DENMARK: Dairy markets calmer, says Arla chief
Dairy markets are returning to normal after months of supply-driven high prices, according to the managing director of Arla Foods.
The soaring prices of dairy commodities have hit profits at a swathe of packaged food companies and led Arla to pay out DKK4.8bn (US$946m) more to its suppliers.
"We've never experienced such price increases on our unprocessed products before. Increases have costs us billions of crowns," Peder Tuborgh told a conference of Denmark's farmers' organisation, Dansk Landbrug.
However, Tuborgh sees some light at the end of the tunnel. The summer of turbulence had restored Arla's competitiveness, he said.
Tuborgh said Arla's 8,800 Danish and Swedish cooperative suppliers had received increases totalling DKK0.8 per litre since August. Now, however, bulk dairy product prices were retreating, while butter and yoghurt prices were still rising, Tuborgh said.
"So all in all we're quickly getting back to a normal situation where it's more profitable to sell processed products," said Tuborgh.
Milk suppliers are still leaving Arla, however, tempted by higher prices offered in Germany. Some 187 have torn up their contracts, taking 300m litres of milk with them.
Arla Foods is eyeing growing demand in Argentina for low-fat cheeses with plans to step up investment at its production facility in the country....
Morrisons has secured an out-of-court settlement from the Office of Fair Trading after the competition watchdog admitted it made false accusations against the retailer in last year's dairy price-fixin...
Dairy giant Arla Foods has warned that it may be forced to reassess its strategy for the Middle East if the boycott of Danish goods continues....
Malaysian supermarkets have marked Dutch products with red labels in order to give consumers the option to boycott companies from the Netherlands....
Arla Foods is witnessing a wider consumer backlash against its products in the Middle East than the last boycott two years ago, the dairy giant told just-food today (14 March)....
Scandinavian dairy giant Arla Foods has flatly denied it is looking to buy Swedish firm Skanemejerier....
Arla Foods has set a target of cutting the greenhouse gases from its production, transport and packaging by 25% by 2020....
Arla Foods plans to close its Sheffield Park distribution facility near Uckfield in the UK....
- It won't just be Unilever to push for Brexit hikes
- Price an underlying tension across European FMCG
- Danone's Q3 sales - what the analysts say
- Interview: UK trade body on Brexit's policy impact
- Interview: UK trade body on the impact of Brexit
- Nestle lowers outlook on "softer environment"
- China "transition" drags on Danone Q3
- PepsiCo sets 2025 nutrition, sustainability goals
- UK announces "action plan" to drive food exports
- CP Foods invests in UK foodservice firm Foodfellas
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Omega-3 in Food and Beverage:Time for a Reboot?
- Global Food Packaging: Innovating for Greater Convenience and Quality Image
- Packaged Food: Quarterly Statement Q3 2016
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review