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TheDairySite Newsletter - 15 July 2016

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TheDairySite
Friday 15th July 2016.
Alice Mitchell - Editor

Alice Mitchell
Editor


MSD Animal Health

US Investing in Milk Powder Capacity Despite Low Prices

This week, Sarah Mikesell reported for TheDairySite on how milk powder production in the US is set to significantly increase capacity over the next two years.

According to a new research report from CoBank, despite a 30 per cent reduction in milk prices since 2015, global milk production has continued to rise, with much of the surplus milk ending up as powder.

This excess volume of powder, along with large inventories in the US and New Zealand, has kept world milk powder prices low, with little hope of a meaningful recovery until at least 2017.

However, in the face of this supply buildup and flagging prices, new projects are in the works that could add an estimated 440 million pounds per year of additional powder manufacturing capacity in the US over the next two years – click here to read on.

A report from Rabobank this week indicated that global milk deliveries are starting to fall, leading to an upswing in prices, but dairy markets are showing only modest demand growth.

Despite higher buying from China in the first half of the year, poor economic performance, low oil prices and geopolitics continue to weaken demand in many regions, according to the Rabobank Global Dairy Quarterly Q2 2016.

“While we still forecast prices to rise in 2017, these risk being dampened by continuing weak demand due to low oil prices, trade bans and lack of affordability in emerging markets,” said Kevin Bellamy, the report's author – read more.



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This Week's Articles and Analysis

Controlling Flies on Pastured Cattle
Horn flies, face flies, and stable flies are not just irritants to livestock, but are also economically important to producers due to negative impacts on milk production and calf weaning weights, according to the South Dakota State University iGrow service.

Company News

BIOMIN Streamlines Digestarom Product Portfolio
GLOBAL - In an effort to focus on major livestock species, BIOMIN has streamlined the number of products within the Digestarom® phytogenic feed additive portfolio.
Market Reports

USDA Dairy Products - May 2016
USDA National Dairy Products Sales Report - 8 July 2016

Global Dairy Industry News

   United Kingdom

Poor Grass Quality Contributes to UK Milk Deliveries Fall
Andrea Leadsom Appointed UK's New Ag Secretary
Arla Launches 'Farmers Milk' at Asda
Sports Nutrition Innovators Sought for Dairy Award

   United States

GMO Labelling Bill Passed in US
US Milk Powder Capacity Increasing Despite Global Supply Glut
Watch Out for Lead Poisoning in Cattle

   Global

Public Trust in Agriculture and Freedom to Operate
Local Food Standards a Sticking Point in EU-US Free Trade Talks
Dairy Prices Moving up, but Demand Still Weak, Rabobank Says
Milk Production Responding to Low Prices
Global Food Prices Increased Rapidly in June

   Argentina

Scientists Sequence Genome in Effort to Fight Leptospirosis

   New Zealand

NZ Farmer Fined for Cutting Teats Off Cows
Diligence Needed in Sharemilking Contracts
NZ Dairy Farmers Urged to Improve Bobby Calf Welfare at Calving Time

   Australia

Dairy Australia Developing Virtual Herding Technology

   Canada

Taiwan Lifts Ban on Canadian Beef

Events/Promotions

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