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Dairy Australia Fortnightly Update 18/10/2013

Dairy Australia

Categories: Dairy, Commodities

Key points for the fortnight ending 18/10/2013 include:

  • GlobalDairyTrade (GDT) event 102 saw a modest retreat in prices overall, with the GDT Price Index easing 1.9%.
  • The European Commission has recently released its latest Short Term Outlook for grain, meat and dairy markets in the EU-28, highlighting the likelihood that increased milk prices will stimulate a production recovery in the second half of 2013 and growth of 1.1% in 2014.
  • The takeover contest for Warrnambool Cheese & Butter (WCB) intensifies: Saputo (SAP) came in with a $7.00 bid (8 October) - unanimously approved by WCB’s board in the absence of a ‘superior offer’—and this morning MG upped the ante with a $7.50 cash bid.
  • Toronto-listed SAP has long desired to gain a foothold in Australia and thereby access Asian growth opportunities
  • Parmalat are lifting farmgate prices for Victorian and South Australian suppliers.
  • UDP announced a ‘step-up/loyalty payment’ of 20c/kg fat and 40c/kg protein and stated that it was aiming for a closing price 10% above $6.40kg milk solids

Source: Dairy Australia

 

Disclaimer: Whilst all care has been taken in compiling the information, the information should not be relied upon as substitute for professional advice where necessary. Rural Bank Limited accepts no responsibility for the accuracy, completeness or timeliness of the information and disclaims all liability in relation to any loss or damage suffered by the use of or reliance upon any information contained herein or in any attachment or annexure hereto by any person. Rural Bank Limited ABN 74 083 938 416 AFSL 238042.