NEWS ALERT

Dairy ingredient prices could rise sooner than
you think, warns leading European trader

 

Dairy commodity prices have hit the floor and food manufacturers should lock into a long-term deal quickly before they rise again, one of Europe’s leading traders has warned.

 

Market prices for dairy commodities are currently at a 10-year low. The European Commission is already buying up skimmed milk powder through its Intervention Scheme to prop up the market, and is expected to extend this measure to butter in the next few weeks.

 

According to Belfast-based Greenfields Ireland, as soon as a market balance is achieved prices are almost certain to start rising again. This means now is the perfect time for food manufacturers in Europe to lock into a fixed-price deal for their dairy ingredients using a long-term pricing model.

“Do this today, and it will be possible to benefit from low prices and insulate your business from the extreme price volatility that’s been a characteristic of the European dairy ingredients market over the past decade,” said Ian Thomas, Managing Director of Greenfields Ingredients, the UK division of Greenfields Ireland.

“For companies in the bakery, confectionery and ready meals categories, who often use large volumes of dairy ingredients, this is an opportunity that’s simply too good to miss. Wait too long, however, and it could be too late. Intervention by the European Commission will take excess supplies of milk out of the market, and product prices will soon start to creep up.”

Dairy ingredients are cheap right now because there’s too much milk in the market and not enough demand for it. In Europe this has been caused largely by the abolition of milk quotas, which previously put a cap on how much milk dairy farmers were allowed to produce. With EU-wide quotas consigned to history, dairy commodities are exposed to free market forces – and right now those forces have sent prices crashing to the floor.

However, according to Mr Thomas, prices will not stay low for long. “Now is the time to consider locking into a long-term pricing model,” he explained. “This will give you the assurance of knowing that when prices eventually rise, which we expect them to do in the second half of 2016, the price you pay for your dairy ingredients will be more favourable than that available on the market. Considering the pressure major retailers put on their suppliers to keep a lid on raw material costs, the peace of mind this offers could prove to be invaluable. While your competitors are pulling their hair out at the prospect of an upswing in ingredient prices, you’ll enjoy the benefits of cost protection.”

He added: “We are particularly anxious that bakers, confectioners and ready meal producers explore our pricing models before prices start to rise again.”

Greenfields Ireland has developed a range of pricing models that offer a straightforward way for food manufacturers to fix dairy commodity prices at today’s low levels. The company trades in EU dairy futures on the European Energy Exchange (EEX), the Chicago Mercantile Exchange (CME) and the New Zealand Exchange (NZX), which gives it the ability to hedge dairy commodities to the benefit of its customers.

This approach is combined with sustainable milk price contracts for Greenfield’s farmers, which typically extend over three to five years. This gives its suppliers more certainty over selling prices, ensuring its supply chain is sheltered from excessive risk.

  ENDS

 

For more information, please contact:

Kine Bjoralt, Ingredient Communications

Tel: +44 141 280 4141

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Twitter: @ingredientcomms

 

About Greenfields Ireland/Ingredients
Established in 1992, Greenfields Ireland Limited is an international dairy trading company supplying dairy ingredients, specialist milk products and finished dairy products to customers throughout Europe, the Middle East, South America, Far East and Africa. Based in Belfast, Northern Ireland, Greenfields Ireland also has regional offices in Nantwich, England (Greenfields Ingredients) and in Dubai, UAE (Greenfields Ireland LL.C). Greenfields Ingredients is principally involved in the supply of a range of dairy ingredients to a UK customer base, including leading food manufacturers.

 

“Solar Powered Water Pumping and Irrigation Systems are a qualitative and feasible solution for commercial farming in Zambia”

  • Exclusive interview with Johannes Kurt, Representative, Southern African-German Chamber of Commerce and Industry in Zambia. During Agritech Expo, he will address the Commercial Farmers Focus Day Workshops on: “Building a reliable power supply: Solar-Photovoltaics in Agriculture”.

1)    Let’s start with some background and history on the Southern African-German Chamber of Commerce and Industry NPC in Zambia…
The Southern African – German Chamber, established in 1952, is the largest bi-lateral Chamber of Commerce in Southern Africa, representing more than 630 member companies from Southern Africa and Germany. With offices in South Africa (Johannesburg, Cape Town and Durban), in Mozambique (Maputo) and a representative in Zimbabwe (Harare). 

In early 2016 the SAGCC opened a representative office in Lusaka as the emergence of Zambia as the third largest economy in Southern Africa over the last years has underlined the opportunities vast of this market. The Chamber will offer companies from Germany a comprehensive platform for engaging in bi-lateral business relations with the protagonists of the vibrant Zambian economy. 

2)    Any exciting projects that the Chamber is involved in currently?
The young history of the Lusaka Office has been an active one. We have facilitated an inbound delegation from the renewable energy sector in early February.  Together with Germany Trade and Invest and the GIZ we are currently issuing an investment guide for Zambia to bring more German companies here to evaluate the vast opportunities on the spot. Parallel to that we are strengthening and enlarging our ties to Zambian business community. A series of first official visits with institutional partners and business representatives will culminate in the official inauguration of the Lusaka Office with high-level guests from Zambia and Germany in late May. 

3)    You will address the Agritech Expo Commercial Farmers Focus Day on “Building a reliable power supply: Solar-Photovoltaics in Agriculture” – can you give us a sneak preview of what your message will be to the farmers?
Commercial farming is facing challenging times in Zambia – a drought of unknown dimension until now has hit the country combined with severe load shedding affecting the energy supply of all farmers, especially critical in regard to the water pumping and irrigation. In cooperation with PEP - The Renewable Energy Project Development Programme which is supported by the German Government, we have prepared a presentation showing a variety of alternatives to the sole use of diesel generators. The key message will be that Solar Powered Water Pumping and Irrigation Systems are a qualitative and feasible solution for commercial farming in Zambia. I will highlight the cost effectiveness and also give an overview of the available financial support schemes to make quality solar products "made in Germany" available for Zambian farmers. 

5)    Is this solution only for commercial farmers?
We have focused on commercial farming for our contribution within the conference programme as this is the target group of the conference. There are already numerous examples where decentralized renewable energy solutions have boosted small scale farming in Sub-Saharan Africa. In order to learn more about the demand of Zambian Farmers, we have prepared a questionnaire to learn in which areas there is an increased demand for e.g. knowledge transfer or technical and commercial training, know-how transfer. There is a growing number of emerging farmers in Zambia and conference attendees can help us to improve our services and cater their specific needs.

6)    There is quite a large German presence at Agritech Expo this year – why do you think this is?
The strong German presence is the mutually exacerbating effect of two developments: the strong bilateral cooperation of Zambia and Germany in the field of food and agriculture on the one hand side. The ministers of agriculture of both countries in January 2016 signed a declaration of mutual cooperation. The German-Zambian Agricultural Knowledge and Training Center (AKTC) which was officially opened in 2015 in Lusaka is underlining the German commitment to this long term partnership. On the other hand there is a vast potential for food production and agribusiness in Zambian and the doubling of German exhibitors compared to last year is a clear expression of interest from the German private sector. 

7)    Anything else you would like to add?
I am excited to participate in the Agri Tech Expo for the first time this year.  For the newly opened Lusaka Office of the SA German-Chamber of Commerce and Industry it is a perfect opportunity to strengthen existing ties and establish new networks in this vibrant sector.

 
Expo & Sponsorship Brochure

Launch of the World Meat Congress 2016

Uruguay will be hosting the World Meat Congress for the first time. The launch of the Congress was held at the Executive Tower of the Presidency of the Republic and had the participation of the Minister of Livestock, Mr. Tabaré Aguerre, the President of INAC, Mr. Federico Stanham and the President of the WMC´s Organizing Committee, Mr. Fernando Gil.

The Congress has been declared of National Interest by the Office of the President of the Republic (Ministries of Livestock, Economy, Foreign Affairs, Industry and Public Health) and also the Ministry of Tourism.  It is organized by the IMS, the International Meat Secretariat and INAC.

The Congress will take place from November 7 to 9 in Punta del Este, while the IMS Marketing Workshop will be held in the city of Colonia between November 3 and 5.

The Minister of Livestock, Agriculture and Fisheries, Mr. Tabaré Aguerre, said that this Congress will be for all meats, and that it is not just an area for meat trading, but important for society as a whole.

After stating the significance of the meat agribusiness in Uruguay and its high quality, the Minister stressed that this conference is the country´s “calling card”, not only for Uruguay’s meat production, which is what the congress will address, but for its wines, tourism and software industry, actually, for the country as a whole, he said.

The President of INAC, Mr. Federico Stanham, expressed that the key point is the vision of stakeholders and how to make global production sustainable;  stakeholders who sometimes do not reach agreement can find common ground to converge at the Congress.

The Congress has been declared of National Interest by the Office of the President of the Republic (Ministries of Livestock, Economy, Foreign Affairs, Industry and Public Health) and also the Ministry of Tourism.  It is organized by the IMS, the International Meat Secretariat and INAC.

The Congress will take place from November 7 to 9 in Punta del Este, while the IMS Marketing Workshop will be held in the city of Colonia between November 3 and 5.

The Minister of Livestock, Agriculture and Fisheries, Mr. Tabaré Aguerre, said that this Congress will be for all meats, and that it is not just an area for meat trading, but important for society as a whole.

After stating the significance of the meat agribusiness in Uruguay and its high quality, the Minister stressed that this conference is the country´s “calling card”, not only for Uruguay’s meat production, which is what the congress will address, but for its wines, tourism and software industry, actually, for the country as a whole, he said.

The President of INAC, Mr. Federico Stanham, expressed that the key point is the vision of stakeholders and how to make global production sustainable;  stakeholders who sometimes do not reach agreement can find common ground to converge at the Congress.

  There will be more than 30 speakers.

 

Don't miss out

One week till Agritech Expo Zambia opens its gates 
 
 

 
Dr Evelyn Nguleka, Zambia National Farmers Union President says “the all new 4x4 Test Track is another feature that will finally help farmers decide which 4x4 work horse is best for their farm. We have also extended the SME Zone to make sure we bring in as many agro SMEs as possible. This is important to us as we strive to show case the Zambian agricultural industry in totality.

The most important question to ask yourself is HAVE YOU REGISTERED TO ATTEND the region's leading outdoor agricultural expo? 


 
If you've already registered, that's great. We look forward to seeing you next week. Don't forget todownload the updated event brochure to view the programme of the day and familiarise yourself with the site plan. 
Read our latest exclusive interview:
 
Johannes Kurt, Representative from the Southern African-German Chamber of Commerce and Industry in Zambia gives us a sneak preview of what he will address during the Commercial Farmers Focus Day Workshop: “Building a reliable power supply: Solar-Photovoltaics in Agriculture”.

READ FULL INTERVIEW

 
Solar Powered Water Pumping and Irrigation Systems are a qualitative and feasible solution for commercial farming in Zambia
More about Agritech Expo Zambia 2016

Agritech Expo Zambia is completely free to attend. Don’t miss out on Zambia’s leading outdoor agriculture expo from 14-16 April 2016 at GART Research Centre in Chisamba. All you need to do is activate your free expo pass online. 
 

 

Agritech - 2016


Agritech Expo Zambia - 2016. Interactive training workshop programme now available
 

Join free to attend interactive training workshops at Agritech Expo Zambia 
Agritech Expo Zambia brings you interactive training workshops presented by industry experts and leading agricultural enterprises. 
Gain knowledge
 
From modernising the smallholder farmer to optimising commercial farming operations; you're bound to gain practical and innovative solutions to improve your faming business at Agritech Expo Zambia. The workshops are completely free to attend and will take place in the Workshop Tent from 14-16 April.

Download the updated event brochure to view the full interactive workshop agenda.
 
Gain first-hand experience
  • Watch  machinery and sprayer demonstrations from leading equipment suppliers.
  • Test drive utility vehicles on the 4x4 test track.
  • Meet with over 160 local and international agri solution providers.
  • View the outcome of the live crop trials.
  • Network with over 15 000 agriculture professionals.
Obtain purchasing power

Join Zanaco’s presentation in the interactive training workshops from 15-16 April 2016.

Zanaco is the returning exclusive Diamond Sponsor at Agritech Expo Zambia. Read the full interviewwith Managing Director, Bruce Dick and find out what they have planned for this year's event.


Bruce Dick, Managing Director, Zanaco, Zambia

Agritech Expo Zambia is completely free to attend. Don’t miss out on Zambia’s leading outdoor agriculture expo from 14-16 April 2016 at GART Research Centre in Chisamba. All you need to do is activate your free expo pass online.