TheDairySite Newsletter - 28 January 2011

Friday 28th January 2011

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Welcome to this week's newsletter

Editorial: NZ Dairy Industry All Set For Successful Year

The New Zealand dairy industry is as strong as ever, with Rabobank senior analyst Hayley Moynihan expecting that the dairy industry will enjoy a favourable market environment in 2011 – weather permitting.

The industry has enjoyed a relatively consistent period of high returns in 2010 despite uncooperative climatic conditions.

In the UK, First Milk has announced that it will raise he price for each of its three main milk pools in February. The cheese pool price increases by 1.25 ppl, balancing pool by 1ppl, and the liquid pool price moves up by 0.25ppl.

Whilst this move has been welcomed by the industry, unions say that the gap between the market price and the farmgate price remains unsustainably wide. With costs escalating on farm, producers are hoping that price increases will continue throughout the year.

Irish Agricultural Minister, Brendan Smith, has warned producers that Ireland may incur a milk super levy at the end of the 2010/2011 milk quota year in March, for exceeding its quota set by the EU.

The Minister said that there had been a sharp acceleration in milk production up to the end of 2010, and early indications were that this acceleration in supply had continued into the New Year.

Charlotte Johnston

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This Week's Feature Articles

We have 4 new features this week:

Requirements Of Future Grass Based Systems (Dairy)
Ireland's temperate climate and resulting grass production advantage allows the Irish to exploit the competitive advantages associated with grass-based production systems compared with high input systems, says Michael O'Donovan from Teagasc.

Calf Health
The aim of successful calf rearing is to produce a healthy calf which is capable of optimum performance throughout its life from birth through to finishing, reports Bernadette Earley, Animal & Grassland Research and Innovation Centre, Teagasc.

High Concentrate Diets For Dairy Bulls
Finishing bulls on high concentrate diets is a high cost system with a large input of concentrate feeds. This article outlines the system required to ensure maximum performance, whilst remaining profitable, says Siobhán Kavanagh, Teagasc Specialist Service.

Livestock, Dairy, and Poultry Outlook - January 2011
Supplies of feeder cattle are expected to be low in the next few years, whilst global demand for US beef remains strong, albeit restricted by supply, according to the latest Livestock, Dairy, and Poultry Outlook from the USDA's Economic Research Service.