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TheDairySite Newsletter - 25 January 2013

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TheDairySite
Friday 25th January 2013.
Chris Harris - TheDairySite Editor in Chief

Michael Priestley
Editor


Editorial: Spanish Dairy Woes

Supermarket bargaining power, the limiting effects of quotas on national production and a feed shortage caused by drought last year have led to an unsustainable market situation in the Spanish milk supply chain headed by a disparity between farmgate milk price and production costs.

Spanish farmers have had to endure some of Europe’s lowest milk prices. Spanish processors’ average price of 0.27 cents a litre is being dwarfed by production costs around the 40 cents/litre mark.

Every week, six producers are forced out of milking due to what farmers' unions have called an unfair market structure, the Spanish Agriculture Minister, Arias Canete revealed this week on national television and radio.

Mr Canete said that 22,000 more dairies will face closure if the problem of dairies offering ‘abusive prices’ was allowed to perpetuate. A dependency on French imports would develop, which Mr Canete urged was not good for a failing Spanish economy.

The dairy ‘crisis’ has already been met with strong protest from farmers since the summer. COAG (Coordinator of Farmers Organisations) organised a series of demonstrations which climaxed in a mass collaboration of european dairy farmers protesting in Brussels before Christmas.

Farmers in the north-west of Spain, a dairying stronghold, were active in calling for market adjustments. Protests amounted to a production halt in Galicia which saw 6million litres of milk go uncollected as processors in the region were at standstill.

Protests subsequently generated a national fervour but Mr Canete has told the national press that the problem will not and cannot be rectified by passing costs on to the consumer.

Mr Canete said because of the economic recession and the importance of milk in the national diet it must be the processors’ bills that aligns with production costs.

Extensive talks have begun to create farmer cooperatives that strengthen producer bargaining power. A milk package has been passed by Royal Decree with the hope of concentrating supply.

European subsidy increases have also been confirmed which come from an additional allocation of €31 million. The agricultural ministry have said that, per farm, this will work out at €4-5 per ton available up to a funding cap of 305,000 tons a year.

The government has said that recent market interventions are as far as they are prepared to go.

Unable to fix prices, the government has rallied in European Parliament for more direct payments to support Spanish dairying.


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   United Kingdom

Increase in Underfinished Prime Cattle Continues
DairyCo Conference to Discuss Market Drivers for 2012
Farm Groups Criticise Processors for Labelling Errors
Report Shows Growth Potential for Food Co-ops
Christine Tacon New Groceries Code Adjudicator
Milk Buyers Must Abide by Dairy Code of Practice
FSA to Prosecute in Raw Drinking Milk Case
Quicker, Easier to Apply for Farm Payments Using New On-line System
First Evidence of Badger’s Spreading Tuberculosis to Cattle
New Grocer Adjudicator Hopes for Future Built on Trust

   United States

Animal Handling Improvements Need More Praise
US Hay Stocks at Lowest Level Since 1957
Livestock Operations Need to Assess Water Needs
US Dairy Exports Deteriorate
More Corn and Soybean Acres Expected in 2013
Early Focus on the Prospective Size of 2013 US Corn Crop
NFU Encourages House Commitment on Farm Bill
Dairy Profitability Outlook Bright
DFA Reach Settlement in South East Lawsuit
Schutz: Dairy Industry Turbulence Could Settle in 2013
Alfalfa in Forage System Extends Feed in Drought
American Farm Bureau Respond to Farm Bill News

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Farmers Benefit as Electronic Tag Success Strengthens Sector

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World Dairy Summit Announce Poster and Meeting Dates
Canada-US Agree on Animal Disease Zoning
Call for more Responsible Investments to Eradicate Poverty
Fertiliser Prices to Remain Bearish
Think, Eat, Save: FAO, UNEP Launch Global Campaign on Food Waste

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Antiviral Properties Found in Bovine Lactofferin

   Philippines

Agriculture Sector Grew by 2.9 per cent in 2012
Storm Quinta Caused P15-Million Damage in Aklan

   India

Mandatory GM Labeling on Packaged Food

   Germany

Strong Sector Requires Further Improvements
Milk’s Importance Stressed at Green Week

   Canada

Animal Welfare Research Network Joins Prestigious Organisations
Sector Strengthened by Saskatchewan Forage Network

   New Zealand

Lower Effluent Pond Levels Now
Withdraw of DCD Based Nitrification Inhibitors

   European Union

Welfare to Take Centre Stage at May Conference
Flexibility and Fairness Bywords for CAP Reform

   Australia

MLA: Daily Cattle Market Summary

   Russian Federation

Dairy Investment Taking Effect in Kaluga Region

   Denmark

New Report Explores Nation’s Breeds
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   China

Dairy Certificate Issue Resolved With China

   Czech Republic

State Support Announced for Drought-stricken Farmers

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