Two of the biggest UK retailers, Asda and Morrisons have secured long term contracts with suppliers. Morrisons has renewed its agreement with Arla and Dairy Crest until February 2015 whilst Asda is maintaining contract with Arla until August 2013. Asda has increased the premium for its dedicated producers by 0.5 Penny's a litre (US 0.8c per litre) to 1.75 ppl (US 2.8c per litre) coming into effect October 1st.

The NZ Overseas Investment Office has approved the $82 million investment in Canterbury milk processor Synlait Milk. The Chinese company, Bright Dairy, will be taking a controlling stake in the processing plant but will have no control over the supplying farms. The plants products - infant formula and other formulated milk powders ? will be shipped for overseas consumers. This decision comes at the same time as NZ foreign land purchase controls are being tightened; a result of the Hong Kong food giant Natural Dairy?s attempts to buy up the Crafar farms.

UK based Dairy Crest has announced a 0.5 penny per litre (US0.8 cents per litre) increase for its farmer suppliers on its manufacturing contracts? beginning in October. DC saw a 0.75 ppl increase in July for its Davidstow creamery and a 0.42 ppl raise for liquid milk prices in August. DC accounts the latest price raise to improved market returns, improved efficiency and price stability.

Cooperatives Working Together (CWT) is suing a livestock auction market in Greenville, Illinois. The auction market purchased cows under the CWT herd retirement program but allegedly resold the cows to a different farmer.

According to Jerry Kozak, NMPF President and CEO, ?.. there is convincing evidence that the auction market to which a CWT member sold his cows has defrauded the program, and we are pursuing legal action not just on behalf of Kevin Kessler, but for the tens of thousands of other farmers who support CWT.?

CWT Sues Illinois Livestock Auction Market
NMPF Press Release, 14 September 2010
CWT cows allegedly swapped for 'junk' cattle
Dairy Herd Management, 13 September 2010

Singapore based Olam International has made its offer for New Zealand Farming Systems Uruguay unconditional after securing what equates to at least 50% of the shares. The offer of 70 cents a share (a total evaluation of $171 million) is open until 5 pm Friday; all shareholders who have previously accepted the offer will be payed at the increased rate.

Suppliers of Australia?s Tatura Milk Industries and Bega Cheese have gained a 8 cents a kg of butterfat and 20 cents a kg of protein. This should bump average farmgate milk price to approximately 36 cents a litre or $4.80 per kg of milk solids. The strong Australian dollar is said to be masking some of this new found market strength however Bega chairman, Barry Irvin, remains optimistic ?of the industry?moving forwards?. Murray Goulburn?s Grant Davies doubts the cooperative will increase its $4.75 kg/MS but maintains that they will return profit back to the farmers whenever possible.

A $3.2 billion trade balance turnaround is riding a wave of milk atop strong dairy exports. This August saw a 15% increase in exports ($405 million) over last year ? due mostly to a 38% increase in the value of dairy. Forestry is up but meat has dropped. Exports have begun to drop with dairy, meat and forestry around 10% below the previous months trend. ANZ economist Mr Smith believes that exports will continue to decline over the coming months.

Fonterra has confirmed a payout of $6.37 a kg of milk solids for the 2009-2010 season, representing its second largest payout with forecasts of a staggering $7-7.10 a kg for this season ? a potential $9 billion boost to the economy. The forecasted share profit range has been lifted from 30c-50c a share to 40c-50c a share.

The ACCC has re-approved Queensland based Premium Milk to seek members for its collective bargaining group amongst northern NSW farmers. NSW?s Norco is confident that farmers wont shift over to the competition. However it should put pressure on their prices.

Over 400 farmers in Southland, NZ, were instructed to dump milk over the weekend due to snow conditions making roads impassible for collection tankers. Pickup resumed on Monday. Fonterra will be paying farmers who were forced to spill their milk.