The support prices for UK butter skimmed milk powder were pushed higher by the weak pound during December.
The butter intervention price rose on average by £30 per tonne on the November level to £2,073 per tonne.
Similarly, the support price for skimmed milk powder was up by £20 to £1,442 per tonne.
These are the highest levels seen since last June and are dramatically higher than they were at the beginning of 2003.
With butter, for example, the price rose by £134 per tonne or 7% from an opening level of £1,939 per tonne a year ago. Skim milk powder has risen over the year by £107 per tonne from last January’s level of £1,349 per tonne.
Currently, there are no signs of any easing of these high December levels. If anything, they have climbed slightly higher and will continue to keep UK commodity dairy prices high over the next few weeks.
UK confidence
Industrial turmoil in Italy, involving one of the major tomato processors, is having an effect on the UK market.
There have been no reports of supply problems but
importers are watching the position very closely.
The pack last year of 5.2 million tonnes compares favourably with the previous season of 4.2 million tonnes but was just about adequate to cover demand, hence some apprehension that if supplies are cut, retailer brand contracts could be at risk. Suppliers remain confident, however.
Argentina, which last year became a major fill-in source after the 2002 Italy failure, is offering at similar prices to last season but with few takers.
Milk link buy
Farmer owned dairy co-operative Milk Link has bought Cornish processor Newlands Farm. The 100% acquisition of the Liskeard-based business was for an undisclosed sum.
Newlands is the producer of The Cornish Dairy brand sold through Tesco stores in the south west. The co-op said the move provided it with the opportunity to develop branded opportunities in consumer products.
Milk Link’s chief executive Barry Nicholls said: “The acquisition of Newlands Farm further establishes Milk Link as the UK’s leading farmer-owned integrated dairy business.”
The acquired company will be run as a standalone business managed by existing management.
Port blockage
Brazilian canned meat importers are under fire from retailers due to a lack of stock caused by ongoing administrative problems.
The problems have arisen due to incorrect Public & Animal Health certificates from Brazil. Errors have forced the Port Health Authorities at all UK ports to refuse entry of the goods into the UK.
These errors have occurred as a result of changes between the Brazilian authorities and EU to the arrangements for issuing these certificates in Brazil.
The system involves downloading forms from a website but flawed software has resulted in the wrong forms being sent out. The Brazilian ministry of agriculture has now corrected the problem.
The butter intervention price rose on average by £30 per tonne on the November level to £2,073 per tonne.
Similarly, the support price for skimmed milk powder was up by £20 to £1,442 per tonne.
These are the highest levels seen since last June and are dramatically higher than they were at the beginning of 2003.
With butter, for example, the price rose by £134 per tonne or 7% from an opening level of £1,939 per tonne a year ago. Skim milk powder has risen over the year by £107 per tonne from last January’s level of £1,349 per tonne.
Currently, there are no signs of any easing of these high December levels. If anything, they have climbed slightly higher and will continue to keep UK commodity dairy prices high over the next few weeks.
UK confidence
Industrial turmoil in Italy, involving one of the major tomato processors, is having an effect on the UK market.
There have been no reports of supply problems but
importers are watching the position very closely.
The pack last year of 5.2 million tonnes compares favourably with the previous season of 4.2 million tonnes but was just about adequate to cover demand, hence some apprehension that if supplies are cut, retailer brand contracts could be at risk. Suppliers remain confident, however.
Argentina, which last year became a major fill-in source after the 2002 Italy failure, is offering at similar prices to last season but with few takers.
Milk link buy
Farmer owned dairy co-operative Milk Link has bought Cornish processor Newlands Farm. The 100% acquisition of the Liskeard-based business was for an undisclosed sum.
Newlands is the producer of The Cornish Dairy brand sold through Tesco stores in the south west. The co-op said the move provided it with the opportunity to develop branded opportunities in consumer products.
Milk Link’s chief executive Barry Nicholls said: “The acquisition of Newlands Farm further establishes Milk Link as the UK’s leading farmer-owned integrated dairy business.”
The acquired company will be run as a standalone business managed by existing management.
Port blockage
Brazilian canned meat importers are under fire from retailers due to a lack of stock caused by ongoing administrative problems.
The problems have arisen due to incorrect Public & Animal Health certificates from Brazil. Errors have forced the Port Health Authorities at all UK ports to refuse entry of the goods into the UK.
These errors have occurred as a result of changes between the Brazilian authorities and EU to the arrangements for issuing these certificates in Brazil.
The system involves downloading forms from a website but flawed software has resulted in the wrong forms being sent out. The Brazilian ministry of agriculture has now corrected the problem.
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