2009 IDF World Dairy Summit and Business Meetings - 17th - 24th

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2009 IDF World Dairy Summit and Business Meetings - 17th - 24th


    thth2009 IDF World Dairy Summit and Business Meetings 17 24 September, 2009

    th DATE: 19October, 2009

    PURPOSE To provide an overview of issues discussed and action resulting from the thIDF Business Meetings and IDF World Dairy Summit in Berlin, 17-24

    September, 2009

    This is a collective report prepared by Helen Dornom, Isabel MacNeill, Richard Lange, Robin

    Condron, Karen Armitage, Peter Stahle, Geoffrey Smithers, Barbara Meurer Grimes and Bob


    The International Dairy Federation (IDF) held its World Dairy Summit in Berlin from the 20th to the 24th of ththSeptember, with Business Meetings held prior to the Summit or during the Summit (17 24 September). The Summit attracted approximately 1520 attendees from 52 countries 530 full registrations, approximately 130 day participants per day of the Summit, 140 speakers, 165 posters, 10 conferences with

    45 exhibitors.

An Australian delegation from several industry groups (see below) attended this event and provided input

    into discussions on a range of topics, includng:

; IDF Business Meetings

    ; The Global Dairy Market

    ; Animal Health and Welfare

    ; Nutrition and Health

    ; Animal Feeding and Breeding

    ; Farm Management

    ; Dairy Science and Technology

    ; Food Safety and Hygiene

    ; Food Standards

    ; Sustainability and Environment

    ; Analysis and Sampling

    ; Marketing and Communications

    ; Dairy Policies and Economics.

    Australian participation:

    Dairy Australia: Helen Dornom, Robin Condron, Karen Armitage, Isabel MacNeill,

     Richard Lange

    ADF: Wes Judd

    ADPF: Peter Stahle

    DIAL: Barbara Meurer-Grimes

    NSW Dairy

    Industry Conf: Adrian Drury, Terry Toohey, Bob Young,

     Joe Russo, George Davey

    Consultants: Geoffrey Smithers, Jo Davey

    Bega Cheese: Barry Irvin

    Fonterra: Victoria Landells




     IDF is a key influencer group in global dairy issues it was created by and is now actively supported

    by the dairy sector worldwide. With 53 members and Associate members, it provides a forum for dairy specialists around the world to exchange information on a wide variety of issues from dairy policy

    and economics, science and technology, health and nutrition, through to environment, animal health and welfare. IDF is central to the work of the dairy industry and therefore Dairy Australia and supports all of DA‟s key objectives and strategic priorities.


    As there were many issues discussed of direct relevance to Australia, as well as the networking opportunities at the meetings, it is difficult to provide a succinct list of key outcomes. However, to provide a quick summary, some of these outcomes are listed below but you are encouraged to read

    the full report as there were many areas of interest that will be pursued over the next 12 months prior thto the next IDF Dairy Summit to be held in Auckland, NZ, 4-11 November, 2010. This Summit will

    provide an opportunity for a wider group of Australian dairy industry representatives to network through the IDF meetings:

    Codex: Preparation of IDF positions for Codex Meetings in 2010 - Codex Committee on Milk and Milk Products (CCMMP), Codex Committee on Food Labelling (CCFL), Codex Committee on Food Additives (CCFA), Codex Committee on Food Contaminants (CCFC), Codex Committee on Residues of Veterinary Drugs in Food (CCRVDF), Codex Committee on Food Hygiene (CCFH). The IDF positions mostly support Australian dairy industry positions and are provided to Codex Australia to reinforce the dairy view eg IDF and Australia both support trans fats not being included food labels. FSANZ recently reviewed its position and will not require labelling of trans fats at this time an

    important issue for the dairy industry

Geographical Indications (GIs): Australia and like minded countries are continuing to oppose the

    moves by the Netherlands to make Dutch Gouda and Dutch Edam GIs and therefore stop other countries using these terms.

     Nutrition: IDF will be asked to provide a communication resource to promote the outcomes of the IDF work program especially the positive messages about the dairy industry. Globally, negative messages outweigh positive messages.

    Nutrient richness is a key topic in focus for both IDF and GDP and this was highlighted by Adam Drenowskis appearance at both the Nutrition and Marketing Conference. Consistent global nutrient richness messages and replication of the nutrient richness calculations in countries outside of the US are two key issues that were explored in a number of sessions. GDP is planning an industry meeting in the first quarter of 2010 to clarify messages on nutrient richness; this meeting will be hosted by Dairy U.K. In Australia nutrient richness has been identified as a strategic program to support dairy product consumption. Nutrient richness allows the dairy industry to develop a proposition for consumption of 3 serves of dairy per day that is not solely reliant on dairy‟s calcium content, but recognises the multitude of other nutrients that dairy provides. Dairy Australia will keep closely linked to the work from science, policy and communications perspectives to leverage the benefits of a global move to developing a strong nutrient richness position for dairy.

Milkfat and ruminant trans fats were topics of discussion by IDF and GDP. IDF has played a

    successful role in presenting the case for milk fat in the recent review by WHO/FAO on Fats and Oils. Although the report still has a focus on reducing saturated fats, these are not at the levels advocated by groups such as the American Heart Association. The IDF Standing Committee has undertaken to collaborate to review the science papers used by WHO in order for IDF to provide formal feedback to the process. The GDP Milkfat and Trans Fat group are working well together to develop consensus statements, identify research gaps and provide dossiers of review science papers for use in individual country advocacy. In Australia the Preventative Health taskforce, the Dietary Guidelines and Core Food Group review continue to put focus on saturated fat and therefore milkfat consumption. It is important that we learn quickly form the European and US experience and use the collective science to support our case domestically. In this area the Australian industry is extracting a lot of benefit from the


    collaboration with access to science reviews, early media alerts, and prepared media releases on key issues.

    Nutrition and environmental sustainability as been identified as a new topic by the SC Nutrition and it will be important that we keep connected to this subject and ensure that the implication of any work is positive for the Australian position.

    Farm Practices: IDF is increasingly partnering with FAO and OIE to develop Guidelines for animal welfare and this area is a key priority for DA. Ensuring international standards and guidelines for the integrity of farming practices are consistent/compatible with Australian approaches will help avoid export markets placing unnecessary burdens and duplicative requirements on Australian farmers.

Antibiotic Resistance: The IDF work in this area will help support the Australian dairy industry‟s

    continued access to necessary animal treatment drugs. A recent IDF report has shown no increase in resistance through the use of mastitis drugs.

Launch of Global Dairy Agenda for Action Climate Change: This declaration was signed by

    seven organisations on behalf of the world‟s dairy associations and companies. The Global Dairy

    Agenda for Action is a pledge to reduce carbon emissions as part of its contribution to help address global warming. This pledge builds on past performance to address climate change. ; The public launch includes more than 260 projects across 40 countries and is part of the

    industry‟s broader sustainability objective to build economic, social and environment value for our


    ; In summary the Global Dairy Agenda for Action commits to:

    o Promote the development of a standard methodology framework for assessing the carbon

    footprint of milk and dairy products

    o Promote adoption of world‟s best practice

    o Seek to advance the measuring and monitoring emissions on-farm and in manufacturing

    o Promote improved farmer understanding of agricultural emissions and opportunities to

    reduce greenhouse gas emissions on farm and,

    o Support sharing of knowledge and aligning research efforts.

    ; The Australian dairy industry did not directly sign the Agenda for Action. It was signed by

    organisations for which we are a member including International Dairy Federation (IDF) and

    Global Dairy Platform (GDP).

    The following pages provide a broad overview of all the many issues discussed, outcomes from the meetings, and any further work that has direct impact on the Australian dairy industry and the work program of Dairy Australia. More details on some of the IDF Standing Committee and Action Team meetings are appended to this report.



Standing Committee on Standards of Identity

    Standing Committee on Food Additives

    Standing Committee on Food Labelling & Terminology, and

    Task Force on Export Certificate for Milk and Milk Products - Report by Karen Armitage

     thStanding Committee on Standards of Identity Thursday 17 Sept 10am 1pm:

Attendees: Karen Armitage

    The work of this Committee is directly related to the work program of the Codex Committee on Milk and Milk Products (CCMMP). IDF, through this Standing Committee is formally recognised by Codex as the expert technical advisor to CCMMP. Discussion in Berlin focused primarily on preparations for the next and likely last meeting of the CCMMP in February 2010. The following covers the major agenda items:

    ; Codex revised draft Standard for Processed Cheese - It is likely that Codex will abandon

    this work item. Australian dairy industry thinking at this time is that the existing „old‟

    1978 Standard should be revoked as it does not reflect current cheese manufacture and

    could be used as a technical trade barrier in the future. IDF will develop a paper outlining

    the pros and cons of keeping/revoking the Standard to help countries (industries and

    Governments) develop their positions to CCMMP. Karen Armitage joined the action team

    established to develop this paper.

    ; Finalisation of the Codex Fermented Milk Drinks Standard This Standard is near

    completion at CCMMP. The Australian dairy industry continues to support the

    development of the Fermented Milk Drink Standard (Yukult type products) as Australian

    powders are used in their manufacture in large Asian markets. The unresolved issue of

    the minimum percentage of dairy products (40% vs 50%) remains controversial, with

    Australia supporting 40% as a means of providing flexibility in product manufacture.

    Although this issue is largely political, IDF will be available at CCMMP to provide technical

    assistance if required.

    ; Alignment of CCMMP Milk Export certificate and CCFICS Generic certificate - An action

    team was formed (Karen Armitage is a member) to consider dairy industry views related

    to the request from the Codex Alimentarius Commission for CCMMP to revise the Model

    Export Certificate for Milk and Milk Products. The aim is to ensure consistency with the

    Generic Model Official Certificate which has been developed in parallel by the Codex

    Committee on Food Import and Export Inspection and Certification Systems (CCFICS) -

    included in the agenda for CCMMP in February 2010. The Australian industry and AQIS

    have a strong interest in streamlining certification processes as much as possible,

    particularly to facilitate AQIS‟ EXDOC electronic certification system. While largely an

    editorial task, an area that could be controversial at CCMMP next February is whether

    country of origin (CCFICS cert) or country of dispatch (CCMMP cert) should be described.

    ; Appendices in CCMMP commodity Standards a number of Codex dairy Standards

    contain appendices intended for voluntary application by commercial partners and not for

    application by governments. However Codex has raised the issue of the Standards in

    their entirety being subject to the WTO/TBT agreement. The Standing Committee was

    strongly of the view that the status quo should remain that the appendices not be

    integrated into the main body of the Standard, nor should the appendices be removed.

    An action team was established to provide a paper to assist countries to develop their

    positions to CCMMP - Karen Armitage is a member.

    ; Dairy Commodity Standards reference of Maximum Residue Limits. Similar to the

    MRLs in our FSANZ Code, Codex MRLs relate to the raw commodity, ie milk. The MRLs

    developed by Codex (by the Pesticides and Veterinary Drugs Committees) are then


    referenced in the commodity Standards including the dairy Standards. However the

    Codex secretariat has in error described the MRLs as referring to the „products covered

    by the Standard‟ ie the cheese, butter, powders etc. This is inappropriate application of

    MRLs, and if implemented by a trading partner could negatively affect trade. IDF will

    develop a paper for CCMMP to explain the issue and why the Standards need to be

    amended, to refer to the „milk‟ to which the MRLs apply. Karen Armitage has joined the

    Action team established to write this paper.

     thStanding Committee on Food Labelling and Terminology Thursday 17 Sept 2pm 6pm:

Attendees: Karen Armitage, Jo Davey, Bob Young, Joe Russo

    As with the other Standing Committees related to food standards described above, this Standing Committee considered the agenda, and development of IDF positions for the next Codex Committee on Food Labelling (CCFL) in 2010.

    Of note is the Codex implementation of the WHO global strategy on diet, physical activity and health (which is also being discussed in the Codex Nutrition Committee). Of particular interest is a work item on mandatory nutrition labelling and what nutrients should be declared. IDF positions are being prepared (in collaboration with the SC Nutrition and Health) on trans fats, dietary fibre, added sugars and sodium

    In particular the Australian industry is concerned to ensure that trans fats do not get included in the scope of nutrients that must be declared on food labels. The outcomes of this work at the Codex level will ultimately influence the food labelling requirements, not only in our export markets but also in the FSANZ Food Standards Code.

     thStanding Committee on Food Additives Thursday 17 Sept 8am 9.45am, thFriday 18 Sept 9am 5.30pm:

Attendees: Karen Armitage

     The work of this Standing Committee largely focused on the preparation of IDF positions for the next Codex Committee on Food Additives (CCFA) in 2010.

    An Action Team (Karen Armitage is a member) will assist CCMMP to identify food additive provisions that are technically incorrect and need to be corrected before CCMMP adjourns.

Utilizing networks - Meeting in the margins

    Geographical Indications ‘Gouda Holland’ Application by the Dutch Government to

    protect the names Gouda Holland and Edam Holland

Attendees: Karen Armitage

    DA, in placing its formal objection to the Dutch government application to protect the name Gouda Holland as a GI, has collaborated with like-minded countries extensively in past months, notably with the NZ, US and German industries by sharing information on positioning and strategy. The EC is due to meet soon to decide if the Dutch applications will be accepted or not. While it is anticipated that the answer will be „yes‟ , our collective objections have made it clear that we want

    to see the generic names „gouda „and „edam „ recognised in EC law.

     A meeting was held in the margins of the IDF Summit between US, NZ, German and Australian industries (Karen Armitage attended for DA) in which our German colleague was able to provide information on the potential decisions that the EC may take, based on legal precedents where the generic status of other commodities has been sought by objecting parties (balsamic vinegar,


    ricotta cheese and reindeer meat). What makes the current Gouda and Edam Holland applications unique is the tabling of objections from outside the EU. According to our German colleague, the EC is unclear how to manage the 3 non EU country objections which formally remain tabled. He will continue to inform us of developments within the EC as they come to hand in coming weeks.

     thStanding Committee on Residues and Chemical Contaminants, Thursday 17 Sept, 2pm th6pm, Action Team on Antibiotics, Friday 18 Sept 9am 11am Report by Helen Dornom

SC Residues and Chemical Contaminants

    Attendees: Helen Dornom, Adrian Drury, Terry Toohey

AT Antibiotics

    Attendee: Helen Dornom

    One of the key outcomes sought from these meetings was to ensure Australia is able to continue to use effective animal health treatments. With the growing emergence of super bugs in the human health arena, the animal industries are an easy target to blame for the development of antimicrobial resistance in humans. These treatments may be banned if the global dairy industry cannot demonstrate prudent use of antibiotics.

Key Outcomes:

    - Agreed to publish the paper on Mycotoxins of importance for the dairy industry;

    - Agreed to finalise the draft Guidelines on the Prudent Use of Veterinary Drugs in the dairy

    industry, bringing them into line with the IDF/FAO‟s Guide to Good Dairy Farming

    Practices and Animal Welfare. The Guidelines will also contain a segment on

    antimicrobial screen tests and allied confirmatory tests, working with the SCAMA.

    - Agreed to promote the principles of Integrated Chain Management being incorporated into

    the work of IDF and recommend that the ICM Principles paper and the Inventory of

    methods and procedures to monitor the integrity of supplier‟s milk should be published

    together in the IDF Bulletin as soon as possible.

    - Agreed to focus on the proposed new work item Monitoring the Codex work on animal

    feeds from a potential contaminants perspective.

    The SC will focus on developing a risk profile for animal feeds and nanotechnologies for discussion at the next SC meeting in Auckland in November. The SCRCC‟s main interest in the

    work of Codex currently relates primarily to antimicrobial resistance.

Helen Dornom has finished her term as Chair of the Group will stay on as Deputy Chair until a

    new Deputy can be found.

    Action Team on International Milk Promotions Group, AT Nutrimarketing, Standing Committee on Marketing Report by Richard Lange

     thAction Team International Milk Promotions group Friday 18 Sept, 8am -12 noon

    Attendees: G Davey (DPINSW), R Lange (DA)

Key Agenda items and Actions:

    IDF and IMP

    ; IMP group is an Action Team of the Standing Committee of Marketing and this forms part

    of the Economics, Policy and Marketing work program.

    ; In recent years IDF has been emphasising itself as a credible scientific organisation,

    building on its role as a non-government organisation (NGO) representing the industry on

    issues associated with Codex and WHO. This emphasis on science exacerbated some

    isolation among IDF members in non-scientific disciplines such as marketing.

    (Unfortunately the summit itself had a number of incidents that further isolated the

    members of the Marketing disciplines within IDF.)


    ; The emergence of organisations such as Global Dairy Platform has prompted greater

    scrutiny of the relationship between IDF and the IMP group who has struggled for many

    years with the bureaucracy of IDF. Since 1972, members of IMP have shared marketing

    insights, intelligence and marketing campaigns and results. The group was established

    outside of the IDF in a similar way to the Utrecht nutrition group. ; The IMP group is a heterogeneous group of national associations with different sizes,

    roles and funding sources and structures. However, a common objective is the marketing

    and promotion of demand and sales of dairy food often with collaborative arrangements

    with dairy companies/processors. Hence the closer association of the IMP group with

    commercial interests of GDP and other organisations such as SAI platform.

Strategic engagement with GDP and dairy companies

    ; GDP has proposed a partnership with IMP for communication support and resources such

    as the website. However, not all the IMP group are members of GDP and there is debate

    whether the GDP represents private interests leveraging this public good activity. Action points:

    ; It was resolved to seek board support for a corporate communications resource for IDF

    head office;

    ; SCM would continue to provide comment and advice on effective materials for

    environment including factsheets and website. The work around the declaration is part of

    this communication support from the SCM for IDF;

    ; IMP would work cautiously with GDP on the proposed partnership. A new initiative will be

    a „Utrecht-style‟ invitation day for company marketing representatives on specific topic as

    part of the mid-year meeting;

     thJoint Action Team - Nutrimarketing (SCHN & SCM) - Friday 18 Sept 12 noon -1pm

    Attendees: V Landells (Fonterra), R Lange (DA)

    ; A rushed meeting that had key people coming and going such that there were different

    agendas and a lack of understanding.

    ; The meeting struggled to establish a common work area. Nutrient richness was

    discussed but there were questions on what problem was being addressed? What was

    the process? What materials and audience? It was decided to defer issues to other

    meetings during the summit (subsequently it was decided that the Action team could be

    folded as the work programs were proceeding through other groups such as GDP,

    European Dairy Marketing Forum and Nutrition Standing Committee.

    ; At other meetings it was resolved that each standing committee should think about the

    objectives of a common work program likely to be nutrient richness. In the GDP forum, a

    proposal for a workshop, hosted by Dairy UK in Feb 2010, may help to clarify messages

    on nutrient richness.

     thStanding Committee Marketing Friday 18 Sept 1pm 5pm

    Attendees: G Davey (DPINSW), R Lange (DA)

    Meeting summary

    ; A well attended meeting with representatives from IDF head office, other standing

    committees and new members including Brazil, Mexico, Israel and Iran. ; Key issues being discussed were consistent with the theme from the entire conference:

    nutrient richness, communication on environment, Declaration Global Dairy Agenda for

    Action, market demand growth.

    Matters referred from other committees


    ; IDF has identified strategic priorities in nutrition and environment and an enhanced

    function in communications. There are no economics, communication or marketing


    resources in IDF head office, so the push for communication has lead to significant call

    during the last year on voluntary input from the Standing Committee of Marketing to assist

    in the development of materials for environment, nutrition and work from other standing


    ; SCM will help where relevant with communication tools mostly factsheets, websites and

    relevant information (This is not to be confused with marketing campaigns or scientific


    Food labelling (Cary Frye)

    ; New concerns on carbon emission labelling what is dairy‟s response?

Work program items and Actions:

    School Milk - Meeting discussed development of new marketing programs in developing countries and ways of supporting school milk programs. FAO (Michael Griffin) will resume activity next year. School milk conferences in South Africa were well attended and supported by IMP group. An IDF event on School Milk may be included in WDS Auckland in November 2010

    IMP/SCM mid-year meeting: Meeting will be held in Montreal May 19-21 and processor invitation day on 22 June

    ; Topics for the program will include Creating Consumer Value, Nutrient rich campaign from

    European Dairy Marketing Forum and other European trends such as „Hay Milk” and

    „Natural‟ Milk,

    IDF Marketing award: A new IDF marketing award will be pursued via a partnership with Dairy Innovation Magazine. The award presentation will look to form part of the marketing conference program at the IDF Auckland summit 2010.

IDF Berlin Marketing Conference: Summit Marketing Conference had over 130 registrations.

    The IMP trophy will be profiled at the Open Forum and awarded after the Leaders Forum during the Summit. The marketing conference included two joint sessions with the Nutrition Conference and the Environment Conference to showcase the key themes of nutrient richness and sustainability, respectively. The session on Nutrient Richness with Adam Drewnowski Rune Delgard and Greg Miller identified communication positioning and tools for consumers. The Sustainability session included Nestle‟s program „Creating Shared Value‟ and Chris Brown‟s

    (ASDA supermarket) perspective on whether consumers demand „green products‟.

     thGlobal Dairy Platform - Annual meeting Saturday 19 Sept , 9am -3pm Report by Richard


Attendees: W Judd, R Lange, I MacNeill, P Stahle

    It was a well attended meeting with strong leadership from Arla CEO Peder Tuborgh in the absence of Andrew Ferrier.

Extract from meeting notes

The meeting reviewed three key areas:

    ; Negative messages and intense pressure to reduce Saturated Fats (SFA) linked to dairy

    products by governments and nongovernmental organisations

    ; Heightened awareness and concern by consumers and governments about the environment

    and greenhouse gas (GHG) emissions from the dairy sector

    ; The erosion of milk‟s healthy image and dietary importance coupled with increased beverage

    competition. In short, we are facing a global situation where the negative messages outweigh

    the positive and highlight the need for consistent communications about the unique nutrient

    benefits of dairy products.


    Milk fat

    ; Cindy Schweitzer (GDP) indicated there were signs of a shift in scientific thinking on milk


    ; Dr. Henrik Jørgen Andersen (Arla) made the case for collaboration with a number of

    global Concerns about Saturated Fat including EFSA Dietary Reference Values, push by

    American Heart Assoc: for 7% saturated fat in diet (currently 10%), UK Campaign by

    heart foundation, Denmark fat Tax

    Climate change

    ; Brian Lindsay (SAI platform) outlined the work on a common methodology for Life Cycle

    Analysis and the positioning for dairy based on Dairy Australia‟s nine box framework

    ; Sarah Paterson (Fonterra) explained the global Agenda for Action on Climate Change and

    identified a number of issues associated with environmental policy in the lead up to


Nutrient Richness

    ; Jay Waldvogel (Dairy Farmers of America) made the case for a simple single positioning for

    dairy Nature‟s perfect food

    ; Richard Lange (DA) outlined a process to develop the message based on objectives, target

    audience and common platform of nutrient richness.

Findings from the meeting will be released shortly on and meeting

    presentations are saved in TRIM.

     thStanding Committee on Farm Management Friday 18 Sept 2 6pm Report by Helen


    Attendees: Helen Dornom, Robin Condron, Adrian Drury, Terry Toohey

    IDF is increasingly partnering with FAO and OIE to develop Guidelines for animal welfare and this area is a key priority for DA. Ensuring international standards and guidelines for the integrity of farming practices are consistent/compatible with Australian approaches will help avoid export markets placing unnecessary burdens and duplicative requirements on Australian farmers. To date, DA has been able to achieve international guidelines that reflect Australian practices and do not create trade barriers.

    Key Outcomes:

    There were many attendees at the meeting including many farmers. This was evidence that the

    revamped work program was well received. Helen Dornom is a member of a small ad hoc working group that reviewed the work program and will monitor developments to ensure the SC remains relevant to the work of IDF and recognises other groups working on farm management issues (eg IFAP).

    The IDF/FAO Guide to Good Dairy Farm Practices (printed in 2004) will be reviewed and consideration given to incorporating sustainability and social responsibility issues in the Guide. Helen Dornom will lead this group a new work proposal needs to be developed and endorsed by

    IDF National Committees.

    IDF agreed that SAI could use the IDF/FAO Guide to Good Dairy Farm Practices as the basis for the SAI Principles and Practices for Sustainable dairy Farming. The SAI has adapted the IDF Guide to include social, environmental and economic sustainability principles. While IDF does not endorse the SAI Guidelines, they do at least reflect some of the IDF/FAO guidelines but go

    further incorporating economic, environmental and social responsibility into the guidelines. It was agreed to develop Guidelines for Hygienic Dairy Farming, in line with the Welfare Guidelines and as part of the Guide to Good Dairy Farm Practices. Helen Dornom is a member of the AT.


    A new work item on Animal Feeds has been proposed by the SPCC. This will be a joint work item under SC Animal Health and SC Farm Management. Australia will nominate a representative onto the Action Team.

     thStanding Committee on Dairy Policies and Economics Saturday 19 Sept 9am 1pm

    Report by Peter Stahle

Attendees: Peter Stahle, Adrian Drury, Terry Toohey

    Key Issues Raised:

Monika Wohlfarth (Zentrale Milchmarkt Berichterstattung, Berlin)

    2009 situation - dynamics of global dairy market still affected by the high prices of 2007, where:

    ; Higher prices stimulated production

    ; Production grew faster than consumption

    ; International trade collapsed

    ; Growth of market and liquid milk interrupted


    ; Production will grow slowly

    ; Farmers will go out of business

    ; Consumption will grow faster as economies recover

    ; Prices will be volatile until stocks reduce

Jim Begg (Dairy UK Ltd)

    Key factors affecting different countries

    Germany poor corn harvest

    UK good weather stable markets. Trying very hard to standardize methods on defining and delivering on a carbon footprint system and meaningful label for food.

    EU countries more exposed to world markets through exports are clearly less confident and prices more volatile than countries with high domestic consumption (not exporting)

    ; Farmer protest action is on the rise but of questionable effect and not supported by

    mainstream farmer groups. In France only 6-8% of dairy farmers are striking, Germany

    150 farms are involved, Holland 19 farms. They are demanding milk production be

    reduced so prices will rise, coupled with total protection. German Farmers Union has

    publically distanced themselves from the strike action.

    ; Lower farm prices received by farmers are not reflected in retail prices ongoing cause of

    farmer disatisfaction

    ; Regulated systems limit ability of countries to be responsive to rapidly changing market

    signals and conditions. Becoming a great problem particularly where governments,

    farmers, processors and retailers are collaborating in creating unsustainable support

    systems, eg Belgium, and Greece which have unilaterally introduced restrictions on

    imported dairy products.

    ; Regrettably the trade restrictions of the EU destined to sunset in 2015 are rapidly being

    overtaken by a rash of unilateral protectionist policies and actions.

    US Must introduce import controls to support the quota system. The support program for products made during the months August, September, October (and made available to government for purchase) will continue to grow until at least December as product is incrementally delivered.

    Norway industry have convinced Government to increase prices

    Canada smugly content

    Italy watch out for mandatory labeling of country of origin

    Retailing globally there is discontent about the margins taken at different points along the supply chain. Arguments on who should get more and by how much are unconvincing.

Nutrition EU Commission highly likely to knockback scientific evidence on dairy nutrition not

    on scientific grounds but on some minor procedural issue. Could be a real problem.


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