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Mexico's Grupo Lala said sales increased 7% to $3.2 billion. The dairy processor attributed the growth mainly to a higher value-added product mix, to non-organic growth as a result of new products and brands in the portfolio, to volume growth and to the company´s price increase strategy.
At this year’s China Dairy Symposium, the discussion was about how the Chinese dairy market can satisfy the increasing demand for milk, which will continue to outpace domestic supply.
Over the past two decades the annual amount of milk collected has increased from 6.6 million liters to 80 million liters, sourced from around 16,000 farmers. The factory produces Nestlé branded products such as Nido, Nescafé, Cerelac and Maggi.
Fonterra Chief Executive Officer Theo Spierings said the new plant would enable the co-operative to meet growing demand for UHT products in Asia. “The new plant will enable us to increase our UHT production by 100% over the next few years.
Owing to the drastic growth of imports, China will implement the new “Test, Quarantine and Supervision Methods for Import and Export of Dairy Products” beginning in May. There is a strengthened test, quarantine and supervision over the importation of dairy products, which are intended to improve the overall quality level of imported products.
Saputo announced the closure of its cheese manufacturing plant in Heiden (Germany) and enters into a 30-day consultation period for the proposed closure of its facility in Newcastle Emlyn, Wales (United Kingdom). The two plants were acquired in 2006 and 2007 respectively
The Dairy Products Division (Canada) continues its investment strategy in product categories that offer growth potential, namely specialty cheeses and value-added milk products. The USA Dairy Products Sector continues to seek opportunities to mitigate the effect of higher milk costs resulting from amendments to the milk pricing formula in California.
Through the first 10 months of 2012, the volume of major products increased a combined 5.5 percent to more than 2.8 billion lbs. Although growth had softened in recent months, U.S. cheese and whey protein concentrate were poised to shatter volume records, and nonfat dry milk/skim milk powder was tracking at or near record levels. For the second consecutive year, U.S. export volume accounted for more than 13 percent of total milk solids produced in the United States.
The top-end UHT milk products are mostly 100% foreign made and imported mainly from New Zealand, Australia, Germany and France.
Both the feed cost and labor cost for dairy farming have witnessed substantial growth in recent years, reports Beijing Shennong Kexin Argibusiness Consulting Co.