NDDB may be asked to import skimmed milk powder, butter oil to meet shortage- Foreign Trade-Economy-News-The Economic Times
NEW DELHI: India, the world’s largest producer of milk, is looking to allow import of skimmed milk powder and butter oil to address the rising shortage of milk and milk products, which has led to a sharp increase in prices.
A committee of secretaries on prices is expected to take up the proposal shortly, a government official told ET. As per the proposal, the National Dairy Development Board (NDDB) may be asked to import 30,000 mt of skimmed milk powder and 15,000 mt of anhydrous butter oil on an urgent basis.
India produces about 105 mt of milk every year, roughly of the same order as the domestic demand. The tightly balanced demand-supply equation has caused demand to exceed supply, following the drought-related drop in production of milk. There is also apprehension that government policies have made cattle rearing for meat more lucrative, causing growth in production of milk to drop in recent years.
Prices of milk have already gone up in the range of Rs 4 a litre and ghee or butter oil by about 5% in the past six months due to shortage of the commodity. Milk cooperatives all over the country are expected to further raise prices in wake of shortfall and higher procurement prices.
Gujarat Cooperative Milk Marketing Federation, the retailer of the popular Amul brand of milk and milk products, recently raised the price of its full-cream milk by Rs 2 a litre.
Some states such as Maharshtra have already increased procurement price of milk, following a sharp rise in price of fodder.
Union food and agriculture minister Sharad Pawar had recently highlighted the issue of milk procurement by states in view of the shortage of commodity. He had said states looking to procure milk will have to increase the procurement price of milk. Of the total milk produced, about 50% is consumed by the village households, while the remaining 50% is considered marketable surplus. The organised sector accounts for about 30% of the marketable surplus. Most of the dairy cooperatives build their quota of milk powder in winter, when supply of milk is good.
This is then used as a buffer in summer to deal with any shortfall. But, this year, cooperatives have been unable to build this buffer due to the drought forcing the government to resort to imports.
Wednesday, February 24, 2010
Tuesday, February 23, 2010
Sri Lanka Political News | Online edition of Daily News - Lakehouse Newspapers
Sri Lanka Political News | Online edition of Daily News - Lakehouse Newspapers
Govt says no to milk powder price increase
Irangika RANGE
The Cabinet Sub Committee to control and reduce the Cost of Living headed by President Mahinda Rajapaksa which met at Temple Trees on Tuesday, has decided not to permit an increase in milk powder prices after long deliberations on the prevailing milk powder prices in the local and international markets.
Trade, Marketing Development, Co-operatives and Consumer Services Minister Bandula Gunawardena addressing a media-briefing in Colombo yesterday, said a request from milk powder importing companies for an increase in prices was taken at the meeting. The milk powder importers had requested an increase of Rs 135 on a one kilo packet and Rs 35 on a 400 g packet. But, we did not permit this giving thought to the consumer,” he said.
The Minister said the Finance Ministry has promised to provide relief to milk powder importers by way of tax adjustments on milk powder imports.
He said that false propaganda was being spread in the country that milk powder importers are engaged in creating an artificial milk powder shortage on the basis that the Consumer Affairs Authority had not permitted a price hike.
The Minister rejecting this false reports said milk powder importers have agreed to continuously supply adequate milk powder stocks to the market by using the tax relief provided by the Government.
He said the maximum retail prices of Rs 225 for a 400g milk powder pack and Rs 550 for a one kilo pack will not be changed since the Government has declared milk powder as an essential item.
The Government has continuously intervened to reduce milk powder prices on several occasions to provide relief to the people. Milk powder importers requested to increase the price up to Rs 320 for a 400g milk pack during the global economic crisis in 2008. Despite the negative impact, the Government took measures to remove all taxes imposed on the milk powder importers providing relief for both consumers and milk powder importers at that same time. Then the price was reduced to Rs 275 for a 400g milk pack. Again the milk powder prices were reduced twice upto Rs 245 in July 2009 and Rs 225 in November 2009.
Govt says no to milk powder price increase
Irangika RANGE
The Cabinet Sub Committee to control and reduce the Cost of Living headed by President Mahinda Rajapaksa which met at Temple Trees on Tuesday, has decided not to permit an increase in milk powder prices after long deliberations on the prevailing milk powder prices in the local and international markets.
Trade, Marketing Development, Co-operatives and Consumer Services Minister Bandula Gunawardena addressing a media-briefing in Colombo yesterday, said a request from milk powder importing companies for an increase in prices was taken at the meeting. The milk powder importers had requested an increase of Rs 135 on a one kilo packet and Rs 35 on a 400 g packet. But, we did not permit this giving thought to the consumer,” he said.
The Minister said the Finance Ministry has promised to provide relief to milk powder importers by way of tax adjustments on milk powder imports.
He said that false propaganda was being spread in the country that milk powder importers are engaged in creating an artificial milk powder shortage on the basis that the Consumer Affairs Authority had not permitted a price hike.
The Minister rejecting this false reports said milk powder importers have agreed to continuously supply adequate milk powder stocks to the market by using the tax relief provided by the Government.
He said the maximum retail prices of Rs 225 for a 400g milk powder pack and Rs 550 for a one kilo pack will not be changed since the Government has declared milk powder as an essential item.
The Government has continuously intervened to reduce milk powder prices on several occasions to provide relief to the people. Milk powder importers requested to increase the price up to Rs 320 for a 400g milk pack during the global economic crisis in 2008. Despite the negative impact, the Government took measures to remove all taxes imposed on the milk powder importers providing relief for both consumers and milk powder importers at that same time. Then the price was reduced to Rs 275 for a 400g milk pack. Again the milk powder prices were reduced twice upto Rs 245 in July 2009 and Rs 225 in November 2009.
Friday, February 19, 2010
SK Foods Former Owner and CEO Salyer Indicted in Sacramento | Press Releases @ Your Story
SACRAMENTO, Calif., Feb. 18
Vice President for Operations Agrees to Plead Guilty to Related Charges
SACRAMENTO, Calif., Feb. 18 /PRNewswire-USNewswire/ — U.S. Attorney Benjamin B. Wagner announced today that a federal grand jury has returned a seven-count indictment charging Frederick Scott Salyer, 54, of Pebble Beach, Calif., with violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), in connection with his direction of various schemes to defraud SK Foods' corporate customers through bribery and food misbranding and adulteration, and with wire fraud and obstruction of justice.
Additionally, SK Foods former Vice President for Operations Steven James King, 46, of Visalia, Calif., was charged this morning with one count of food adulteration and misbranding. He has agreed to plead guilty and to cooperate in the ongoing investigation and prosecution.
These cases are the product of a joint and extensive investigation by the FBI, the IRS-Criminal Investigation, the Food and Drug Administration Office of Criminal Investigations, and the U.S. Department of Justice's Antitrust Division.
According to Assistant U.S. Attorney Sean C. Flynn, who is prosecuting the case with Barbara Nelson and Richard Cohen of the San Francisco Field Office of the Antitrust Division, between 1990 and 2008, Salyer was the owner and served as chief executive officer of SK Foods LP, a grower, processor and distributor of tomato products and other food products for sale nationwide. SK Foods declared bankruptcy in May 2009, and its assets were purchased by the Singapore-based Olam International.
According to the indictment, SK Foods and its related corporate entities constituted a racketeering enterprise, an organization that Salyer directed, and other SK Foods leaders and employees helped to further through a variety of illicit activities. It is alleged that over a period of 10 years, Salyer orchestrated a number of wide-ranging schemes whereby SK Foods regularly paid bribes to the purchasing managers of many of its customers such as Kraft Foods Inc., Frito-Lay Inc., B&G Foods Inc., and Safeway Inc., to ensure that those customers purchased processed tomato products from SK Foods rather than from its competitors, and that they purchased the product from SK Foods at elevated, above-market prices. The indictment alleges that some bribes were made in order to wrongfully obtain its competitor's proprietary bid information.
As the racketeering enterprise's leader and primary decision maker, Salyer is also alleged to have directed a widespread practice of selling and shipping processed tomato product that did not meet contractual specifications, contained mold levels in excess of the thresholds established by the FDA and was thus unsalable domestically. The indictment alleges that at Salyer's direction, various individuals at SK Foods falsified both internal and customer-bound documentation to make the product appear as if it were legal and contractually compliant when, in fact, it was not.
Salyer is also charged with obstructing justice by ordering the alteration and falsification of certain SK Foods' corporate records after the government's investigation of the company became known. Specifically, the indictment alleges that two weeks after former SK Foods sales broker and Director Randall Lee Rahal pleaded guilty to racketeering, money laundering, and antitrust charges in December 2008, Salyer ordered certain individuals to alter the minutes of a Dec. 14, 2007, SK Foods Board of Directors meeting to eliminate any reference to Rahal as a director of the company.
On Feb. 4, 2010, FBI Special Agents arrested Salyer at Kennedy International Airport in New York City, based on a criminal complaint charging him with 20 counts of mail and wire fraud. According to that complaint, Salyer left the United States in October 2009, following the guilty pleas of several employees of SK Foods and some of its customers, intending to relocate abroad permanently. Salyer had instructed a subordinate to sell many of Salyer's belongings and had transferred millions of dollars from bank accounts formerly associated with SK Foods entities to bank accounts in the Caribbean and Liechtenstein. The complaint alleged that Salyer spoke with a former SK Foods employee about obtaining permanent residence status in Uruguay, Paraguay, Andorra and France because he believed he would not be extradited from these countries. Salyer had booked a flight back to Europe the next day, Feb. 5, 2010. Instead, Salyer made his initial appearance before U.S. Magistrate Judge Steven Gold in Brooklyn, N.Y., that afternoon. Judge Gold denied Salyer bail, stating that Salyer's efforts constituted one of the "most elaborate schemes to flee he had ever seen."
According to the charges filed against King, between 1994 and 2009, he served in a variety of positions, most recently as SK Foods' Vice President for Operations. In that role, he was responsible for overseeing and managing SK Foods production facilities in Williams and Lemoore. He also assisted in managing SK Foods' inventory of processed tomato and other food products, and arranging for the shipment of those food products to SK Foods customers. King has agreed to plead guilty to falsifying and directing other SK Foods employees to falsify various SK Foods' quality control documents and to ship adulterated and misbranded tomato product to various SK Foods customers. He has admitted that his actions were conducted at the express instruction and direction of Salyer, and with the assistance of other senior leaders and directors of SK Foods, and were intended to make it appear to customers as if particular shipments of processed tomato product were compliant with USDA and FDA standards, and with customer specifications, when in fact they were not. King is expected to appear in U.S. District Court in Sacramento in the near future to enter his guilty plea.
The current charges against Salyer and King are the latest in the ongoing investigation of conduct at SK Foods. See attached chart for details. That investigation has not yet been concluded.
The maximum statutory penalty on racketeering charges against Salyer is 20 years in prison, a fine of up to $250,000, and the forfeiture of any interest, property or proceeds acquired or maintained as a result of the racketeering activity. The wire fraud and obstruction charges against Salyer also are punishable by up to 20 years in prison. The food misbranding and adulteration charges against King carry a three-year maximum sentence. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
SOURCE U.S. Department of Justice
Vice President for Operations Agrees to Plead Guilty to Related Charges
SACRAMENTO, Calif., Feb. 18 /PRNewswire-USNewswire/ — U.S. Attorney Benjamin B. Wagner announced today that a federal grand jury has returned a seven-count indictment charging Frederick Scott Salyer, 54, of Pebble Beach, Calif., with violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), in connection with his direction of various schemes to defraud SK Foods' corporate customers through bribery and food misbranding and adulteration, and with wire fraud and obstruction of justice.
Additionally, SK Foods former Vice President for Operations Steven James King, 46, of Visalia, Calif., was charged this morning with one count of food adulteration and misbranding. He has agreed to plead guilty and to cooperate in the ongoing investigation and prosecution.
These cases are the product of a joint and extensive investigation by the FBI, the IRS-Criminal Investigation, the Food and Drug Administration Office of Criminal Investigations, and the U.S. Department of Justice's Antitrust Division.
According to Assistant U.S. Attorney Sean C. Flynn, who is prosecuting the case with Barbara Nelson and Richard Cohen of the San Francisco Field Office of the Antitrust Division, between 1990 and 2008, Salyer was the owner and served as chief executive officer of SK Foods LP, a grower, processor and distributor of tomato products and other food products for sale nationwide. SK Foods declared bankruptcy in May 2009, and its assets were purchased by the Singapore-based Olam International.
According to the indictment, SK Foods and its related corporate entities constituted a racketeering enterprise, an organization that Salyer directed, and other SK Foods leaders and employees helped to further through a variety of illicit activities. It is alleged that over a period of 10 years, Salyer orchestrated a number of wide-ranging schemes whereby SK Foods regularly paid bribes to the purchasing managers of many of its customers such as Kraft Foods Inc., Frito-Lay Inc., B&G Foods Inc., and Safeway Inc., to ensure that those customers purchased processed tomato products from SK Foods rather than from its competitors, and that they purchased the product from SK Foods at elevated, above-market prices. The indictment alleges that some bribes were made in order to wrongfully obtain its competitor's proprietary bid information.
As the racketeering enterprise's leader and primary decision maker, Salyer is also alleged to have directed a widespread practice of selling and shipping processed tomato product that did not meet contractual specifications, contained mold levels in excess of the thresholds established by the FDA and was thus unsalable domestically. The indictment alleges that at Salyer's direction, various individuals at SK Foods falsified both internal and customer-bound documentation to make the product appear as if it were legal and contractually compliant when, in fact, it was not.
Salyer is also charged with obstructing justice by ordering the alteration and falsification of certain SK Foods' corporate records after the government's investigation of the company became known. Specifically, the indictment alleges that two weeks after former SK Foods sales broker and Director Randall Lee Rahal pleaded guilty to racketeering, money laundering, and antitrust charges in December 2008, Salyer ordered certain individuals to alter the minutes of a Dec. 14, 2007, SK Foods Board of Directors meeting to eliminate any reference to Rahal as a director of the company.
On Feb. 4, 2010, FBI Special Agents arrested Salyer at Kennedy International Airport in New York City, based on a criminal complaint charging him with 20 counts of mail and wire fraud. According to that complaint, Salyer left the United States in October 2009, following the guilty pleas of several employees of SK Foods and some of its customers, intending to relocate abroad permanently. Salyer had instructed a subordinate to sell many of Salyer's belongings and had transferred millions of dollars from bank accounts formerly associated with SK Foods entities to bank accounts in the Caribbean and Liechtenstein. The complaint alleged that Salyer spoke with a former SK Foods employee about obtaining permanent residence status in Uruguay, Paraguay, Andorra and France because he believed he would not be extradited from these countries. Salyer had booked a flight back to Europe the next day, Feb. 5, 2010. Instead, Salyer made his initial appearance before U.S. Magistrate Judge Steven Gold in Brooklyn, N.Y., that afternoon. Judge Gold denied Salyer bail, stating that Salyer's efforts constituted one of the "most elaborate schemes to flee he had ever seen."
According to the charges filed against King, between 1994 and 2009, he served in a variety of positions, most recently as SK Foods' Vice President for Operations. In that role, he was responsible for overseeing and managing SK Foods production facilities in Williams and Lemoore. He also assisted in managing SK Foods' inventory of processed tomato and other food products, and arranging for the shipment of those food products to SK Foods customers. King has agreed to plead guilty to falsifying and directing other SK Foods employees to falsify various SK Foods' quality control documents and to ship adulterated and misbranded tomato product to various SK Foods customers. He has admitted that his actions were conducted at the express instruction and direction of Salyer, and with the assistance of other senior leaders and directors of SK Foods, and were intended to make it appear to customers as if particular shipments of processed tomato product were compliant with USDA and FDA standards, and with customer specifications, when in fact they were not. King is expected to appear in U.S. District Court in Sacramento in the near future to enter his guilty plea.
The current charges against Salyer and King are the latest in the ongoing investigation of conduct at SK Foods. See attached chart for details. That investigation has not yet been concluded.
The maximum statutory penalty on racketeering charges against Salyer is 20 years in prison, a fine of up to $250,000, and the forfeiture of any interest, property or proceeds acquired or maintained as a result of the racketeering activity. The wire fraud and obstruction charges against Salyer also are punishable by up to 20 years in prison. The food misbranding and adulteration charges against King carry a three-year maximum sentence. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
SOURCE U.S. Department of Justice
Thursday, February 18, 2010
Business Recorder [Pakistan's First Financial Daily]
TCP's second sugar tender: lowest bid of $585 per ton received
RIZWAN BHATTI
RIZWAN BHATTI
KARACHI (February 18 2010): A bid of $585 per ton (cost & freight) has come for the import of 50,000 tons of sugar, in response to Trading Corporation of Pakistan's second tender to import 200,000 tons of white refined sugar. After receiving an offer of $875 per ton in the first sugar import tender and rising trend in commodity prices in the world market due to massive shortfall, TCP and stakeholders were, therefore, expecting a higher bid in the second tender.
However, Corporation has received a bid of $585 per ton, which is even much lower than the world sugar price of some $700-750 per ton (Free on board). TCP's second and third tender, which were merged on the directives of Competition Commission of Pakistan (CCP), for the import of 0.2 million tons sugar was opened on Wednesday at TCP head office.
Second sugar import tender of 150,000 tons and third tenders of 50,000 tons were due to open on February 13 and 15, respectively, however, on Friday 13, the CCP conducting a hearing allowed containerised shipment of sugar and instructed TCP to merge these tender and open both tender on February 17, 2010.
Therefore, combined sugar tender for the import of 200,000 tons was opened jointly, in which some six international bidders have shown interest to supply the commodity at price of $585-849.15 per ton (C&F). While World Base Trading, the lowest bidder of first tender, has not participated in the tender. Surprisingly, two bidders have offered to supply at a low price of $585-699 per ton, which is almost matching the price of world market.
Interestingly, a pre-qualified supplier namely Sadan General Trading through its local agent KZK has offered to supply 50,000 tons of sugar at a lowest price of $585 per ton. The quoted price is very low then the first tender's lowest bid and as compared to world market prices. Sadan General Trading has also offered to supply another quantity of 8,500 tons of sugar at $649 per ton.
In the first tender a non-pre-qualified supplier World Base Trading the lowest offered to supply 50,000 tons of sugar at $723.2 per ton, however first tender was scrapped due to "defective" Standby Letter of Credit (SCBL) of bidder.
In this case lowest bidder is not only a pre-qualified bidder but also, as per TCP requirement, has deposited a bid bond, which is being scrutinised by Corporation.
The second lowest price is also lower then the first tender's lowest offer. State run grain trader has received second lowest bid of American Investment Group, a non-pre-qualified supplier, through its local agent L.A.J.D green, which is agreed to supply 200,000 ton of sugar at a price of $699.20 per ton.
Louis Dreyfus Trading Limited has participated in the tender with an offer of $824.48 per ton for the supply of 20,500 tons of sugar in break bag and 12,500 tons in containers.
Cargil International has shown interest to supply 200,000 tons of sugar at price of $834 per ton in break bulk and some quantity at $827 per tons in shape of containerised shipment. Al-Khaleej Sugar Company Dubai through its local agent United Resources has offered to supply 200,000 tons of sugar at $849 per ton in break bulk. While in case of containerised shipment it would supply sugar at $838 per ton. Agrocorp International Singapore has shown interest to supply 25,000 tons of sugar at $849.15 per ton and another quantity of 25,000 tons at $836.15 per ton.
Sources said that so far TCP is scrutinising the details submitted by the bidding parties and price evolution committee of TCP would meet on Thursday (today) to finalise the tender.
They said that following the directive of the ministry of commerce, the TCP had issued five tenders for the import of 0.5 million tons sugar. First sugar import tender of 0.15 million tons has scrapped, as the lowest bidder deposited a defective Standby Letter of Credit. Remaining tenders are scheduled to be opened this month, the next one due on February 18 for the import of 50,000 ton of refined sugar.
It my be mentioned here that Pakistan has decided to import some 1.2 million ton of sugar to meet the local demand and so far TCP has issued tender for the import of some 0.5 million ton. While reaming tender is likely to issue soon by TCP, if private traders refuse to import sugar.
Copyright Business Recorder, 2010
No content from Business Recorder shall be reproduced, published, broadcast, rewritten for broadcast or publication, or redistributed directly or indirectly in any medium.
Business Recorder shall not be responsible or held liable for any error of fact, opinion or recommendation and also for any loss, financial or otherwise, resulting from business or trade or speculation conducted, or investments made, on the basis of the information posted here. Nor shall Business Recorder be held liable for any actions taken in consequence.')" onmouseout="popop(event,'tip1')" style="color: rgb(0, 0, 0); font-family: Arial, Helvetica, sans-serif; text-decoration: none; font-size: 11px; cursor: pointer; ">Copyright Business Recorder, 2010
However, Corporation has received a bid of $585 per ton, which is even much lower than the world sugar price of some $700-750 per ton (Free on board). TCP's second and third tender, which were merged on the directives of Competition Commission of Pakistan (CCP), for the import of 0.2 million tons sugar was opened on Wednesday at TCP head office.
Second sugar import tender of 150,000 tons and third tenders of 50,000 tons were due to open on February 13 and 15, respectively, however, on Friday 13, the CCP conducting a hearing allowed containerised shipment of sugar and instructed TCP to merge these tender and open both tender on February 17, 2010.
Therefore, combined sugar tender for the import of 200,000 tons was opened jointly, in which some six international bidders have shown interest to supply the commodity at price of $585-849.15 per ton (C&F). While World Base Trading, the lowest bidder of first tender, has not participated in the tender. Surprisingly, two bidders have offered to supply at a low price of $585-699 per ton, which is almost matching the price of world market.
Interestingly, a pre-qualified supplier namely Sadan General Trading through its local agent KZK has offered to supply 50,000 tons of sugar at a lowest price of $585 per ton. The quoted price is very low then the first tender's lowest bid and as compared to world market prices. Sadan General Trading has also offered to supply another quantity of 8,500 tons of sugar at $649 per ton.
In the first tender a non-pre-qualified supplier World Base Trading the lowest offered to supply 50,000 tons of sugar at $723.2 per ton, however first tender was scrapped due to "defective" Standby Letter of Credit (SCBL) of bidder.
In this case lowest bidder is not only a pre-qualified bidder but also, as per TCP requirement, has deposited a bid bond, which is being scrutinised by Corporation.
The second lowest price is also lower then the first tender's lowest offer. State run grain trader has received second lowest bid of American Investment Group, a non-pre-qualified supplier, through its local agent L.A.J.D green, which is agreed to supply 200,000 ton of sugar at a price of $699.20 per ton.
Louis Dreyfus Trading Limited has participated in the tender with an offer of $824.48 per ton for the supply of 20,500 tons of sugar in break bag and 12,500 tons in containers.
Cargil International has shown interest to supply 200,000 tons of sugar at price of $834 per ton in break bulk and some quantity at $827 per tons in shape of containerised shipment. Al-Khaleej Sugar Company Dubai through its local agent United Resources has offered to supply 200,000 tons of sugar at $849 per ton in break bulk. While in case of containerised shipment it would supply sugar at $838 per ton. Agrocorp International Singapore has shown interest to supply 25,000 tons of sugar at $849.15 per ton and another quantity of 25,000 tons at $836.15 per ton.
Sources said that so far TCP is scrutinising the details submitted by the bidding parties and price evolution committee of TCP would meet on Thursday (today) to finalise the tender.
They said that following the directive of the ministry of commerce, the TCP had issued five tenders for the import of 0.5 million tons sugar. First sugar import tender of 0.15 million tons has scrapped, as the lowest bidder deposited a defective Standby Letter of Credit. Remaining tenders are scheduled to be opened this month, the next one due on February 18 for the import of 50,000 ton of refined sugar.
It my be mentioned here that Pakistan has decided to import some 1.2 million ton of sugar to meet the local demand and so far TCP has issued tender for the import of some 0.5 million ton. While reaming tender is likely to issue soon by TCP, if private traders refuse to import sugar.
No content from Business Recorder shall be reproduced, published, broadcast, rewritten for broadcast or publication, or redistributed directly or indirectly in any medium.
Business Recorder shall not be responsible or held liable for any error of fact, opinion or recommendation and also for any loss, financial or otherwise, resulting from business or trade or speculation conducted, or investments made, on the basis of the information posted here. Nor shall Business Recorder be held liable for any actions taken in consequence.')" onmouseout="popop(event,'tip1')" style="color: rgb(0, 0, 0); font-family: Arial, Helvetica, sans-serif; text-decoration: none; font-size: 11px; cursor: pointer; ">Copyright Business Recorder, 2010
Wednesday, February 17, 2010
Average milk price increases - Weekly Times Now
Average milk price increases
DAIRY Australia has increased its end of year average farmgate price by 10c/kg milk solids, but will not be drawn on an estimated opening price for next season.
The Dairy Australia Situation and Outlook 2010 February update cites uncertainty and volatility surrounding the international market.
Dairy Australia knowledge and strategy manager, Joanne Bills, said an opening price range would not be clear until later this season.
"It is still really early to speculate where the price will be," Ms Bills said.
"It needs to be a couple more months down the track to see how the commodity price is tracking and how the exchange rate is placed in the last quarter of the year."
Last October, Dairy Australia forecast the end of season farmgate milk price of between $4 and $4.30/kg milk solids.
However, following a rise in world dairy prices and indications from major Australian processors of another two milk price step-ups, this figure has been revised to $4.40/kg milk solids or about 34c/litre.
The report also said spot prices for major dairy commodities have increased about 80 per cent over the past year as a result of a reduction in supply.
However, Australian export returns have increased by only 30 per cent, resulting in a lag in farmgate returns.
The strengthening Australian dollar and dairy companies' approach to selling export products has had a negative effect on farmgate prices.
Ms Bills said companies always sold a portion of their product via contract to long-term customers and this was often at a different price to the spot market, leaving the remaining product to be sold on the spot market.
"Spot prices move a lot faster up or down than contracts, which are usually in place for six months," she said.
A drop in production this season has resulted in less milk being available for export, more milk tied-up in contract sales and less available for opportunistic sales on the spot market.
The good news for dairy farmers, according to the report, is that grain prices remain at three-year lows, the European Union export subsidies are now set at zero and the US has abandoned its export subsidy scheme.
The potential for further interest rates rises could hinder dairy farmers in the coming months by providing support for a strong Australian dollar.
Ms Bills said rate rises could also push up the cost of financing and hurt dairy farmers who had to increase their short-term debt early in the season.
She said the fast rise of dairy product prices could hamper demand by turning consumers to cheaper dairy substitutes such as soybeans and palm oil.
Meanwhile, Fonterra announced a milk price step-up to all of its Tasmanian and Victorian suppliers last week of 12c/kg of butterfat and 30c/kg protein.
Fonterra's milk price is now $4.26/kg of milk solids.
The increase will be back-paid to the start of the season.
Corn and soybean Progress Report
Corn and soybean Progress Report
By Darrel Good
(AXcess News) Springfield, IL - In its February report, the USDA's World Agricultural Outlook Board revised the projections of 2009-10 marketing year corn and soybean exports. The marketing year is nearing the midpoint, so that prospects for the year are coming into better focus.
U.S. corn exports for the current marketing year are projected at 2 billion bushels, 50 million below the January projection, but 142 million above the very low level of a year ago. The projection is 437 million bushels below the record exports established in the 2007-08 marketing year. From September 1, 2009 through February 4, 2010, the USDA reported corn export inspections of 694 million bushels, 14 million more than the total of a year earlier. From September through December 2009, Census Bureau exports exceeded export inspections by 51 million bushels. Last year, Census Bureau estimates through February exceeded inspections by 35 million bushels. If the 51 million bushel margin has been maintained since December this year, cumulative exports are about 30 million larger than those of a year ago. To reach the USDA projection of 2 billion bushels for the year, weekly shipments need to average about 42.2 million bushels from now through August. To date, exports have averaged only 33.2 million bushels per week.
As of February 4, 2010, the USDA reported that 469 million bushels of corn have been sold for export, but not yet shipped. Unshipped sales a year earlier totaled only 373 million bushels. Export commitments (shipments plus sales) are currently near 1.21 billion bushels. Weekly sales now need to average about 26.6 million bushels per week in order for commitments to reach 2 billion bushels. For the 4 weeks ended February 4, sales averaged 41.1 million bushels. The pace of outstanding export sales is encouraging, but the pace of shipments will have to accelerate substantially to reach the projection of 2 billion bushels.
U.S. soybean exports during the current marketing year are projected at 1.4 billion bushels, 25 million bushels above the January projection and 117 million bushels above the record exports of a year ago. From September 2009 through February 4, 2010, the USDA reported export inspections of 978 million bushels, 262 million above the cumulative total of a year ago. From September through December 2009, Census Bureau soybean export estimates exceeded inspections by 15 million bushels. Through February last year, Census Bureau estimates exceeded inspections by 42 million bushels. If the 15 million bushel difference between the Census Bureau and inspections estimates has been maintained since December, current exports exceed those of a year ago by 235 million bushels. To reach the USDA projection of 1.4 billion bushels for the year weekly shipments need to average 13.7 million bushels per week from now through August 2010. To date, exports have averaged 44.3 million bushels per week.
As of February 4, the USDA reported that 313 million bushels of soybeans had been sold for export but not yet shipped. The total of those outstanding sales was 222 million bushels a year ago. Weekly sales now need to average only about 3.2 million bushels to reach total commitments of 1.4 billion bushels. Weekly sales have begun the seasonal decline, averaging 12.8 million bushels for the 2 weeks ended February 4. Sales should continue to decline as the record South American crop comes to market. That crop is now forecast at 4.754 billion bushels, 1.244 billion larger than the drought reduced crop of 2009.
The USDA projects 2009-10 marketing year soybean meal exports at a record 10 million tons, 17.5 percent larger than exports of a year ago. The Census Bureau reports exports during the first quarter of the year at 3.439 million tons, 65 percent above the first quarter total of last year. Soybean oil exports are projected at a record 3.25 billion pounds, 48 percent larger than exports of a year ago. For the first quarter of the marketing year, the Census Bureau reports exports of 952 million pounds, 164 percent larger than exports of a year ago. Last year, exports were small in the first half and large in the second half of the year. Like soybean exports, the pace of meal and oil shipments will slow with the availability of the South American crop.
Source: Darrel Good, Agricultural Economist, University of Illinois
Indonesia sees higher sugar output in 2010
Indonesia sees higher sugar output in 2010
Commodities Buzz: Philippines Hikes Rice Import Limit
Philippines Hikes Rice Import Limit
The government of Philippines is likely to import a record volume of rice this year after a government panel raised the import limit to more than 3 million MT from 2.4 million MT, as an ongoing dry spell threatens crops across the country.
An inter-agency committee determines the volume of grain that state agency National Food Authority (NFA) can import. The Philippines has so far contracted 2.25 million MT from four tenders last year for delivery until June.
Experts however feel that increasing demand from Manila was unlikely to trigger any steep rise in grain prices given abundant supply from Thailand and Vietnam, the world's top two rice exporters.
Philippines only bought 1.775 million MT in 2009, of its option of 2.4 million MT, while imports in 2008 reached a record 2.3 million MT that was below the limit of 2.7 million MT set by the inter-agency committee.
An inter-agency committee determines the volume of grain that state agency National Food Authority (NFA) can import. The Philippines has so far contracted 2.25 million MT from four tenders last year for delivery until June.
Experts however feel that increasing demand from Manila was unlikely to trigger any steep rise in grain prices given abundant supply from Thailand and Vietnam, the world's top two rice exporters.
Philippines only bought 1.775 million MT in 2009, of its option of 2.4 million MT, while imports in 2008 reached a record 2.3 million MT that was below the limit of 2.7 million MT set by the inter-agency committee.
'Additional rice imports not an immediate need' | Home >> Other Sections >> Breaking News
'Additional rice imports not an immediate need'
MANILA, Philippines (Xinhua) - Despite the losses that the farm sector is now incurring due to the El Nino episode, government officials said on Tuesday that they do not see the additional importation of rice as a pressing need at this time.
Officials from the National Food Authority (NFA) said that the country's granary still has enough rice and that Manila is expecting more delivery of imported rice in the coming months.
"(Importing rice) is not immediate as others would say. The possibility of importing (rice) is there, but we still have much to consume," said NFA Assistant Administrator Jose Cordero.
Cordero noted that around 400,000 metric tons of rice have already arrived and that about 1.7 million metric tons (MMT) will still be shipped to Manila.
Currently, the country's rice inventory stands at 2.6 MMT, of which 1.2 MMT are in the households, 1 MMT are with the NFA and about 417,100 metric tons are with the commercial sector.
The NFA official noted that the government will have to review the impact of El Nino on farmlands all over the country.
For the whole of 2010, the Bureau of Agricultural Statics project palay output to reach 17.4 MMT or 7 percent higher than the 16.26 MMT paddy rice production in 2009.
Almond farm makes $25m takeover offer - ABC News (Australian Broadcasting Corporation)
Almond farm makes $25m takeover offer - ABC News (Australian Broadcasting Corporation)
Northern Victoria's biggest almond farm operator has made an offer for another large property near Robinvale in the north-west.
Select Harvests manages 30,000 hectares of almonds in the region for the Singapore-based Olam international and already owns 3,500 hectares of its own.
It has made a $25 million offer to buy another 1,600 hectares of almond orchards at Lake Powell from the Seven Fields company.
Select already manages the Lake Powell property for Seven Fields.
Wednesday, February 10, 2010
RP-Thai rice deal to be signed this month
THE DRAFT agreement between the Philippines and Thailand which will allow the former to delay tariff reduction commitments on rice has passed the Agriculture department’s final check and will likely be signed by end-February, a Trade official said yesterday.
Both sides had last month already settled on a rice quota the Philippines will import from Thailand to make up for the delayed tariff cut, and just needed to double check the language of the agreement.
"Last [Tuesday] night, we received from Agriculture Secretary Arthur C. Yap’s okay of the proposed language of Thailand," Trade Assistant Secretary Ramon Vicente T. Kabigting told reporters at the sidelines of a free trade deal briefing.
The development is expected to move towards a deal between the two Southeast Asian neighbors, which have been in talks since late last year when Thailand insisted the Philippines slash rice tariffs to 20% this year from 40% under the ASEAN Trade in Goods Agreement.
The Philippines has argued that the trade pact allowed it to exempt rice from the scheduled tariff cuts before bringing it down to 35% in 2015.
Both sides last month agreed on a draft wherein the Philippines will commit to import up to 367,000 tons of rice duty-free from Thailand if prices are competitive and demand actually exists.
Thailand had then went on to ask that 50,000 tons of Thai high-quality rice should be given preference should the Philippines need to purchase this more expensive variant.
The Philippines had resorted to buying high-quality rice before when broken rice, usually sourced from Vietnam, ran out.
"Mr. Yap accepted the wording," Mr. Kabigting said, clarifying that the Philippines will not be compelled to purchase high-quality rice if cheaper variants are available in the world market.
"We will now be sending the draft back to Thailand. Hopefully it will be [signed] at the ASEAN Economic Ministers meeting at the end of the month," Mr. Kabigting said.
Last year, the government imported 1.575 million tons, with Vietnam cornering roughly 95% of all tenders, while Thai imports totalled 75,000 tons. -- Jessica Anne D. Hermosa
Ghana targets 50% local rice production by 2012
In the country's quest to be a net exporter of rice, the government plans to increase local rice production from the current 30 per cent to 50 per cent in the next two years.
Vice-President John Mahama, who announced this Tuesday, said the move would enable the country to save 300 million dollars used on rice imports over the next three years.
He was inspecting a rice farm managed by the Brazil Agro Business Group in the Sogakope District of the Volta Region.
The irrigated rice farm project, which started in October last year, is currently cultivating 150 hectares of rice. It plans to increase it to 1,000 hectares by the end of the year and 5,000 hectares in five years.
So far, 30 Ghanaians have been engaged on the rice farm and according to the management of the farm, an additional 500 people would soon be employed, as the company expands cultivation to 480 hectares.
Vice-President Mahama said to further boost local rice production, the government plans to divert water from the lower Volta to the Accra plains to use it up for rice, maize and vegetable production.
"Between this company [Brazil Agro Business Group] and Prairie Volta Limited at Aveyime, we are targeting 20,000 tonnes of rice production annually," Mr Mahama said and mentioned lowland rice cultivation in some parts of the Northern Region under the Rice Sector Support Project, as other measures to increase rice production.
The Vice-President described the productivity of the company as "very good," due to the fact that it is harvesting seven tonnes of rice per hectare even though it started operations not long ago.
Luis Fernando Serra, Brazilian Ambassador to Ghana, who conducted the Vice-President round the farm said currently, the processing and harvesting of the irrigated rice, is being done with equipment support from Prairie Volta since the company is young.
He said the yield is good because of improved technology and added that the company had so far, invested 1.5 million dollars into the rice project.
Ambassador Fernando Serra stressed the need for the government to take steps to protect the local rice industry by increasing taxes on rice imports. That, he said, would also save the country from the huge annual rice import bill.
The investor, Mr. Leor Valer, said by next year the company will have its own processing and harvesting equipment.
He said "the challenge facing the company now is the lack of skilled manpower to work on the farms" but gave the assurance that the local folks were being trained to handle the situation.
Source: The Ghanaian Times
Vice-President John Mahama, who announced this Tuesday, said the move would enable the country to save 300 million dollars used on rice imports over the next three years.
He was inspecting a rice farm managed by the Brazil Agro Business Group in the Sogakope District of the Volta Region.
The irrigated rice farm project, which started in October last year, is currently cultivating 150 hectares of rice. It plans to increase it to 1,000 hectares by the end of the year and 5,000 hectares in five years.
So far, 30 Ghanaians have been engaged on the rice farm and according to the management of the farm, an additional 500 people would soon be employed, as the company expands cultivation to 480 hectares.
Vice-President Mahama said to further boost local rice production, the government plans to divert water from the lower Volta to the Accra plains to use it up for rice, maize and vegetable production.
"Between this company [Brazil Agro Business Group] and Prairie Volta Limited at Aveyime, we are targeting 20,000 tonnes of rice production annually," Mr Mahama said and mentioned lowland rice cultivation in some parts of the Northern Region under the Rice Sector Support Project, as other measures to increase rice production.
The Vice-President described the productivity of the company as "very good," due to the fact that it is harvesting seven tonnes of rice per hectare even though it started operations not long ago.
Luis Fernando Serra, Brazilian Ambassador to Ghana, who conducted the Vice-President round the farm said currently, the processing and harvesting of the irrigated rice, is being done with equipment support from Prairie Volta since the company is young.
He said the yield is good because of improved technology and added that the company had so far, invested 1.5 million dollars into the rice project.
Ambassador Fernando Serra stressed the need for the government to take steps to protect the local rice industry by increasing taxes on rice imports. That, he said, would also save the country from the huge annual rice import bill.
The investor, Mr. Leor Valer, said by next year the company will have its own processing and harvesting equipment.
He said "the challenge facing the company now is the lack of skilled manpower to work on the farms" but gave the assurance that the local folks were being trained to handle the situation.
Source: The Ghanaian Times
Philippines studying more rice imports for 2010 on El Nino | ABS-CBN News Online Beta
Philippines studying more rice imports for 2010 on El Nino
MANILA, Philippines - The Philippines, the world's biggest rice buyer, is studying the possibility of increasing rice imports this year to meet a potential output shortfall due to a dry spell caused by the El Nino phenomenon, a senior government official said on Wednesday.
"It's possible," Agriculture Undersecretary Bernardo Fondevilla told reporters when asked if the country's rice imports for 2010 would increase.
Earlier, Fondevilla said a severe El Nino weather pattern this year could cut the Philippine paddy rice harvest by more than 800,000 tons, which could mean more rice imports.
But a mild El Nino may only reduce crop losses to a smaller 264,940 tons, he said.
In response to either scenario, the government has set aside P570 million to mitigate the impact of El Nino on rice output, including cloud seeding over watershed areas and boosting irrigation systems, Fondevilla said.
Manila expects rice imports this year to hit a record 2.4 million tons as it makes up to typhoon damage caused last year to the crop.
Thailand to supply 50,000 MT rice to RP | Manila Bulletin
Thailand to supply 50,000 MT rice to RP
The Philippines has agreed to Thailand supplying up to 50,000 metric tons of “premium rice” on a need basis.
Trade and Industry Assistant Secretary for International Trade Group Ramon Vicente Kabigting said that Agriculture Secretary Arthur Yap has agreed to the new language Tuesday night.
According to Kabigting, the language in the draft agreement goes, “If the Philippines should need to import high quality rice, Thailand will supply up to 50,000 metric tons.” This would be part of the planned 360,000 metric tons of rice to be imported from Thailand as part of the Philippine compensation for delaying tariff cuts on rice under the ASEAN Free Trade Area agreement.
Kabigting said the agreement between the Philippines and Thailand is going to be signed during the ASEAN Economic Ministers Meeting in Malaysia end of this month.
The language on the 50,000 metric ton premium rice allocation was agreed upon after the Philippines told Thailand that what the country intends to buy is “affordable” rice and not premium rice.
Escaped GM rice strain: $1.5 million in damages | Australian Food News
A US court has ordered German company Bayer to pay US$1.5 million in damages to three US farmers after their crops were contaminated with an unapproved strain of Bayer’s genetically modified rice. This case followed a $2 million ruling in a similar case in December, with around 500 more pending.
Bayer CropScience’s biotech rice strain LL601 or ‘LibertyLink’, a pesticide-resistant plant, was first detected in 2006 in US rice crops. Despite Bayer’s assurances that the product was safe for human consumption, markets reacted badly. In addition to the destruction of millions of dollars worth of crops, many countries halted US rice imports and prices dropped dramatically. Altogether, it is estimated that this one escaped GM strain cost US growers around US$150 million. LibertyLink has since been certified for human consumption.
The damages awarded by the juries in both Friday’s and December’s test cases were not punitive, as they were unable to establish that Bayer were negligent in letting the strain escape. Lead attorney for the plaintiffs, Don Downing, expressed his disappointment. “This was all, we believe, very preventable by Bayer, if they had just exercised the kind of care they should have exercised in handling the rice.” Bayer said it was pleased with the jury’s decision not to award punitive damages, but otherwise was disappointed in the ruling. USDA investigations have been unable to shed light on how the strain got out.
Developing Thar coal - PakTribune
Nature has blessed our country with so many resources that we can become a prosperous nation by utilising them. Thar coal is said to be amongst the world’s largest coal reserves situated in Tharparkar, Sindh. About 9,100 square kilometres of Thar desert contains 175.506 billion tonnes of coal. An estimate of Pakistan Economy Watch suggests that the reserves are worth 25 trillion US dollars and only by putting 2 percent of it into use we can produce 20,000 megawatts of electricity for the next 40 years.
Coal is the most important energy source used for the generation of electricity in several developed and developing countries. The statistics of the World Coal Institute London compiled in 2006 indicate that the US produces 52.2 percent of its electricity through coal, China produces 77.5 percent of its total electricity by coal, our neighbour India generates 70 percent of power by coal. The figure for South Africa is 92.2 percent, while we are using just 5.0 percent of our coal for energy generation.
Several MoUs were signed between past governments of the PPP and multinational exploration companies. They even invested and began work on the infrastructure but after the removal of the PPP government, Mian Nawaz Sharif ended these projects on political grounds. During the Musharraf regime, a Chinese company was invited to invest in a project to generate 600 MW of electricity but due to the unfriendly attitude of Wapda and the National Electric Power Regulatory Authority (Nepra), the Chinese company had to quit.
Now, when we are facing the worst-ever energy crisis, we must start developing Thar coalfields. Sindh Coal and Energy Board has been established under the chairmanship of the Sindh Chief Minister, which has still to show any performance. For an end to the energy crisis once and for all, the development of Thar coal is the most feasible option.
KASHIF ALI RAJPAR
Demand for foreign milk powder brands soars in China
Scared by the melamine milk product scandal, many parents in China are now buying online from other countries or through friends who import items without a permit when returning from overseas trips.
Those who purchase milk products through unauthorized agents cannot seek compensation if the product is of low quality, but parents still believe overseas products are safer.
The owner of an online shop called "Sunshine of New Zealand" told the Global Times Wednesday that business was good. So good that she was able to open another online store last August.
One product, the Karicare 3 Toddler Growing Up Formula, has been selling around 14 cans a month. The owner said her friends buy the milk product directly from supermarkets in New Zealand.
"We have agents to take care of the importing. Parents in China can buy as many as they want," she said.
She added that the agents have to "patrol" supermarkets on a daily basis to snap up the baby formula because the demand has increased among Chinese customers.
About 100 online shops are listed by searching "New Zealand baby formula" on Taobao, an online platform for shopping, socializing and information sharing in China. The prices for some brands, such as Karicare and Anchor, range from 100 to 200 yuan ($14 to 29) each, while local brands cost between 20 to 150 yuan ($2.9 to 21).
China Business News reported that many online shops do not have the required permit to import overseas milk products.
Parents' confidence in local milk products plunged after the melamine scandal in 2008. Melamine, a chemical that can cause kidney stones, sickened 300,000 people.
Liang Jinhuan, a father of a baby daughter in South China's Guangdong Province, said he prefers imported baby formula.
"The tainted milk scandal still haunts us," he told the Global Times Wednesday. "We have only one daughter, and we want to give her the best."
Last month, he asked his father to go to Hong Kong to buy eight cans of imported milk powder, which cost HK$180 each.
The demand for overseas milk products has alerted New Zealand authorities and supermarkets. The New Zealand Herald reported earlier that many Chinese living in New Zealand have been flocking to supermarkets to stock up on milk products for their friends in China.
Some supermarkets have restricted Chinese customers to buying just four cans at a time. "We appreciate why people are doing it, but our supply is for the domestic market," a supermarket spokeswoman told the newspaper.
Neil McLeod, senior program manager of the New Zealand Food Safety Authority, told the newspaper that they are aware of the situation and would investigate if the baby formula the online traders sell has obtained a safety certificate.
Authorities in China launched a campaign this week to look into food safety problems including the recent discovery that tainted milk from 2008 was used to make ice cream bars and other products.
About a week ago, officials in Guizhou Province announced that four dairy companies had sold products in the province with high levels of melamine, while the companies involved blamed suppliers for the contamination.
Milk price war in India
Price wars over agricultural commodities are not new to Maharashtra, witness the efforts by sugar mills to get more cane by paying ever higher sugarcane prices. Private dairies have now adopted this strategy by first raising procurement prices and then passed on the burden to retail consumers. While cooperative dairies in the state have also raised their procurement prices, paying more to the farmer, they are yet to raise their retail prices.
However, this milk price war which began about a fortnight ago in the middle of the flush season, is more about private dairies stockpiling processed milk products. This milk is processed into value added products for either the domestic or export markets since these products, like cheese, butter, casein, fetch better rates.
Ramesh Bhujbal, chairman of the Pune district cooperative milk producers federation, better known as the Katraj dairy, pointed to the effects of such a pricing strategy.
"With private dairies increasing their procurement rates, a large quantity of our milk got diverted to them. We had no option but to increase our procurement rates,too," Mr Bhujbal explained. The dairy is considering a retail milk price rise, given that its procurement price has increased.
Maharashtra produced 72.1 lakh (7.21 million) tons liquid milk in 2007-08, according the NDDB, with the sector recording a steady growth of about 4% in the past decade. India’s exports of milk products, including casein, have risen approximately six fold in five years, from 2003-04 to 07-08 in terms of quantity, according to the department of animal husbandry under the central government’s agriculture ministry.
Prices of milk products like butter, casein and milk powder are ruling high in international markets, leading to a rise in exports from India. Mill powder prices in the international market have increased from US$ 2800 per tonne last year to US$ 3500 per tonne in the current year while fat rates have almost doubled from US$ 2700 per tonne to US$ 4800 per tonne over the same period.
These rates have kicked off a price war among Maharashtra dairies, private and cooperative, to collect more milk. Milk procurement rates have gone up by Rs 50 paise to Re 1 per litre for cow’s milk and by Rs 2 for a litre of buffalo milk. Private dairies have already passed this on to consumers by increasing selling prices of milk in the same proportion while dairies in the cooperative sector are in the process of increasing their selling price from February.
"Till recently, it was more profitable selling liquid milk than processed products. But this year, dairies are getting more money from milk products as compared to liquid milk," said the Kolhapur-based Warana Group’s marketing manager, BB Bhandari.
Though the dairies have justified the increase in procurement prices as beneficial to the farmer, the main motive behind the current hike to collect the maximum amount of milk to convert into various milk products. The government’s milk rates are usually the bench mark but this time, all dairies have increased procurement rates even before the government’s rate hike, which coincides with the onset of the lean season in April.
The other reason advanced by the dairies to justify the procurement price hike is that milk production costs have increased due to high rates of animal feed. This is true considering that animal feed prices, which usually come down after November, have not come down during the current flush season. But experts point out that input costs have been high for the farmers for many years and they have had to resort to agitation to demand better rates, indicating that "the present race to offer higher procurement rates has its roots somewhere else."
The Kolhapur district cooperative milk federation known as Gokul milk and the Kolhapur-based Warana dairy of MLA Vinay Kore have also increased their procurement rates and the Mumbai-based milk cooperative, the Mahanand dairy which supplies more than 5 lakh litres milk to the metropolis has followed the suit.
"We have increased our procurement rates and will soon decide about the selling price," said Mahanand chairman Vinayak Patil.
Usually all dairies increase milk rates from April which is the beginning of the lean season when milk production is naturally low. However, this year, the rate hike has been advanced by two months, right in the middle of the flush season.
Apart from exports, many dairies are stock piling butter and milk powder during the current flush season. This helps the dairies to make money during the lean season when the milk prices rule high, by forming reconstituted milk (RCM) from butter and milk powder.
Price war among milk dairies in Maharashtra to attract higher quantity milk. Milk diverted to milk products for exports and for stock piling. Consumers have to pay higher for liquid milk though there is no milk shortage.
However, this milk price war which began about a fortnight ago in the middle of the flush season, is more about private dairies stockpiling processed milk products. This milk is processed into value added products for either the domestic or export markets since these products, like cheese, butter, casein, fetch better rates.
Ramesh Bhujbal, chairman of the Pune district cooperative milk producers federation, better known as the Katraj dairy, pointed to the effects of such a pricing strategy.
"With private dairies increasing their procurement rates, a large quantity of our milk got diverted to them. We had no option but to increase our procurement rates,too," Mr Bhujbal explained. The dairy is considering a retail milk price rise, given that its procurement price has increased.
Maharashtra produced 72.1 lakh (7.21 million) tons liquid milk in 2007-08, according the NDDB, with the sector recording a steady growth of about 4% in the past decade. India’s exports of milk products, including casein, have risen approximately six fold in five years, from 2003-04 to 07-08 in terms of quantity, according to the department of animal husbandry under the central government’s agriculture ministry.
Prices of milk products like butter, casein and milk powder are ruling high in international markets, leading to a rise in exports from India. Mill powder prices in the international market have increased from US$ 2800 per tonne last year to US$ 3500 per tonne in the current year while fat rates have almost doubled from US$ 2700 per tonne to US$ 4800 per tonne over the same period.
These rates have kicked off a price war among Maharashtra dairies, private and cooperative, to collect more milk. Milk procurement rates have gone up by Rs 50 paise to Re 1 per litre for cow’s milk and by Rs 2 for a litre of buffalo milk. Private dairies have already passed this on to consumers by increasing selling prices of milk in the same proportion while dairies in the cooperative sector are in the process of increasing their selling price from February.
"Till recently, it was more profitable selling liquid milk than processed products. But this year, dairies are getting more money from milk products as compared to liquid milk," said the Kolhapur-based Warana Group’s marketing manager, BB Bhandari.
Though the dairies have justified the increase in procurement prices as beneficial to the farmer, the main motive behind the current hike to collect the maximum amount of milk to convert into various milk products. The government’s milk rates are usually the bench mark but this time, all dairies have increased procurement rates even before the government’s rate hike, which coincides with the onset of the lean season in April.
The other reason advanced by the dairies to justify the procurement price hike is that milk production costs have increased due to high rates of animal feed. This is true considering that animal feed prices, which usually come down after November, have not come down during the current flush season. But experts point out that input costs have been high for the farmers for many years and they have had to resort to agitation to demand better rates, indicating that "the present race to offer higher procurement rates has its roots somewhere else."
The Kolhapur district cooperative milk federation known as Gokul milk and the Kolhapur-based Warana dairy of MLA Vinay Kore have also increased their procurement rates and the Mumbai-based milk cooperative, the Mahanand dairy which supplies more than 5 lakh litres milk to the metropolis has followed the suit.
"We have increased our procurement rates and will soon decide about the selling price," said Mahanand chairman Vinayak Patil.
Usually all dairies increase milk rates from April which is the beginning of the lean season when milk production is naturally low. However, this year, the rate hike has been advanced by two months, right in the middle of the flush season.
Apart from exports, many dairies are stock piling butter and milk powder during the current flush season. This helps the dairies to make money during the lean season when the milk prices rule high, by forming reconstituted milk (RCM) from butter and milk powder.
Price war among milk dairies in Maharashtra to attract higher quantity milk. Milk diverted to milk products for exports and for stock piling. Consumers have to pay higher for liquid milk though there is no milk shortage.
Tuesday, February 9, 2010
The Vision Foods and IDARA E KISAN
The Vision Foods is marketing the Dairy products, Fruit drinks and bottled water produced and packed by IDAR E KISAN, in Halla and Aqua Clear brands in International Market. The genesis of IK was the 1983 Pattoki Livestock Production Project (PLPP), initially supported by the German Government and implemented through technical assistance from GTZ. The emphasis was on extension and education of farmers with a view to improve productivity and farmers’ incomes through the development of a participatory organization. During an in-
house workshop of the project, it was realized that extension alone was not enough to achieve these objectives. So a service provision element was added that included animal health, reproduction, feeding, extension and social components. This decision had its roots in the realization that increased farmer incomes were highly fungible and not always invested in livestock.
Today Idara E Kisan is producing Dairy products, Fruit Drinks, Nectars and bottled Water. For details please click below:
HALLA DAIRY PRODUCTS
Idara E Kisan enjoys the collection and production capacity of 200,000 liters of milk per day. The Dairy products of Idara E Kisan, in Halla brand includes;
c. Milk powder with Vegetable Fats
2- Long Life Milk / Ultra High Temperature (UHT)
3- Butter
a. Butter Oil (Desi Ghee)
b. Yellow Butter
c. White Butter
4- Cream (Fresh, packed in cans)
Milk Prices Fall for Second Month on Increased Supply - Bloomberg - Gavin Evans - Feb 2, 2010
By Gavin Evans
Feb. 3 (Bloomberg) -- Milk powder prices fell for a second month as production in Europe and the U.S. increased and concerns eased that drought would reduce global supplies, Fonterra Cooperative Group Ltd. said today.
Whole milk powder for April delivery declined 2.5 percent to $3,200 a metric ton, according to data on the Auckland-based company’s GlobalDairyTradeWeb site. Prices fell for the first time in six months in January, having reached a 16-month high in December. The April contract is up 74 percent from a year ago.
Fonterra is the world’s biggest dairy exporter, accounting for about 40 percent of the global trade in butter, milk powder and cheese. Powder prices have climbed from a five-year low in July as food makers increased inventories as the global economic outlook improved.
“We’ve just been through a period of supply re-stocking which appears to have come to an end,” GlobalDairyTrade Manager Paul Grave said in a telephone interview from Auckland. The European and U.S. “season is just about to come into full swing. Potentially there will be more product available into the marketplace.”
Fonterra’s Internet-based auctions offer a one-month contract with delivery starting two months after the sale, and two three-month contracts with delivery starting three and six months later.
Milk powder for delivery from May through July rose 1.6 percent to $3,308 a ton, Fonterra said. Powder for shipment from August through October dropped 6.7 percent to $3,287 a ton.
Improved Confidence
Fonterra’s later-dated contract has fallen $429 a ton since December. The decline probably reflects improving confidence in future production and greater clarity around output levels in New Zealand and Australia, Grave said.
“There was a bit of a premium previously,” he said. “There were some supply concerns which probably have eased a little now, although Australian supply is down a little and some parts of New Zealand are still in drought.”
Dry weather will cut Fonterra’s output about 0.8 percent in the year ending May 31, the company said Jan. 8. Australian production in the five months through November was 5.4 percent less than a year earlier, Dairy Australia said Jan. 21.
Across all contracts, average prices declined 1.6 percent to $3,256 a ton, a sign the market is “coming into a reasonable sort of balance,” Grave said.
Prices will likely “bounce around” in coming months as buyers adjust to demand from their customers and the production outlook, he said.
“The key is consumer demand, that’s the unknown factor,” Grave said. “There are positive signs out there, but it relies on sustained economic growth to be maintained. And that’s the key really.”
Skim milk set for net auction
Fonterra will introduce skim milk powder to its monthly internet auction globalDairyTrade next month, taking 20 per cent of New Zealand's total milk production online and aiming to give the world a regular benchmark price for this commodity.
Wholemilk powder has till now been the 18-month-old internet sales platform's stock in trade, with the average price at this week's monthly event falling 1.6 per cent or US$53 (NZ$75) per tonne from the January sale, the second month to show a drop.
Paul Grave, gDT's manager, said the result was within an expected range of price movement in current market conditions, and at the high end of historic prices.
There had been substantial price rises in wholemilk powder at the start of this season. Supply and demand forces were now "balancing themselves", Mr Grave said.
The addition of skim milk powder to the auction would mean 400,000 tonnes, or 20 per cent of New Zealand's milk, would be sold online.
Prices for skim milk powder had weakened in the US and Europe in the past month, as Europe milk production headed towards its peak for the year, and supply exceeded demand.
Asked about the level of skim milk prices Fonterra might achieve next month, Mr Grave said: "That's why we have gDT, to establish a benchmark."
Fonterra started selling by auction in July 2008 to try to provide global markets with guidance in an increasingly volatile price environment.
The platform was launched just as international commodity prices plunged in the economic crisis and Fonterra was for some time blamed by its competitors for helping to depress market prices.
It sells about 10 per cent of its annual wholemilk powder production on the site.
The average price at this week's event was US$3256 a tonne.
Mr Grave expected wholemilk powder prices to "bounce around" for a while as market volatility continued.
This week's result could have been worse given demand was easing, an independent trader said.
Market concern about the security of supply due to less Australian milk production and drought in parts of New Zealand had eased, but buyers were still trying to anticipate the effects of supply and demand on future prices, which was causing volatility.
Fonterra is keen to attract other sellers to gDT to give the sales platform more credibility. Mr Grave said there had been some interest and there could be developments this year.
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