German dairy price skyrockets
The German Central Marketing and Pricing Board for Agriculture, Forest and Food Producers warned recently that prices for dairy products would rise up to 50%. “Prices will increase due to the current market situation,” the head of the Dairy Industry Association Eberhard Hetzner told German public television. Economists said the rise was due partly to growing demand from countries such as China and India. In the second half of the year prices could increase further, which could lead to higher earnings for farmers, but the trade chain would ensure that prices would be smoothed out by the time they got to the consumer, said Hetzner. – Staff reporter
Fonterra makes dairy millionaires
The 11 600 Zealand dairy farmers who supply the giant Fonterra Co-operative Group will be paid an average NZ$482 758 (R2,6 million) each after the processor announced a payment of 4,46/kg of milk solids for the past season, up 11c on the May forecast. The total payment comes to NZ$5,6 billion (almost R308 billion), and industry players say some farmers – those with several properties and large herds – can expect multimillion-dollar payouts. Fonterra predicted an even larger payout for the season ending next May, as it reported an operating surplus for the year ended May 31 2007 of NZ$1,22 billion, up from 735 million the previous year. Revenue rose by 881 million to NZ$13,9 billion. “We’ve had a good production year and very strong price increases in the back half of the year,” chairperson Henry van der Heyden said. “This result will put a smile on our farmers’ faces.” Fonterra expects the record high dairy prices will eventually put pressure on demand. “We are still having very strong sales, but I’m sure the dynamics will change over time,” Van der Heyden said. – Alan Harman
