Devondaler-March-2015

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2 MARCH 2015 DEVONDALE MURRAY GOULBURN INTERNATIONAL MARKET REVIEW Prices are up in all product categories International prices $US/MT FOB The results of Global Dairy Trade (GDT) Event 134 which concluded on 17 February produced a GDT Price Index which was up by 10.1 per cent. Prices increased in all categories where product was offered. This is the fifth consecutive increase in the Trade Weighted Index (TWI) on the GDT platform and the second major increase following a 9.4 per cent increase registered on Event 133 which was held on 3 February. While the improvement in pricing on the GDT platform is welcome, we believe it has been brought about as a reaction to the drought in New Zealand and the potential impact that this may have on the global supply-demand balance in dairy. The recent major reductions in volume offered through the GDT platform has been based on anticipated reduction in NZ milk The Devondaler is published by Devondale Murray Goulburn Editor: Robert White (03) 9846 5188 or 0427 329 815 tophill@optusnet.com.au Advertising and classified enquiries: (03) 9040 5000 Murray Goulburn Co-operative Co. Limited, Level 15, 2 Southbank Boulevard, Southbank, Victoria 3006 Phone: (03) 9040 5000 MG suppliers and employees are welcome to submit photograps and editorial for consideration. Deadline is the 24th of each month. The Devondale Murray Goulburn Twitter account is online now at @DevondaleMG production which may have been responsible for price recovery on the platform. The medium term response, however, will depend on actual milk production statistics and how this compares to the expected decreases which have been widely reported. The milk production forecast for the current season in NZ is expected to be 3.3 per cent below last season as a result of the current drought, in combination with lower milk prices which discourages supplementary feeding. Season-to-date milk volumes are ahead of last year, although the rate of growth is slowing due to the dry conditions. Daily milk production across NZ is now eight per cent lower than the same period last season. Milk production in the 23 major States in USA during January was up 2.1 per cent compared to January 2014 with the medium term outlook for Key results MAIN PRODUCTS SMP up 5.7%, average price $US2744/MT WMP up 13.7%, average price $US3272/MT AMF up 6.4%, average price $4314/MT OTHER PRODUCTS Butter up 1.1%, average price $US3823/MT BMP up 1.9%, average price $US2674MT Cheddar up 16.8%, average price $US3054/MT Rennet Casein up 1.2%, average price $8US,97/MT SWP (Sweet Whey Powder) – No sale reported. The results of the next few GTD auction events will provide a better indication of the global response to availability versus demand for dairy and the outlook for pricing over the balance of this season. sustained growth while domestic demand remains stable. Milk production per cow in USA is also at a record high and bolstered by lower feed costs. The recent introduction of margin protection insurance in USA is of concern as this will allow farmers to lock in a margin and keep producing even when market prices are falling, which would normally be a signal to reduce production. European Union (EU) milk production has slowed as farm gates prices have dropped and producers seek to avoid penalties for producing in excess of quotas at the end of March. Post March, the gloves are off with quotas being abolished. The question remains as to how much the EU will gear up milk production and the impact of potential surpluses on the international market. On a positive note, EU commodity prices have recently started to firm in Euro terms which signals a recovery is under way. Mixed messages are coming out of China regarding the underlying demand for dairy once surplus stocks have been exhausted. We have received feedback that there are still exports of FCMP from China suggesting that internal stock problems have not yet been brought under control. We will continue to monitor this situation. The results of the next few GTD auction events will provide a better indication of the global response to availability versus demand for dairy and the outlook for pricing over the balance of this season. Suppliers’ meetings across three states THE first round of Devondale Murray Goulburn suppliers’ meetings for 2015 will be held in Victoria, New South Wales and South Australia during March. DATE VENUE TIME VICTORIA March 16 Maffra Football Club Noon-2pm Yarram and District 7.30-930pm. Health Services March 17 Leongatha Football Club 11.45am-1.45pm Heywood Football Club 7.30-9.30pm March 18 Camperdown Civic 12.30-2.30pm Centre Cohuna Bowls Club 7.30-9.30pm March 19 Rochester Racecourse 11.30am-1.30pm Reserve Cobram/Barooga Sports 7.30-9.30pm Club March 20 Kiewa Coulston Park Noon-2pm. Community Centre SOUTH AUSTRALIA March 23 Encounter Bay Football 11.30am-1.30pm Club March 24 Nuriootpa PIRSA 11.30am-1.30pm Building NEW SOUTH WALES March 23 Club Taree 11.30am-1.30pm Singleton Diggers Club 7.30-9.30pm March 24 Gerroa Boat Fishing Club 12.30-2.30pm Kiama
DEVONDALE MURRAY GOULBURN MARCH 2015 3 MG Trading moves into Tasmania TWO new MG Trading stores are now open at Smithton and Deloraine in north west Tasmania. Devondale Murray Goulburn has bought Tasmanian agricultural services business AgriCorp Pacific Pty Ltd (AgriCorp) and as part of the acquisition, existing AgriCorp locations were rebranded as MG Trading on Monday 2 March. MG Trading’s arrival in Tasmania will significantly expand services available to support dairy farmers, as well as the agricultural industries and communities in the state. MG is working alongside AgriCorp to ensure a smooth Tasmania is at the forefront of Australian dairy industry growth and we saw a significant opportunity to support our dairy farmer suppliers. ROBERT POOLE transition, including welcoming all team members currently employed at the Smithton and Deloraine stores to MG Trading. The company looks forward to building on the solid customer, community and vendor relationships established by AgriCorp. MG’s Executive General Manager Shareholder Relations, Robert Poole, said the acquisition formed part of the farmercontrolled co-operative’s ongoing commitment to and investment in Tasmania. “Through our majority-owned joint venture, Tasmanian Dairy Products, in Smithton and our manufacturing site at Edith Creek, we’re delighted to play an active role in helping to develop Tasmania’s dairy industry,” he said. “Tasmania is at the forefront of Australian dairy industry growth and we saw a significant opportunity to support our dairy farmer suppliers, as well as the broader agricultural industries and communities through MG Trading’s extensive and competitively priced retail offering.” AgriCorp’s Managing Director, Colin Cook, said the arrangement would benefit local farmers and both MG Trading and AgriCorp would ensure customers were kept abreast of changes during the transition period. “AgriCorp’s mandate was always to grow farm productivity through professional advisory services and a tailored product offering,” Colin said. “We leave this legacy in safe hands through our agreement with MG whose MG Trading presence and farmer services are highly regarded by farmers on the mainland, not only for their strength in dairy, but also for their interests in the broader agricultural industries.” The new MG Trading stores in Tasmania are ideally located to support farmers in the state’s north and north-west. Planning is under way to further expand the service offering in the two stores to include fertiliser, agronomy, nutrition, feed, fuel, milk machine maintenance, insurance and finance services. Top award for Devondale Smoothies DEVONDALE Smoothies has been named the top Chilled Beverage in the 2015 Product of the Year (POY) awards, held last month. Leading research company, Nielsen, surveyed more than 15,000 consumers for the country’s largest independent survey of household consumer innovation, which reviews new products against criteria such as trial performance, value for money and overall satisfaction. The 44 winning products in their respective categories represent the most exciting new products on the Australian market today. Devondale Smoothies won in the Chilled Beverages category. POY Australia Director, Sarah Connelly, said the annual survey, which had been running for six years, is the nation’s ultimate consumer poll. “Winning Product of the Year is a huge stamp of approval from the Australian public,” she said. “To win Product of the Year is a huge honour for any product because it means that the Australian public has embraced and loved the product. “To triumph as the winner is a testament to the time and effort put in by manufacturers, retailers and their hard working staff to deliver something truly innovative and relevant to consumers,” she said. Details from the award show that one in three consumers claimed they are more likely to buy new products that won POY. Other winners included the likes of Coles Ice Cream and Woolworths’ Made with Jamie products. MG’s Brand Manager innovation, Joanna Teoludzka with television personality, Lisa Wilkinson, who was a guest presenter at the awards night. Pedal power helps charity THE Devondalers cycling team is off and pedaling again this year and will take part in the annual Murray to Moyne bicycle ride. The team is made up of members of the factory health group at the Devondale Murray Goulburn plant at Koroit. The annual ride helps raise money for local health organisations and the Koroit team is again raising funds for the Hawkesdale CERT (Critical Emergency Response Team) which attends accident before ambulances get to the scene. It is the fourth year that the Devondalers have taken part in the ride which this year will travel from Echuca to Port Fairy. The ride will be held on the weekend of 28-29 March and about 100 teams with 1600 riders leave from three towns (Mildura, Swan Hill, Echuca) and all head for Hamilton overnight before setting off for Port Fairy on the Sunday morning. Those who would like to donate to the cause can visit the Murray to Moyne website, choose the Devondalers team, and donate under that name. MG $6 milk price is confirmed ● From page 1 “A component of the increase is related to our ongoing investment program including manufacturing upgrades and the construction of our new consumer cheese plant at Cobram,” Gary said. “We remain confident of the long term underlying growth in demand for dairy foods, particularly in Asia, where there is a net reliability on imports to satisfy rising consumer demand for dairy foods.” “The lower Australian dollar, expected lower production in some key competing countries and signs of recovery in global ingredients prices are all positive signs for the coming period.”
Page 1: Volume 30 Number 3 Issue No. 349 Ma
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Devondaler-March-2015

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