objective, we need to continue to grow in Europe, and particularly in the important German market,” explains Peder Tuborgh. “Together with Hansa Arla Milch, our aim is to be one of the top three German dairy companies.”

The merger still has to be approved by from the competition authorities.

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First Milk Signs Export Deal With Eilers and Wheeler


First Milk, the largest dairy farmer-owned business in the UK, has set up a strategic alliance with Eilers and Wheeler, one of Europe’s most established suppliers of dairy products. Under the new arrangement, Eilers and Wheeler will be First Milk’s preferred partner for export sales of cheese and packet butter.

“Currently world markets are providing strong margins for UK dairy products and with most commentators predicting that global demand will continue, we recognised that we needed an experienced partner to drive our export sales,” explains Kate Allum, chief executive of First Milk. “Eilers and Wheeler has been particularly interested in the export potential of our products and brands, including the Lake District cheese company. We have agreed to move a growing percentage of our cheese make through this route and will evaluate progress on an ongoing basis.”

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New Dairy For Turkey


AB Holdings, which is one of Turkey’s largest food groups, is to build a new dairy products factory in Konya in the centre of the country, through its subsidiary Panagro. Construction of the new dairy, which will serve the Turkish and neighbouring markets, is scheduled to begin in early 2011.

The dairy is being designed by SPX, the provider of engineering, manufacturing and system solutions for the global food processing industry, under a $15m contract. The new dairy is expected to produce yoghurt and ayran (drinking yoghurt), as well as double cream cheese, cheddar, kashkaval and feta cheese, butter, milk produced with ultra-high temperature processes, demineralised whey, skimmed milk powders and fruit juices.

Plans include multiple solutions from SPX’s broad portfolio of branded processing technologies and solutions. Technologies include APV-branded automated thermal milk processing, fresh dairy processes, membrane and CIP (clean in place) technologies; Gerstenberg Schroder butter-making equipment; and Anhydro tubular evaporation and spray drying technologies.

The Panagro dairy will be designed from the ground up to be vertically integrated in a combined operation that includes an adjacent cattle farm and meat production facility.

“Nearly 30% of Turkey’s population of 70 million people are under the age of 30, and this is the highest percentage of young people among all European countries,” says Baydu Veznedaroglu, chief executive of AB Holdings. “To feed these children and young people with healthy foods, we should increase the number of dairy and meat plant investments in Turkey. Our country is also becoming a leading exporter of dairy products to the Middle East, and this dairy will play an instrumental role in our company’s plans for this region.”

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Danone and Unimilk Finalise Merger


Danone and Unimilk have completed the merger of their fresh dairy products businesses in Russia and other CIS member countries. The new entity, controlled by Danone with a 58% equity interest and in which former shareholders of Unimilk own 42%, is the new leader for dairy products in the CIS area. Russia is now Danone’s largest market.

The board of directors of the combined business comprises three members, including the chairman, Andrey Beskhmelnitsky, representing Unimilk, and four members, including Bernard Hours and Pierre-Andre Terisse, representing Danone.

Filip Kegels, previously general manager of Danone Fresh Dairy Products in Eastern Europe and Central Asia, is in charge of operational management.

An integration committee has been set up to coordinate Danone and Unimilk teams during the integration phase and ensure that business targets are met. The new entity will be consolidated in Danone financial statements from December 1st, 2010.

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World Dairy Market – China and India Increase Imports


Supply shortages are forcing China and India to raise their imports of dairy products, according to the latest Rabobank Global Dairy Outlook report. “The demand from these two giants will impact dairy processors, dairy farmers and dairy prices for the coming years,” says Tim Hunt of Rabobank Food & Agribusiness Research. Rabobank has now changed its view on the role of China and India in the world dairy market to 2014.

Dairy imports to China surged in 2009 following the melamine crisis as Chinese consumers looked for safer imported milk powders. Tim Hunt remarks: “Contrary to expectations, imports have pushed higher still in 2010. Some Chinese consumers still prefer imported products, despite official assurances that domestic supplies are safe. And it’s now clear that Chinese milk production levels fell below official figures in 2008 and 2009.”

As domestic demand for dairy rises at 5 to 6% year, China is facing a protracted market deficit. “The factors underpinning the major shift in Chinese dairy imports may last longer than anticipated. Which is why Rabobank has shifted its projections. We expect the higher dairy imports to continue for three more years, not 12-18 months as we previously predicted,” he remarks.

India has traditionally met local dairy demand from local production, but is now facing challenges to its self sufficiency. Demand for dairy products has increased rapidly with the rises in population, income levels and urbanisation. Poor monsoon seasons, and steadily rising cattle feed costs caused a slowdown in milk production last year. Butter actually disappeared from retail shelves for a month in 2009, forcing processors to buy in fats from the world market. “With a population of over 1 billion people, a small market shortfall in Indian terms represents substantial volumes for the international dairy trade. India’s ‘topping up’ of butterfat last year sent it straight into the world’s top-10 butterfat importers,” Tim Hunt: points out.

The Global Dairy Outlook presents three scenarios for the Indian dairy industry in the coming years. Tim Hunt explains: “Rabobank forecasts assume that India will be able to maintain self sufficiency in dairy in general. But it is likely to call on the world market for fats in poor seasons. And when India comes calling, the rest of the world will certainly feel its presence.”

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Welsh Dairy Industry Set For Greener Future


Welsh dairy farmers, processors, and retailers have reached an ambitious agreement to further reduce the environmental impact of milk and dairy products. The Welsh dairy industry has published a ‘Dairy Roadmap for Wales’, which clearly sets out targets for reducing the industry’s environmental footprint over the next ten years.

The document builds upon the work already undertaken in England with indicators and targets purposely kept as similar to the England Milk Roadmap as is possible. “Having parallel indicators and targets will assist the industry in measuring the achievements, impact and outcomes of the Roadmaps, although I will stress that Wales’ targets obviously take into account regional differences,” says Delyth Davies, head of dairy development Wales at Dairyco.

The Roadmap sets out practical actions, including medium and long term targets, to deliver a vision for reducing the environmental impacts of the dairy sector without adversely affecting its long-term sustainability.

The Dairy Roadmap for Wales is a ‘living document’ and will be regularly reviewed by stakeholders to include an official review in 2012 and a full report in 2015. Targets for 2020 include:

* farmers will recycle or reuse 70% of non-natural waste

* 40% of energy used on farm comes from renewable sources

* 20-30% reduction in greenhouse gas balance from farms, compared with 1990 levels

* 20% absolute reduction of water use for all processors

* 10% of processors’ non-transport energy to come from renewable sources or Combined Heat & Power/Tri-Generation

* All tertiary packaging to be recyclable or re-usable

* retailers to ensure that all new stores emit less carbon than existing one

* mandatory energy benchmarking for processors.

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Lactalis Acquisition of Puleva Dairy Cleared


The European Commission has cleared the proposed acquisition by the French group Lactalis of Spanish group Ebro Puleva’s dairy business. The Commission concluded that the transaction would not significantly impede effective competition in Europe or Spain.

Lactalis manufactures and sells milk and dairy products, including a wide range of cheese, desserts and cream, in roughly 150 countries, under its own brand names and under those of distributors. Via its subsidiary, Lactalis Iberia, Lactalis operates on the Spanish market, where it sells cheese and long-life milk

Ebro Puleva produces and sells rice, pasta, sauces and dairy products.

The Commission’s investigation concerned the supply of raw cow’s milk in Spain and the downstream markets of sales of basic long-life milk, flavoured milk, health drinks, liquid cream and ‘horchata’, a drink made from tiger nuts.

The Eur630m deal increases Lactalis Group’s sales in Spain to Eur1.2b and consolidates its standing as one of the world’s leading dairy companies. Having last year disposed of its sugar business to Associated British Foods for Eur526m, Ebro Puleva is now focused on its rice and pasta activities.

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Changing Demographics Will Provide Growth Opportunities for Dairy Industry


Changing demographics will have an impact on the types of dairy products people consume and how they consume them, providing new growth opportunities for the dairy industry, according to the latest edition of the Tetra Pak Dairy Index.

Ageing populations, urbanisation and an emerging global middle class are driving demand for new types of liquid dairy products (LDP) in both developed and developing countries, reports the Tetra Pak newsletter, which tracks worldwide facts, figures and trends in the global dairy industry. Among the trends the report details are:

* Ageing population drives demand for healthy products: The 60+ population is the fastest growing segment in every region of the world due to lower birth rates and higher life expectancy. Dairy producers in countries from Mexico to Greece to Indonesia are offering these consumers products such as milk fortified with calcium, vitamins and minerals that can help reduce cholesterol and protect against osteoporosis — all helping to maintain active lifestyles.

* Urbanisation changes consumer preferences and impacts distribution of LDP: The number of people living in cities is expected to reach more than six billion by 2050 and they are better educated, more brand conscious and have higher disposable incomes than their rural counterparts, according to the United Nations. Dairy producers are starting to cater their products to this group with value-added products such as enriched milk and drinking yoghurt. Urbanisation is also changing distribution models. In Saudi Arabia, for example, dairy producers are now delivering LDP from the countryside to growing urban populations.

* Emerging middle class enjoys new purchasing power: The global middle class is projected to grow from 430 million people in 2000 to 1.15 billion by 2030. These consumers want and can afford other liquid dairy products, such as flavoured milk, to satisfy new food and drink preferences. In China, for example, marketers exclusively target the country’s middle class with premium white milk products such as Milk Deluxe from MengNiu.

“The population in many countries will have more time, money and education than ever before. They’ll also be more active and vibrant. As people live longer, they also plan their lives differently. Dairy producers who can meet the changing needs of this demographic segment will realise significant growth opportunities,” says Tetra Pak president and chief executive Dennis Jönsson.

LDP Consumption Back on Track

Worldwide consumption of milk and other LDP is expected to grow at a compound annual growth rate (CAGR) of 2.4% from 2009 to 2012 — reaching 283 billion litres. This is up 0.2 percentage points compared to the previous forecast of 2.2% CAGR. Worldwide LDP consumption increased year-on-year by 1.8% to 264 billion litres and demand has continued to be strong through the first half of 2010.

Driven primarily by ready to drink (RTD) ambient (or long-life) LDP — with a forecasted CAGR of 5.4% from 2009 to 2012 — global LDP consumption is expected to reach 283 billion litres by 2012. The strongest growth in the RTD ambient LDP category is expected to come from Asia Pacific (8.7% CAGR), Latin America (7.1% CAGR) and Africa (6.9% CAGR).

Stronger-than-expected global consumption of ambient white milk — up 1.3% to 201 billion litres year-on-year — contributed to the improved outlook for LDP consumption overall. Eastern Europe and Africa led the increase in the white milk category, with year-on-year growth of 6.6% and 6.0% respectively.

“It’s a dynamic time in the dairy industry — with milk, as an affordable and nutritious staple, becoming part of the daily diet of more and more people around the world,” point out Dennis Jönsson.

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