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TheDairySite Newsletter - 31 May 2013

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TheDairySite
Friday 31st May 2013.
Michael Priestley - Editor

Michael Priestley
Editor


Good News For Industry as Processors Increase Prices

Milk buyers have shown confidence in a bullish commodity outlook for the coming months, ahead of the World Milk Day on Saturday.

Started by the Food and Agriculture Organisation of the United Nations in 2001, this annual celebration focuses on dairy production across the world.

Ahead of the event, several major processors have announced liquid price increases, including UK farmer co-operative, First Milk.

By announcing a two stage increase of 1.1 pence per litre over July and August, company chairman Bill Mustoe has said that farmers are being passed on returns as fast as possible.

He added that higher value products such as Lake District Cheese and the recently launched Quark range are ways in which First Milk is looking to respond to market demands.

Further price increases have been announced in New Zealand. Dairy co-operatives Fonterra and Westland Milk Products have shown commitment to strong prices in the light of low supplies with opening forecast farmgate prices of NZ$7.00 and NZ$6.60-NZ$7 per kilogram of milk solids respectively.

However, Federated Farmers of New Zealand has warned dairymen that price does not equal profit, and although Westland’s prices offer a ‘buffer’ against volatility, frugality is required for business survival in the light of forage costs.

Average sized herds are costing NZ$1000 every day in forage spend, Dairy Spokesman for Federated Farmers of New Zealand announced this week.

But, such costs may be worthwhile enduring if openings in the Asian market are to be exploited.

This is according to a Fonterra study that found that 72 per cent of 9,000 Asians surveyed see dairy food as part of a balanced diet. However, the survey also found that less than half of the sample actually consumed dairy products every day.

Nevertheless, Fonterra has stated that increasingly affluent populations across Asia are aware of offering families ‘appropriate nutrition.

Current Fonterra strategy is to drive annual average consumption up in Asia, currently at 30 litres. New Zealand consumption is around 245 litres.

Similarly, the importance of a strong dairy sector has been highlighted by the Swedish Rural Affairs Minister, Eskil Erlandsson.

By introducing premiums for large herds of 1000+, the competitiveness of the Swedish sector can be strengthened, he stated.

He outlined the importance of cattle farming because of its contribution to jobs, export earnings and the provision of ‘important environmental assets’.


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This Week's Articles and Analysis

Field Drying Forage For Hay and Haylage
Leaving cut alfalfa in a wide swath maximises sun exposure and aids drying, say extension educators at Wisconsin University who recommend wide swaths covering 70 per cent of cut area.

Farm Land Values: Alberta's Changing Crops
Constantly shifting farmland prices have seen Alberta land values increase by 2.9 times, whereas Saskatchewan has only seen marginal increases. Generally the appeal of farmland as an investment and a future reserve has increased demand.

An Integrated Investigation of Uterine Disease
Teagasc researchers and University partners are developing biomarkers for the early detection of uterine disease.

Precision Feeding Dairy Heifers: Strategies and Recommendations
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Food for 9 Billion: A Perspective on Global Agriculture in 2050
Dr Dominique van der Mensbrugghe, FAO, gave the second lecture in the Teagasc/RDS lecture series. Here he summarises the main points of his lecture: ‘Will we run out of natural resources needed for food production?’.

Company News

BIOMIN Releases Latest Results of Mycotoxin Survey Program 2012
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Market Reports

USDA GAIN: Japan Dairy and Products Semi-annual 2013
USDA GAIN: EU-27 Dairy and Products Semi-Annual 2013
USDA GAIN: Mexico Dairy and Products Semi-annual - May 2013
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UK Milk Prices and Composition of Milk April 2013 - May 2013
Irish CSO: Milk Statistics - May 2013
USDA National Dairy Products Sales Report - 30 May 2013

Global Dairy Industry News

   Australia

Cutting Red Tape for Australia's Food Industry
National Hay Report Shows Growing Concern
Victoria Farmer Demand Consessional Loans as Winter Follows Drought

   Canada

Harper Government Grows Trade Partnerships with Russia, Kazakhstan

   Global

Report Looks at Feed Enzyme Market
Insects as Sustainable Food and Feed Source
Farm Animal Diversity Declines as Accelerating Losses Threaten Humanity
OIE Adopts New Chapters on Animal Health, Welfare
FMD NEWS: OIE Reports FMD Outbreaks in Zimbabwe, Tibet
OIE Reviews South American Cattle Health Categorisations

   Ireland

Both Houses Pass Animal Health, Welfare Bill
Minister Acknowledges Parliament’s Positive, Helpful Engagement on CAP Reform

   United States

Alltech Crowns Australian, Brazilian Students Young Scientist Winners
Grass Tetany Possible This Spring
Ranchers Instructed to Keep an Eye on Expenses and Price of Corn
Armyworms Eat Fescue Pastures and Hayfields
Wisconsin Farm Breaks Voluntary Milking System Record
Daily Dairy Cash Trading: Movement in Butter and Cheese, Tuesday
Focus Shifts to Soybean Planting Progress
Absinth Wormwood or Wormwood Sage
CME: Corn, Soybean Plantings Behind Schedule
Daily Dairy Cash Trading: Grade AA Butter Continues Down Trend
US Welcomes Negligible BSE Risk Designation by the OIE
Cheese Exports Topping $1 Billion Is Down To Communication
Daily Dairy Cash Trading: Value Remain Unchanged, Thursday

   Taiwan

FMD Outbreak Affects Pigs in Taiwan
FMD Outbreak in Taiwan Affects Pigs

   Nepal

Livestock Growth to be Slow but Steady

   Indonesia

Australian Beef Imports Announced By Indonesia

   Denmark

Potential For Dairy Calves to Bolster Organic Beef

   Zimbabwe

Zimbabwe Veterinary Services Confirm Outbreak In Masvingo
Cattle Affected by FMD Outbreak in Zimbabwe

   Peru

OIE Announces Peru As FMD Free

   United Kingdom

Study Show Messy Parts of Farm Provide Vital Habitat
Final Offer On Out-of Production Bulls
Arla Finalises Sale of Crediton Dairy
NFU Takes #buybritish Message to Millions
Industry Continues Demands For 'Fair' Milk Chain
High Level Lobby Event Brings CAP Concerns to Fore
Price Increase For First Milk Manufacturing Pool

   Ecuador

First Round Of FMD Vaccinations Announced For Ecuador
Almost Two Years Without FMD

   Argentina

Ministry Trumpets Genetic Export Success

   New Zealand

Five Dollar Price Rise is Good News For Fonterra Suppliers
Westland Looks to Match Fonterra Bullishness

   Switzerland

Call for Sustainable Solutions to Feed the World

   European Union

No Cap Deal Could Delay Reform for Years
EU Proposals For Supply Mangement Are Unacceptable

   China

Tracking System Keeps Tabs on Livestock, Poultry
More Cattle in Tibet Affected by FMD Outbreak

   Netherlands

Calculation of Antibiotic Use on Farms

   Costa Rica

Sustainable Milk Package Worth 100 Million Colones

   Venezuela

Cycle For Disease Vaccinations Over Half Way Stage

Events/Promotions

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