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TheDairySite Newsletter - 22 March 2013

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TheDairySite
Friday 22nd March 2013.
Michael Priestley - Editor

Michael Priestley
Editor


Drought Forces Trade Weighted Index Up

Difficult weather and high feed prices are combining to create a production shortfall that has seen the Trade Weighted Index rocket 14.8 per cent this week.

New Zealanders have borne the brunt of the weather since the New Year as a prolonged dry spell has left the entire north island in drought status, officially spreading to the south island today.

Now in the west coast districts of Grey and Buller – usually wet areas - the drought is leading to whole herds being dried off up to two months early as dry matter figures are in excess of 600 kg/ha lower than consultants recommend.

The impact on supply issues is considerable. Waikato farmers have reported up to 20 per cent yield drops and Dairy New Zealand has estimated an overall farmer income loss of NZ$13 million for February alone.

Consequently with European production also decreasing, the global dairy markets have surged this week.

Whole Milk Powder values (USD$5,116) are up 21.2 per cent on last month, beating the previous spike of March 2011.

Skimmed Milk Powder - up 7.7 per cent on last month - is now valued around the $4,050 mark.

This continues an upward trend since Christmas which has been seen across all major categories, including Cheddar which is now around USD$9,044.

Dairy market confidence is mirrored in the US following the US Department of Agriculture World Agricultural Supply and Demand Estimates report, published earlier this month.

USDA projections see a 900 million pound increase in national milk output this year - a 0.8 per cent increase on 2012.

This has eased US supply concerns at a time when Trans-Pacific Partnership talks are gathering interest attracting Thailand and Japan to consultation procedure.

This adds to a list comprising Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and the US. All countries are joining with a view to benefit from fairer trading systems that operate more efficiently.

International Dairy Federation President, Clay Hough welcomed the announcement, saying: “The addition of Japan greatly expands the scope of the TPP, and that market is a significant opportunity for U.S. dairy exports.”

However, some feel that Japan will not be able to adopt necessary concessions such as loosening market access, changing its quota system and addressing non-tariff concerns.

Next week's DairySite newsletter will be published a day earlier on Thursday 28 March because of the Easter Holiday. 


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This Weeks Articles and Analysis

Nitrate Poisoning of Livestock Causes & Prevention
Whether nitrates are not being converted into proteins by the animal or by the plant it eats, nitrate levels can overwhelm the animal's digestive system, say South Dakota University specialists who offer advice for prevention.

Endotoxins: Substantial Trigger Factor for Laminitis
Considered to be the third biggest health issue in the industry, Laminitis has been reviewed by experts at Biomin who have linked the condition to carbohydrate overload culminating in a release of endotoxins into the bloodstream.

Reducing Variability in Nutrient Consumption: Improving Health, Welfare and Profitability of Dairy Cows Fed Total Mixed Rations
The setbacks to both animal and farmer of sub acute ruminal acidosis (SARA) are detrimental and numerous although there ways to prevent rumen Ph depression and reduce the risk of SARA, according to this paper wirtten by Trevor J. DeVries.

Association Between Season and Somatic Cell Counts For Cows in Irish and UK Dairy Herds
February to August is a key period for mastitis infections, this has emerged from research done by UK scientists drawing comparisons with somatic cell counts and the time of year.

Market Reports

USDA GAIN: Republic of Korea Livestock and Products Semi-Annual 2013
USDA Milk Production - March 2013
National Dairy Products Sales Report Highlights - 20 March 2013
USDA GAIN: Australia Livestock and Products Semi-annual 2013
USDA GAIN: Russian Federation Livestock and Products Semi-annual 2013
UK January Agricultural Price Index - 21 March 2013
Irish CSO: Agricultural Price Indices - January 2013

Global Dairy Industry News

   Global

IDF Launches New Antimicrobial Framework for Responsible Dairy Chain Use
Balancing More Food and Energy with Less Pollution
Solidarity Against Antimicrobial Resistance
FMD NEWS: OIE Reports FMD Outbreaks in China and Russia
China Agrees to New Dairy Certificate
FAO: World Not Coping Well with Change in Diets
Importance of Sustainability Growing for Food Industry
Reminder on UFAW Symposium: Priorities Around the World

   European Union

Mixed Feelings over CAP Vote
Schmallenberg Understanding to Benefit from Midge Breakthrough
EU Earmarks €15m for Food and Feed Safety Testing
GM Crops: Is European Farming at Risk?
NFU Responds to Latest CAP Talks
Latest CAP Discussions Hailed as 'a Step in the Right Direction'

   United States

Legistlation to Restrict Antibiotic Use Introduced - Again
Shock Therapy: A Critical Look at Nutrients, Farm Management
Mid-year Soybean Stocks
NFU Reflects on Contributions of American Agriculture
Weekly Roberts Market Report
US Senators Commended for Working to Shine Light on Antibiotics Practices
CME: Mixed Picture for January Meat Product Exports
Strong Financial Results Confirmed for DFA
Management Tips for Drought-stressed Forages

   Australia

Flood Recoveries Given Boost
Bovine Theileriosis Innovator Rewarded
Anthrax Kills Cattle Near Moree
Dairy Australia Fortnightly Update

   Denmark

Denmark Strengthens Relations with China in Animal Science

   New Zealand

Entire North Island of New Zealand Receives Drought Confirmation
Farmers Told Price Rise Is Simply Reflection of Hard Times Elsewhere

   United Kingdom

Growing CAP Coalition Warns of Threat to English Farmers
Beef Market Opportunities for Dairy Farmers
LMC: Higher Prices Available as Numbers Tighten
2013 Budget 'Will Help Farmers'

   Canada

Harper Govt Helps Boost Exports in High-Quality Genetics
Antibiotic-Resistant Bacteria Have High Genomic Replikin Counts

   Saudi Arabia

Saudi Arabia Key Dairy Growth Market
Livestock Feed into Saudi to Reach 2.4m Tonnes by 2016, Says Ag Expert

   China

Chinese Consumers Aware of Food Safety
FMD Outbreak Reported in Qinghai
NZ Milk Import Quota Depleted Within a Month
Chinese Agrifood Prices Continue to Fall

   Russian Federation

FMD Affects Cattle, Sheep and Pigs

   South Africa

South Africa's Ag Minister to Open Congress

   Thailand

Erich Erber Awarded Asian Personality Award during the VIV Asia 2013

   Colombia

Trading Agreement Will Bring Industry Shake-up

   Venezuela

Governments Sign Breeding Stock Agreement

   Peru

Authorities Agree on FMD Control Strategy

   Bolivia

Farmers to Receive Cattle, Equipment and Training Grants

   Spain

Policy Measures Attributable For Milk Delivery and Price Rise

   Ireland

Breeding for Improved Product Quality

   Argentina

State Efforts to Tighten Food Regulations Take Shape

   Japan

Japan Sets Eyes on Trans-Pacific Partnership Negotiations

Events/Promotions

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