A boycott of Wesfarmers products by West Australian Farmers Federation (WAFF) members has been narrowly avoided, at least in the immediate future.

 WAFF members are angry about their loss of earnings due to the ongoing price war between Coles and Woolworths, where milk has reached $1/litre. A motion to boycott all Wesfarmers, the owner of Coles', subsidiaries was made but not voted on.

A meeting between WAFF and Wesfarmers recently took place and the potential boycott has been prevented for now. WAFF president, Dale Parker, described the talk as "very positive" and said that WAFF "will continue ongoing discussions with Wesfarmers over the coming weeks".

While the current talks revolve around Coles,  Mr Parker said that "WAFarmers wants to work with all food retailers to develop a supply model which ensures locally available product is their preferred source, pricing structures are sustainable and to develop a program which highlights to consumers the source of their product".

Farmers' boycott on milk price cuts averted, for now
Sue Neals, The Australian, 27 April 2012

WAFarmers talks prices with Wesfarmers
Sarah Scopelianos, The Weekly Times, 26 April 2012

The Michael Fay led consortium, Crafar Farms Independent Purchaser Group (CFIPG), have launched an appeal to New Zealand’s High Court, seeking to overturn the Overseas Investment Office’s (OIO) recent approval of the sale of the Crafar Farms to Chinese investors, Shanghai Pengxin.

CFIG successfully appealed the OIO’s previous decision to approve the sale and are doing so on the same grounds as last time. These are that “Shanghai Pengxin fails the test of business experience and acumen relevant to the overseas investment'', according to CFIG’s lawyer, David Cooper.

CFIG spokesperson, Alan McDonald, says that the group “want to keep these farms in local ownership and contributing fully to the local economy".

Latest govt approval for Shanghai Pengxin to buy Crafar Farms to be appealed in High Court by Michael Fay-led NZ consortium
Alex Tarrant, interest.co.nz, 27 April 2012

Crafar appeal confirmed
Business Day, 27 April 2012

Unpacking the Crafar controversy
Bronwyn Howell, The National Business Review, 23 April 2012

The future of Australian Dairy Farmers (ADF), the national lobby group for, well, Australian dairy farmers, may be on the edge.  Next week dairy farmers will vote on whether to approve a proposed restructure package for ADF. The restructure would reduce the number of board members from the current fifteen to only five.

ADF President, Chris Griffin, has suggested that the organisation would become "totally ineffectual" without the restructure. ADF restructure chairman, Noel Campbell, says another reason for change is that “ADF was not financially viable over the last two to three years”.

Campbell believes that “there will be very little change” to the restructure from a dairy farmer's point of view, a perspective that has been criticised by Simone Smith of The Weekly Times.

ADF restructure overdue
Simone Smith, The Weekly Times, 26 April 2012

Australian dairy Co-operative Murray Goulburn (MG) has announced its third farmgate milk price increase for the 2011/12 season.

Their latest step up is of $0.20/kg of protein and $0.08/kg of buttermilk fat. This brings MG’s average milk price to $5.35/kg of milk solids, 5 cents greater than their previous end-of-year forcasted price of $5.30/kg of milk solids.

Managing Director, Gary Helou, says that “The price increase has been achieved through cost reductions and operational efficiencies, which have improved our margins despite a softening in world market prices and unfavourable foreign exchange conditions”.

Despite this good news Helou warns that “the combination of excessive supply as well as a strong Australian dollar would put a dampener on the price outlook for next year."

Murray Goulburn gives a cautious milk price rise
Warwick Long, ABC Rural, 25 April 2012

MG milk price increase
Simone Smith, The Weekly Times, 24 April 2012

Third increase in farmgate milk price for 2011/12
Murray Goulburn Media Release, 24 April 2012

Australian milk sales are increasing. March sales were 208.1 million litres, 4.4 per cent higher than the same time last year. Total sales so far this year are 1,789.5 million litres, a 3.8 per cent increase compared 2011.

Milk sales this year have increased across all states, with the biggest growth in Queensland and Western Australia, of 5.4 per cent and 5.6 per cent respectively.

The largest increases in product sales this year have been in reduced fat milk - 8.7 per cent - and fresh flavoured milk - 4.6 per cent. Full cream milk sales have increased to 871.6 million litres, a 2.7 per cent rise compared to the same time last year, and sales of both UHT and no fat milk have fallen by 2.7 per cent and 1.8 per cent respectively.

Australia's February dairy production figures have also been released. February production of butter, cheese and whey powder increased by 7.8 per cent , 20.5 per cent and 18.1 per cent respectively. Butteroil, SMP, BMP and WMP production were all down by 38.5 per cent, 13.3 per cent, 22.3 per cent and 10.5 per cent respectively.

National
Dairy Australia, Milk Sales, 19 April 2012

Summary
Dairy Australia, Manufactured Production, 20 April 2012

Warrnambool Cheese and Butter (WCB) announced an increase in their milk price paid to suppliers last Friday.

The Australian processor have raised their price by 6 cents per kg of butterfat and 15 cents per kg of protein. This brings WCB’s annual weighted milk price to $5.35 per kg of milk solids.

WCB chief executive, David Lord, said that “It is pleasing to again deliver this price increase”. However Lord cautioned that as a consequence of decreasing global milk prices and a strong Australian dollar “we are taking a cautious approach to the remainder of the year”.

Australian co-operative Murray Goulburn also raised their milk price last week.

WCB steps up
Simone Smith, The Weekly Times, 27 April 2012

Dairy Crest has announced it will lower the price of milk paid to some of its liquid suppliers. The price will be decreased by 2 pence per litre and will apply to suppliers on liquid non-aligned contracts.

The company has stated that a "very challenging market" has given them "no alternative" but to cut the milk price and that they still remain “totally committed” to their farmers.

The move has been condemned by both the National Farmers Union (NFU) and the Department of Environment, Food and Rural Affairs (Defra). A Defra spokesperson said that “This is very disappointing news and proves why there needs to be real change within the British dairy industry", while NFU dairy board chairman, Mansel Raymond, called the decision "outrageous".

Defra and NFU condemn Dairy crest price cut
Alistair Driver, Farmers Guardian, 26 April 2012

Dairy Crest drops milk price by 2p
David Boderke, Farmers Guardian, 26 April 2012

May Liquid Milk Price Change
Dairy Crest Direct Media Release, 26 April 2012

Fonterra may close its specialty cheese business Kapiti.

Fonterra are conducting a review of all their speciality cheese factories, but a Fonterra spokesperson told DairyReporter.com that so far “there have been no decisions made" about the future of the factory.

The Kapita Cheese factory is located in Paraparaumu and employs approximately 66 staff.

Fonterra confirms NZ speciality cheese review
Ben Bouckley, dairyreporter.com, 25 April 2012

Fonterra may close Kapiti Cheese plant
The Dominion Post, 25 April 2012

UK supermarket Sainbury’s has introduced a new milk-pricing model after a vote in favour of it by their dairy suppliers.

The Cost of Production model will take effect from May 1 and is intended to reward their "farmers for outstanding animal welfare and environmental standards" and to be responsive to volatile input costs like feed, fuel and fertiliser. 

Sainbury’s CEO, Justin King said that "This is great news for farmers and testimony to the incredibly close relationships we've built over the past five years through our industry-leading Dairy Development Group".

The opening price will be 30.30 pence per litre and all current Sainsbury Dairy Development Group suppliers will be moved onto the new model unless they leave the group prior to 1 May.

Sainsbury's new milk pricing model kicks off at 30.3ppl
Howard Walsh, Farmers Guardian, 23 April 2012

Cost-based pricing for Sainsbury's milk suppliers
Paul Spackman, Farmers Weekly, 20 April 2012

Sainsbury’s dairy farmers agree new pricing model
Sainsbury's Press Release, 20 April 2012

Fonterra has announced a second vote on their controversial Trading Among Farmers (TAF) scheme. Chairman, Sir Henry van der Heyden, says the debate is "splitting the shareholder base" and "damaging Fonterra's reputation".

Management believes that the majority of farmers support TAF but that a vocal minority have been able to make themselves heard in the media. Sir Henry says many of the minority falsely believe the proposed scheme is significantly different from the one 90 per cent of participating farmers voted for in 2010.

Fonterra has plans to increase its overseas presence and CEO, Theo Spierings, says "Fonterra management needs a stable permanent capital base to deliver the strategy", which TAF would provide.

The vote will take place at a special shareholders meeting on 25 June.

NZ's Fonterra shareholders to have final vote on share scheme
Reuters, 23 April 2012

Fonterra allows second vote
Andrea Fox, Business Day, 23 April 2012

Fonterra Special Meeting Of Shareholders
Fonterra Media Release, 23 April 2012