The continued strength of the euro has led to price rises for UK butter and cheese. The average UK intervention price for bulk butter in the first week of June has moved up to over £2,100 per tonne, about 10% higher than in January and 4% up on April. While more UK butter is being produced than at the same time last year, supplies are meeting a ready market on the Continent because of the currency situation. UK buyers last week were having to pay at least £2,100 per tonne for their bulk supplies.
Cheddar cheese prices are also tending to firm with mild cheese now commanding prices close to £2,000 per tonne, about £50 per tonne up over the past month. Even at these prices Cheddar makers face the problem that butter makers can now pay a higher milk price to their farmers.
n cornish backing
Tesco has announced plans to sell and promote local milk in all its Cornish stores.
The milk will be sourced from local dairy farms as well as being processed, packaged and distributed in Cornwall.
Supplied to Tesco under the Cornish Dairy brand by Newlands Farm, the milk will be in store from Monday June 16.
Farmer Neil Badock said: "This is not only good news for us, but for the whole of Cornwall it will give a real boost to the local economy. We are confident this will be a success."
n formula change
New European meat regulations are now having an effect on corned beef supplies from South America.
Legislation covering the raw material used for some of the lower grades has resulted in formula changes which canners say is costing $2 more per case of 24x340g. As a result, Brazil and Argentina are now asking for higher fob prices which will be felt later in the year, although strong sterling will offset some of the increase. Dutch and Irish ham prices have already risen in line with higher raw material costs forced by the reformulations.
Hardest hit have been hot dogs and similar products, but a spate of cut-price retail promotions has meant consumers will not feel the impact for a few weeks.
n alaskan relief
Alaskan salmon processors have expressed relief after winning their case against allegations of price fixing.
"We still have an industry," was how one canner reacted.
Had the case, brought by fishermen, gone the other way, this year's pack could have been under threat, but with the jury's verdict it will be business as usual. During the four-month trial in Anchorage, the salmon processors maintained there had never been any price-fixing against the fishermen.
The court accepted that the dramatic fall in prices was due to intense competition from farmed salmon, with Chilean suppliers cited as a major contributor.
Some defendants had paid over $40m to be excluded from the case, so arguments will now ensue as to how this money, currently in escrow, will be used.
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Cheddar cheese prices are also tending to firm with mild cheese now commanding prices close to £2,000 per tonne, about £50 per tonne up over the past month. Even at these prices Cheddar makers face the problem that butter makers can now pay a higher milk price to their farmers.
n cornish backing
Tesco has announced plans to sell and promote local milk in all its Cornish stores.
The milk will be sourced from local dairy farms as well as being processed, packaged and distributed in Cornwall.
Supplied to Tesco under the Cornish Dairy brand by Newlands Farm, the milk will be in store from Monday June 16.
Farmer Neil Badock said: "This is not only good news for us, but for the whole of Cornwall it will give a real boost to the local economy. We are confident this will be a success."
n formula change
New European meat regulations are now having an effect on corned beef supplies from South America.
Legislation covering the raw material used for some of the lower grades has resulted in formula changes which canners say is costing $2 more per case of 24x340g. As a result, Brazil and Argentina are now asking for higher fob prices which will be felt later in the year, although strong sterling will offset some of the increase. Dutch and Irish ham prices have already risen in line with higher raw material costs forced by the reformulations.
Hardest hit have been hot dogs and similar products, but a spate of cut-price retail promotions has meant consumers will not feel the impact for a few weeks.
n alaskan relief
Alaskan salmon processors have expressed relief after winning their case against allegations of price fixing.
"We still have an industry," was how one canner reacted.
Had the case, brought by fishermen, gone the other way, this year's pack could have been under threat, but with the jury's verdict it will be business as usual. During the four-month trial in Anchorage, the salmon processors maintained there had never been any price-fixing against the fishermen.
The court accepted that the dramatic fall in prices was due to intense competition from farmed salmon, with Chilean suppliers cited as a major contributor.
Some defendants had paid over $40m to be excluded from the case, so arguments will now ensue as to how this money, currently in escrow, will be used.
{{MARKET EDGE }}
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