Market News

Cheese starts the week a little higher

Cash cheese increased to start the week on the Chicago Mercantile Exchange dairy markets. Barrels increased 4.75 cents on 11 sales, blocks gained three-quarter-cent. No activity in the butter market and nonfat dry milk held steady with 1 unfilled bid. 2015 Class III futures contracts gained a few cents each.

 

A couple of Chinese investors are buying controlling interest in Australia’s largest dairy operation. The Australian reports the investors will each purchase 35 percent of Van Diemen’s Land Company (VDL) in Tasmania. The remaining 30 percent will be purchased by a New Zealand equity firm.

Formed by Royal Charter in 1925; VDL has 29,000 dairy cattle including 18,000 milk cows and 19,000 hectares (46,950 acres) of land in Tasmania. It has been controlled by the New Plymouth District Council for years and is the largest milk producer in Australia. The deal will need to be approved by the Australian Foreign Investment Review Board.

The Australian Parliament is currently working through the details of a free trade agreement reached with China in November.