-April 25,2019-
Dean Foods struggles – mirrors dairy industry
Dean Foods Company is struggling with lower sales like much of the US diary industry.Its stock is selling around $1.74 per share this week, down from $11 share last summer.Canadian dairy giant Saputo is said to be interested in buying the company.
Dean Foods is one of the largest processors and distributors of fresh fluid milk and other dairy products. That includes butter and ice cream. Brands include DairyPure, TruMoo, Land O’ Lakes, Country Fresh, Dean’s, and many others. Competition from alternative “milk” offerings is weighing on DeanFoods and rest of the dairy industry including Dairy Farmers of America (DFA). DFA on March 20 that reported a$1.1 billion drop in net sales in 2018. The firm said that the 7.5% decline in sales was primarily due to lower milk prices.
Almond acreage climbs again as tariff impact less than feared
USDA’s National Agricultural Statistics Service (NASS) reports that California’s almond acreage continued to increase in 2018. California’s 2018 almond acreage is estimated at 1,390,000 acres, up 2 percent from the 2017 acreage of 1,360,000. Of the total acreage for 2018, 1,090,000 acres were bearing and 300,000 acres were non-bearing as growers contuse to plant new orchards.
The value of production is likely to be over $6 billion when all the 2018 numbers are in. That would be double was we saw in 2010 and compares to $5 billion in 2016 and $5.6 billion in 2017.
News reports suggest world prices for almonds and nuts are rising despite the impact of the U.S.-China tariff battle. One report says almonds are selling for $3.25 per pound, up 8% since the September-October period of last year. The U.S. produces 80% of the world’s almonds. California is top producer,
“Last July, No. 1 importer China imposed a 50% retaliatory tariff on American almonds amid the trade conflict with Washington. Yet, while the Almonds Board of California reported a 25% year-on-year decline in shipments bound for mainland China and Hong Kong from August to February, a trading company representative said procurement of American almonds did not decrease as much as anticipated.
Shipments in the U.S. rose 4%, while those to Canada and Mexico climbed 10%. Exports to Southeast Asia were up 13%, and Japan procured 5% more.
Almonds, touted for their health and beauty benefits, are popular worldwide for snacks, sweets and beverages like almond milk”.