The Dairyglobe is a weekly newsletter produced by Freshagenda that provides a concise summary of major events in the domestic and global dairy markets that are relevant to the market and operating environments for the Australasian dairy industry. The newsletter is compiled from a range of global news and market information sources. It contains updates on developments relating to:
- Milk production, processing and market activity
- World trade in dairy products
- Markets affecting production inputs
- US and EU industry and trade policy
- Retail and consumer trends
- Corporate developments relevant to dairy
Freshagenda produces and distributes a free monthly insights newsletter called Horizons – a concise summary of trends, innovations and other insights that are relevant to our clients and associates in the food industry.
Horizons monitors ongoing developments under the following themes:
- Volatile world – Volatility in food markets, competition and agrifood input costs.
- Discerning consumers – how affluence, ethnic and health influences, and aging are making consumer segments more complex.
- More from less – pressures on finite natural resources and capacities to sustain pace with demands of the world’s population.
- Disruptive technologies – the advances in technologies for how we make things and how we connect.
- Evolving business models – innovative business models that are redefining how value is created and captured.
Commodity Milk Value
Freshagenda’s Commodity Milk Value (CMV) provides industry participants with timely updates of the outlook for expected commodity milk farmgate values (“FGV”) for the next two years. This can be applied to Australian, New Zealand, US and European industry contexts.
We can clearly explain, package and make the CMV accessible to users (farmers, processors, and other participants) as appropriate for their business decision-making.
How the Commodity Milk Value is calculated
Our process calculates a commodity milk value in line with the diagram on the right as follows:
- Draw on our existing Global Dairy Directions analysis of projected commodity product prices (for milk powders, cheese and butter), taking account of relevant exchange rate forecasts.
- Assuming a relevant expected product mix for major manufacturers
- Applying direct conversion and overhead costs
- Deducting an allowance for profit retention
- Calculating returns to the relevant milk pool and determine the average commodity milk farmgate value (FGV) per kg milk solids.
This can then be applied to provide forward indications of likely available full-year farmgate milk prices, by assessing the likely scope for further added value in each region.