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TheDairySite Newsletter - 22 July 2011

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Friday 22nd July 2011
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Welcome to this week's newsletter

Editorial: Milk Price Wars Rage On

After months of industry-wide enquiries, the Australian Competition and Consumers Commission has said that supermarket chain, Coles, has not broken any competition laws by selling home-brand milk for A$1 per litre.

An enquiry was launched after farmers complained about the price drop, and accused Coles of starting a milk price war, which could force competitors out of the market.

“The major impact of the reduction in milk prices since January seems to have been a reduction in the supermarkets’ profit margins on house brand milk. These price reductions have benefited consumers, who purchase house brand milk ,” ACCC Chairman Graeme Samuel said.

In the UK, over the last year, commodity prices have risen 31 per cent, however, prices farmers received for their milk increased by only five per cent.

With the expectation that farm input costs will continue to rise in the short to medium term, the fact that farmgate milk prices have not responded to the same degree as commodity markets has caused great concern in the industry.

For a sustainable dairy farming industry to exist in any country, conditions within the supply chain must not disadvantage farmers in the long term. This means it is vital that the industry gains an understanding of how prices adjust along the supply chain, says DairyCo analyst Patty Clayton.

Charlotte Johnston

* This Week's Feature Articles

We have 4 new features this week:

Dairy Industry Facing Up To Volatile Markets
The dairy industry around the world is learning to face up to volatility in the market, writes TheDairySite Editor in Chief, Chris Harris.
Systems Of Production For Male Calves From The Dairy Herd
Researchers at the Animal and Grassland Research and Innovation Centre, Teagasc, Ireland, look at the different production methods for male calves from the dairy herd.
Orbeseal Offers Significant Economic Benefits
New data shows that the use of OrbeSeal dry cow teat sealant as part of a dry cow therpay (DCT) programme, reduces average labour costs per cow for clinical mastitis in the first six weeks of lactation, from €3.37 to €2.16.
Livestock, Dairy, and Poultry Outlook - July 2011
Drought continues to drive US cattle sales, while pig meat exports are expected to continue to be strong and broiler meat production continues to rise, according to the latest Livestock, Dairy, and Poultry Outlook from the USDA's Economic Research Service.
Genus - Value through science and genomics
* Company News

Merck Breaks Ground For Vaccine Plant Expansion
NETHERLANDS - Merck Animal Health, formerly known as Intervet/Schering-Plough Animal Health, has announced that it has embarked on the expansion of a vaccine manufacturing unit at its Biosciences Center Boxmeer campus.
* Global Dairy Cattle Industry News

   China

 » FMD NEWS: China Reports Outbreak of FMD in Guizhou

   New Zealand

 » Submissions Sought For Raw Milk Rules
 » Fonterra Expands Chinese Dairy Operations

   General

 » 30 Per Cent Surge In Global Liquid Dairy Products
 » New Fund For Livestock Biodiversity Management

   United States

 » NFU Passes Resolution In Response To Dairy Proposal
 » Roberts Report: Weather Still Affects Markets
 » CME: Ethanol Producers Corn Usage To Rise
 » NFU Subcommittee To Examine Dairy Proposal
 » Future Dairy Policy Package
 » Foodborne Outbreak Association With Raw Milk
 » Kentucky Grazing Network Expands
 » How Much Risk To The Corn Crop?
 » CME: Farmers Struggle As Hot Weather Continues
 » Dairy Farm Contributions To GHG Emissions
 » June Milk Production Up 1.4 Per Cent
 » Purdue Report: Causes Of High Commodity Prices
 » Producers Enroll In National Dairy FARM Programme
 » CME: 2011 Feeder Cattle Down Despite Drought
 » Drought Can Force Livestock To Eat Poisonous Plants
 » CME: Beef Producers In No Position To Expand

   United Kingdom

 » Licence Badger Cull To Go Ahead In England
 » Campaign To End Live Exports From The UK
 » Commodity Prices Not Passed Down To Farmgate
 » EU Must Step Up Beef Promotion

Animax Veterinary Health
   Australia

 » Environmental Masitis Increasing
 » Coles Cheap Milk Not Anti-Competitive, Says ACCC

   Italy

 » Lactalis Secures Majority Stake in Parmalat

   Denmark

 » Grazing Cows Live Longer

   Canada

 » Research To Contribute To GHG Commitments

Cow Signals Training Books
   Korea, South

 » Govt Battles To Control Prices & Supplies After FMD
 » Govt To Provide Counselling For Farmers

   European Union

 » NFU Backs CAP Red-Tape Reduction Plans
 » Feed Organisations Warn Of Supply Disruption

   Ireland

 » Open Day On Expanding Dairy Farm

   Ghana

 » Ghana's Farming Needs Investment, Says Official

Alltech provides Natural Cattle Feed Supplements

That's all for this week!

Ed.
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