Danone reports sales up 4.5%, fresh dairy sales down year-on-year

Danone has posted a 4.5% year-on-year increase in sales for the second quarter (Q2) of 2015 and sales in the first half (H1) are up 4.6% year-on-year.
Danone has posted a 4.5% year-on-year increase in sales for the second quarter (Q2) of 2015 and sales in the first half (H1) are up 4.6% year-on-year.
Generally, now many operators started to stockpile butter, believing the products will hardly be cheaper.
Prices at this week’s Fonterra Global Dairy Trade (GDT) auction could come under further pressure, according to AHDB Dairy’s senior market analyst Patty Clayton.
Ukrainian enterprises refuse to diversify the production of cheeses by milk powder. In hope of improvement of market conditions they prefer to risk and produce large volumes of cheeses.
Belarus reach records in milk production, but for today the main problem is where to sell surpluses and to be profitably.
During recent negotiations with Kazakhstan in the framework of a multilateral group on its accession to the World Trade Organization (WTO), Ukraine and Kazakhstan reached an agreement on the renewal of imports of Ukrainian dairy products to the Kazakhstan market, according to Interfax-Ukraine with a reference to the Prime Minister Arseny Yatsenyuk.
Lactose-free dairy products will be imported into Russia only subject to special registration, the Deputy Prime Minister Arkady Dvorkovich stated on the sidelines of the St. Petersburg International Economic Forum.
Rospotrebnadzor (Federal Service on Customers’ Rights Protection and Human Well-being Surveillance) offers to tighten the rules for the supply of lactose-free dairy products to Russia from the EU. The supervisory authority suggests that European manufacturers use this provision to import traditional cheeses.
It becomes more free milk in Ukraine and processors have to reduce prices for it in conditions of weak demand for dairy products.
As a whole the situation looks strange on cheese market. There are big problems with sales, but production is growing, and the prices do not fall at all.