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TheDairySite Newsletter - 13 July 2012

Welcome to this week's newsletter

Editorial: Busy Week for Global Dairy Industry

It has been a ground shaking week for the dairy industry, with demonstrations over milk prices in Europe and the Farm Bill still causing a divide in the US dairy industry.

Farmers Take to the Streets over Milk Prices

In Europe, hundreds of dairy farmers gathered in Brussels to demonstrate in front of the European Parliament over plummeting milk prices.

The European Milk Board, which organised the protest, blames over-production. The group says that the excess supply on the European milk markets is pushing milk prices to dangerously low levels, threatening the farmers' livelihoods.

In the UK, recent drops in farmgate milk prices forced nearly 3000 dairy producers to congregate in London for an emergency dairy summit.

The most recent price reductions will come into force on 1 August 2012. However, the dairy industry has united in calls for these price decreases to be reversed.

If nothing is agreed between industry, processors and retailers over the next two weeks, many dairy producers are ready to participate in direct action, including pouring milk away and protesting in the streets.

Unlike the oversupply of milk in mainland Europe, the price cuts are due to significant falls in cream prices over the last 12 months, affecting processor profit margins.

Dairy Security Act Divides Industry

In the US, the House Agriculture Committee has approved the Farm Bill, taking it one step closer to being implemented. The Farm Bill has caused somewhat of a controversy in the US, dividing the dairy industry.

The Farm Bill would replace dairy subsidies with insurance programmes. The Dairy Policy Reforms that were included in the Farm Bill in April would allow farmers to voluntarily opt into an insurance plan that would pay out when milk prices drop below a certain price. However, they would also be required to cut back production through a supply control programme, the Dairy Market Stabilisation Programme.

Supporters say that the insurance programme would protect dairy producers throughout difficult times and act as a safety net.

However, opponents have criticised the Act, saying that it is adamantly opposed to government supply management. They believe that such control measures would stifle the industry and seriously affect exports. There are also concerns that many small farmers may be pushed out of business.

This week a proposed amendment to the Dairy Act was rejected, leaving the opposition disappointed. The amendment would have replaced the Dairy Market Stabilisation Programme with a dairy farmer safety net without the government-mandated supply management provision.

The Farm Bill will now go to the Chambers before being passed onto the House and Senate.

Elsewhere in the US, hope is fading as drought continues to take its toll. The most recent USDA report shows the 2012-13 corn production estimate has been affected, dropping to 12.97 billion bushels, a 1.82 billion bushel decrease.

Charlotte Johnston

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* This Week's Feature Articles

We have 4 new features this week:

US Dairy Outlook: May Milk Production Increased
May 2012 23 major dairy states milk production increased 2.1 per cent. Production per cow was up by 22 pounds from one year ago, writes Kristen Schulte from the Iowa State University.
New Study Maps Hotspots of Human-animal Infectious Diseases and Emerging Disease Outbreaks
A new global study mapping human-animal diseases like tuberculosis (TB) and Rift Valley fever finds that an "unlucky" 13 zoonoses are responsible for 2.4 billion cases of human illness and 2.2 million deaths per year. The vast majority occur in low- and middle-income countries.
Strategies for Renewed Forage Production
Six dollar corn. Fourteen dollar beans. Bring out the plow and disk. Tear up the hay ground, pasture, and CRP. Let's make some real money, writes Bruce Anderson, Extension Forage Specialist, University of Nebraska-Lincoln.
Large Herd Seminar Continues to Break Records
"Many dairy farmers forego very significant profit opportunities in the false pursuit of reducing input costs," Steve Eicker, an expert in farm financial performance and the use of data to monitor current dairy herd performance, told delegates attending the 2012 Large Herd Seminar in Gloucestershire in June 2012.
Cow Signals Training Books
* Market Reports

 » USDA National Dairy Products Sales Report - 5 July 2012
 » USDA World Agricultural Supply and Demand Estimates (WASDE) July 2012
 » CSO - Crops and Livestock Survey June 2011

* Company News

IBR Vaccine Programme Offers Simplicity
UK - Protection from IBR for up to 12 months is available to beef and dairy farmers using a new vaccination programme.
* Global Dairy Cattle Industry News

   United Kingdom

 » NFU Appoints New Director General
 » Investment, Innovation to Unlock Production
 » Legislation on Milk Prices Urged if No Progress Made
 » Is the Dairy Industry Too Focused on Milk Prices?
 » Dairy Farmers Head to London for Crisis Talks
 » UK Takes EU Tactics: NFU Supports Demonstrations
 » Badger Cull to Go Ahead, Defra Wins Legal Challenge
 » £5 million Funding for Dairy Industry Through RDPE
 » Scotland Unveils Five-Point Dairy Action Plan

   Australia

 » Improving Working Dog Genetics
 » Retailers Pressure Suppliers to Cut Dairy Prices
 » Greater Clarity Needed over Milk Pricing Strategies
 » A$400m Quarantine Facility for Victoria
 » Watch out for Variable Hay Quality
 » Industry and Govt Support Live Export Trade
Biomin - the natural way
   United States

 » New Virus Free FMD Vaccine Developed
 » CME: CME Host WASDE Online Discussion
 » BSE Spreads Before Found in Central Nervous System
 » Drought-Stressed Corn Concerns for Illinois
 » Ag Committee Urged to Remove Milk Supply Limits
 » Meat Industry Faces Financial Disaster?
 » CME: Trade Continues to Debate Drought Situation
 » NCBA Redbooks Available for Purchase
 » Consent Decree Entered Over Drug Residues Claim
 » Silage Corn to Save Value for Drought-Damaged Crop
 » Agriculture Committee Rejects Dairy Amendment Act
 » Southeast US, Unfriendly Place for Dairy Cows
 » Cyanobacteria Harmful to Livestock
 » Weekly Roberts Market Report
 » Poor Growing Conditions Affect Grain Supply
 » House Agriculture Committee Advances Farm Bill
 » US Drought Leads to Declaration of Natural Disaster

   European Union

 » NFU Backs MEPs on Animal Welfare
 » EFSA: Food Safe from Animal Cloning
 » Studying the Midge Genome to Prevent Viruses
 » Copa-Cogeca Outlines Dairy Priorities
 » Transitional Measures in Place Ahead of CAP Reform
 » Dairy Farmers Demonstrate in Brussels
 » EU Milk Production to Increase

   Ecuador

 » Three Million Cattle Vaccinated for FMD in Ecuador
Genus - Value through science and genomics
   Ireland

 » Ongoing Weather Problems Hit Farm Incomes
 » IDB Acquires The Cheese Warehouse
 » Ireland Tries to Restrict Cheese Advertisements

   Global

 » Squeeze Coming As Milk Prices Continue to Decline
 » Global Milk Crisis: a Downward Trend in Milk Prices

   Hungary

 » Hungary Heat Wave Could Cost Farmers Billions

   New Zealand

 » Steady Lift in Dairy Waste Compliance
 » New Zealand Navigating Global Dairy Crisis

   India

 » Steps to Minimise Suffering in Culling Praised
 » India Extends Ban on Milk Product Imports from China

   Gambia

 » Anti-Cattle Rustlers Embark on Campaign

   Jamaica

 » Tax on Imported Food will Benefit Farmers
Pfizer Animal Health
That's all for this week!

Ed.
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