Skimmed milk prices firm up in international market

 As skimmed milk powder (SMP) prices firm up in GlobalDairy Trade auctions mid-August, after five months of consecutive falls, it opens up opportunities for Indian exporters to look at international markets in the medium term.

India has hardly exported any SMP consignments this year owing to low prices in the global market, which, in turn, has also kept the domestic liquid milk prices in check. Firming up of prices in the international circuit could help reduce the 30,000 tonnes of SMP inventory lying in the country and eventually put pressure on retail milk prices here, feel players.

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In the August 18 auction at GDT (Global Dairy Trade), which is an auction platform for internationally traded commodity dairy products, the prices of SMP have gone up by 8.5 per cent compared to the previous event, taking the average price to $1,521 per tonne. As such the GDT Price Index, a weighted average of percentage changes in prices, increased by 14.8 per cent in the August 18 auction, with the average selling price of $1,974 per tonne. Auctions for dairy products, including SMP, whole-milk powder (WMP), butter, butter milk powder, anhydrous milk fat, etc., are held twice a month.

R G Chandramogan, managing director of Tamil Nadu-based Hatsun Agro, a leading private dairy player in the region, felt that with this rise in international prices, the sentiments are likely to improve.

"While exports are not expected to pick up immediately, however, over the next two to three months, they are set to rise. Prices are around Rs 170 a kg now, and exporters would be very bullish once they cross the Rs 200-210 per kg mark," he said. Chandramogan added that Indian exports around 80,000 tonnes of SMP per year, and last year the country exported next to nothing.

Most of the SMP was re-converted to liquid milk, which helped with the supply situation in the domestic market.

With prices now on the rise, exporters would eye the international market. This coupled with the draught-like situation in Maharashtra, and the lean season setting in states such as Tamil Nadu, Karnataka and Maharashtra, affecting the availability of milk, is set to put pressure on domestic prices. As Chandramogan explained, "Milk procurement is already down 20 per cent in the cow belt, compared to the peak season."

R S Sodhi, managing director of the country's largest dairy cooperative Gujarat Cooperative Milk Marketing Federation (GCMMF), however, pointed out that it would take a while before the exporters are upbeat on international prices. "We are exporting to some of our international customers who insist for our products at around $3,400 per tonne. But, in terms of volumes, this is hardly more than a few hundred tonnes." He, however, highlighted that with winters (flush season for milk) approaching, this year might not see a lot of price increases in the domestic market. "The situation would be tough next summer," Sodhi said, adding growth in procurement is lower at 4-5 per cent this year in Gujarat, compared to a 14-15 per cent growth earlier. GCMMF procures 15 million litres per day across India.

GCMMF had exported around 20,000 tonnes of SMP in 2013-14, when the prices in the international circuit were high. It raised prices in June this year after a long hiatus of 13 months owing to increase in input costs. Unorganised milk players had raised prices in Mumbai city around April, followed by Mahanand and Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd (which sells milk and milk products under the Gokul brand) raising prices in May on account of pressure from the retailer lobby.

Resource : http://www.business-standard.com/article/markets/skimmed-milk-prices-firm-up-in-international-market-115082200581_1.html

Pick up in the sale of EU milk powder into intervention

There has been a significant increase in the last three weeks of European countries selling milk powder into public intervention, according to latest figures from the Milk Market Observatory (MMO).

Back in early July 2015, Lithuania became the first country to use public intervention following the latest downturn in dairy prices.

Over the next few months, it was joined by a host of EU Member States including Ireland in using the instrument.

The first week of September saw the use of the measure peak with over 3,000t of skimmed milk powder (SMP) sold into intervention in that week.

Through late September and October, the use of pubic intervention by Member States had been declining significantly cumulating in no product being sold under the measure by early November.

The fall in the use of intervention at the time coincided with somewhat of a pick up in dairy markets.

However, more recently the use of public intervention for skimmed milk powder by Member States has ramped up again.

The first week of this month (January 2016) saw the highest amount of product offered to public intervention in the last 12 months (3700t). Offer quantities were also high in the latter weeks of December 2015 with in excess of 3000t a week also offered.

The European Commission had signalled in recent months that its assessment of EU stock levels based on a residual approach (production + imports – consumption – exports) confirmed important stocks for SMP, above normal needs and with no reduction in the July-September period against the normal seasonal pattern.

According to the MMO, these stocks might weigh heavily on the market at the beginning of 2016 when EU milk production starts to rally for peak production.

Resource : https://www.agriland.ie/farming-news/pick-up-in-the-sale-of-eu-milk-powder-into-intervention/

Full ownership of Westbury Dairies Limited transfers to Arla

Full ownership of Westbury Dairies Limited, the joint venture between Arla and First Milk, has transferred to Arla.
The joint venture company operates the country’s most modern skimmed milk powder and bulk butter production facility.

Taking full ownership of the joint venture is a strategic move for Arla and a natural step to providing the business with an opportunity to optimise its manufacturing footprint in the UK.

Commenting on the announcement, Peter Giørtz-Carlsen, Executive Vice President, Arla Foods UK, said: “We are pleased to have come to this agreement. Arla has just launched Strategy 2020 in which we aim to grow our business in eight global dairy categories and six market regions around the world. The Westbury site is now an integral part of that global network of Arla production sites and will benefit from being so, further helping the UK to play an even more significant role in our global strategy.”


First Milk will continue to have access to Westbury’s powder drying capacity


The news is a further step for First Milk in reshaping its business. The agreement announced today will enable First Milk to continue to have access to the powder drying capacity at the Westbury site during peak milk production and at other pre-defined times of the year.

Mike Gallacher, First Milk Chief Executive, added: “I am delighted to announce this significant step in the reshaping of First Milk around our core Cheese and Liquid business. This follows recent announcements of our return to trading profit, the establishment of a new Board and Governance structure, and the sale in December of the Glenfield Dairy subsidiary.

“While the dairy industry remains exceptionally tough, the progress we have made over the last nine months gives us the platform to focus this year on improving the relative returns to our members.

“We have worked very closely with Arla to reach this agreement and continue to see this as an important trading relationship for First Milk.”

Resource :  http://www.newfoodmagazine.com/21868/news/industry-news/full-ownership-of-westbury-dairies-limited-transfers-to-arla/

Ireland is back putting milk powder into intervention

Ireland last week offered dairy product into intervention for the first time since early October.

According to statistics from the Milk Market Observatory, Ireland offered 170t of Skimmed Milk Powder to EU public intervention last week.
Dairy product prices continue to be at low levels both on European and world markets. This week many Irish dairy co-ops held their base milk prices at in the region of 25c/L.
Since it first used the mechanism in September of 2015 Ireland has now offered over 2,000t of Skimmed Milk Powder to public intervention.

Last week the use of intervention by EU member states almost doubled to over 6,300t.
There has been a significant increase in the last three weeks of European countries selling milk powder into public intervention, according to latest figures from the Milk Market Observatory (MMO).
Back in early July 2015, Lithuania became the first country to use public intervention following the latest downturn in dairy prices.

Over the next few months, it was joined by a host of EU Member States including Ireland in using the instrument.The first week of September saw the use of the measure peak with over 3,000t of skimmed milk powder (SMP) sold into intervention in that week.Through late September and October, the use of pubic intervention by Member States had been declining significantly cumulating in no product being sold under the measure by early November.
The fall in the use of intervention at the time coincided with somewhat of a pick up in dairy markets.
However, more recently the use of public intervention for skimmed milk powder by Member States has ramped up again.

Last week saw the highest amount of product offered to public intervention in the last 12 months (6300t). Offer quantities were also high in the latter weeks of December 2015 with in excess of 3000t a week also offered.
Resource :  https://www.agriland.ie/farming-news/ireland-is-back-putting-milk-powder-into-intervention/

Ireland back supplying skimmed milk powder to EU intervention scheme

The latest figures from the European Commission indicate Ireland is back offering skimmed milk powder (SMP) to public intervention after a break of over three months, writes Shane Murphy.

The observatory report indicates Ireland offered 170t of SMP to public intervention on the week beginning January 4. This the first time since early October.

This comes in line with other member states also increasing product offered. For instance, the UK has used intervention for the first time in five months. Intervention flows have steadily crept up over the last six weeks, with last week seeing the biggest jump, from 3,748t to 6,359t. Belgium accounted for nearly one third of this, with 2,182t offered.

Private storage

The private storage aid (PSA) scheme is telling a similar story, with dairy products offered by countries on the increase. Butter quantity offered into private storage the first week of 2016 by the combined 28 EU member states was more than double that of the previous week. SMP with storage periods of both 365 days and less than 210 days also saw an increase.

Ireland did not offer butter or SMP into private storage.

Cheese in private storage aid continued the trend, increasing to 636t offered across the EU, compared with none the previous week. Ireland met its quota for cheese storage after the first week of the PSA scheme back in October, when 1,850t were offered.

Resource :  http://www.farmersjournal.ie/ireland-back-supplying-skimmed-milk-powder-to-eu-intervention-scheme-197976/

Desi superfoods available at your local grocery

With various products like sprouted bread and high-protein ice cream popping up on the shelves and into the freezers of grocery stores in the West, there leaves plenty to be desired for us living in India. Oh how much easier it would be to eat healthy if we had such innovative healthy options available! Fortunately we do have a huge variety available to us. The only difference is that they aren't marketed as being 'healthy' or covered in buzzwords like 'paleo-friendly' or 'vegan'. If you want to nourish your body, look no further than your local grocer:

Haldi (aka turmeric) Commonly used in Indian cooking, this spice boasts a number of health benefits including diabetes control, arthritis relief and protection against certain liver diseases.

Alsi (aka flaxseed) Due to its content of omega 3 essential fatty acids, consuming one tablespoon of flaxseeds daily can help boost heart health. Its omega 3 content can also help reduce inflammation within the body. To reap the benefits of this superfood, be sure to consume flaxseeds in ground form rather than whole. Whereas whole flaxseed tends to get passed through the body, ground flaxseed is easier for the body to digest.


Nariyal Pani (aka Coconut water) Put down the sugar-filled energy drink and instead load up on coconut water for instant hydration. Especially as it is filled with potassium, magnesium, sodium, phosphorus, and calcium. Sipping on coconut water will help replenish electrolytes lost from your body during a workout and/or in warmer temperatures.


Besan Flour (aka chickpea or gram flour) Open up your pantry and chances are you will have a packet of besan flour tucked away. Made from ground chickpeas, besan flour is naturally higher in protein than wheat-based flours: ½ up contains 10g of protein whereas the same amount of wheat flour racks-in 8g of protein. Although red meat is often associated with iron, besan flour contains that mineral, along with magnesium and phosphorus.


Ghee (aka clarified butter) Modern scientists in the West are now saying what our grandmothers have preached for decades. Although feared as a high-fat food, ghee provides a hefty dose of antioxidants including carotenoids and vitamins A and E. These antioxidants fight free radicals and promote skin cell growth, good vision and immune system health, and also reduce the risk of certain cancers and heart disease. As the method of clarifying butter into ghee removes the lactose and casein content, those who are lactose intolerant can enjoy ghee without suffering any adverse reactions.


While India may not be currently full of trendy health stores, it still remains to be quite the goldmine when it comes to healthy options. Happy shopping!


Khusbhoo Thadani HuffingtonPost.in


Resource:  http://timesofindia.indiatimes.com/life-style/health-fitness/diet/Desi-superfoods-available-at-your-local-grocery/articleshow/46056321.cms

Ministry seeks subsidy to facilitate milk exports

The Ministry of Agriculture Development has requested the Finance Ministry to provide a subsidy of Rs16.09 million to facilitate exports of surplus milk to India. Due to low domestic demand, Nepal sees a surplus milk of 30,000 litres each day.

As dairy producers had been told to use the surplus milk to produce ghee and other dairy products, they now have a massive stock of ghee and powdered milk. Worried, the dairies have stopped buying milk amid a slowdown in sales after the April 25 earthquake.

As cheaper imports from India has made Nepali products uncompetitive (Nepali milk is expensive by Rs5.96 per litre compared to Indian product), the farmers have been demanding subsidy to export their produce to prevent a milk holiday.

The Dairy Development Board had even urged the government to stop imports of dairy products for at least six months. According to the Nepal Dairy Association, privately-owned dairies have 1,200 tonnes of powdered milk and 1,400 tonnes of butter in stock.

Amid concerns the imported products have been hurting the domestic market, the government has raised customs duty on ghee- and milk-related products to 20 percent from 15 percent. Traders said Nepali ghee could not compete with Indian ghee like Patanjali that are available at cheaper rates.

“As the increased custom duty is not sufficient to discourage imports, we have requested the Finance Ministry to farther increase the duty on powdered milk imports and make customs valuation as per the changing contexts,” said Uttam Kumar Bhattarai, secretary at the agriculture ministry. “Besides, we have requested the Finance Ministry to provide 90 percent VAT exemption on milk products.” 

However, consumer rights activists and private dairies have been demanding lowering the prices of dairy products to promote consumption during the flush season. “The government itself has created the situation of milk holiday. The state-owned Dairy Development Corporation’s decision to increase the price of milk by Rs8 per litre was wrong as the international prices were falling then,” said Prem Lal Maharjan, president of National Consumer Forum.
Pradeep Maharjan, president of Dairy Industries Nepal, said the problem of milk

holiday would be solved if the government introduced seasonal pricing mechanism.

“The main problem is the milk price is high in Nepal compared to any other country this time. This is the reason that our other products like ghee and powdered milk are not competitive,” he said.
He said the government should slash the prices during the peak season, which ultimately increases consumption and also protect domestic industries. The country’s largest powdered milk plant, Chitwan Milk, has been closed as it has not been able to compete with imported products.

Resource:  http://kathmandupost.ekantipur.com/news/2015-09-05/ministry-seeks-subsidy-to-facilitate-milk-exports.html