News Coronavirus
French dairy giant issues profit warning
Danone, the second largest dairy cooperative in France, is tempering sales and profit expectations for 2020. The reason for this is the outbreaks of the corona virus in China.
The French dairy expects sales to China to fall by approximately €100 million in the first quarter. The expected turnover growth for this year has therefore been reduced: from 4% to 5% to 2% to 4%. The profit margin has also been revised downwards.
Dairygold, a large dairy processor in Ireland, also announced this week that it was suffering from the corona virus. The dairy is taking into account that dairy sales will be more difficult in the coming months. The Scandinavian Arla also shared this with an explanation this week on the milk price which did increase.
Lower dairy quotes
Dutch dairy processors and trading houses have not yet issued a formal warning, but do indicate that the corona virus is negatively affecting dairy sales. This is also clearly reflected in the course of the DCA dairy quotes the past weeks.
Besides the fact that Chinese dairy consumption may turn out to be somewhat lower, sales are encountering major logistical obstacles. Exporters of other (agricultural) commodities, such as pork, for example, also have problems a succes story.
Wouter Job
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