Grains Outlook
The outlook for the coming season for supply of grains is good, but the projected surplus depends strongly on the US corn output.However, considering the worldwide level and the distribution of stocks, the situation remains fragile, despite the recent price declines.
Australia wheat and canola areas have a mixed outlook for the key spring months from August to October..
In Europe, The wetter than normal outlook for Europe shows no sign of changing and continues to make it likely that the wheat harvest, especially France and Germany, could see notable quality declines and outright losses.
Dairy
Brazilian dairy imports have fallen sharply this year – despite drastically reduced domestic milk supplies. EU has decided to stop Milk Quotas in 2015. Production quotas will pass definitively into European Union history with effect from April 1 2015, following confirmation that the Common Agricultural Policy will not feature any kind of supply management once the quota regime expires in two years’ time.
Russia’s struggling dairy sector is ripe for investment. Russian agricultural businesses, including dairy enterprises, are being squeezed by high levels of debt, in addition to the new burdens of WTO accession. This makes them ripe for foreign investment.
Australia’s Murray Goulburn has upgraded its opening base milk price which is already at a record AU$ 5.60/kg to AU$ 5.73/kg, a massive 27% increase on the 2012/13 opening level.
Food Companies
General Mills Inc reported an increase of 18% in the group’s income during fiscal year ended May 26 2013, as all of the company’s three operating segments posted a growth in profits. Earnings were reported to be USD 1.85 billion, and cash flow from operating activities increased by 22%.
Scenic Fruit Company of Gresham, Oregon, said it was issuing a voluntary recall of more than 61,000 8-ounce bags of Woodstock Frozen Organic Pomegranate Kernels in the wake of the ongoing outbreak of Hepatitis A that has so far caused over 120 people to fall ill with the virus in the US.
Nestlé has announced it will invest USD52 million, in a program of research and development for its frozen and chilled products at the company’s facilities in Solon, Ohio, US. The focus of the investment will be in creating new products with different and healthier nutritional profiles.