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