TheDairySite Newsletter - 25 March 2011

TheDairySite Weekly Newsletter

Friday 25th March 2011

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Welcome to this week's newsletter

Editorial: Global Milk Price Volatility

Irish milk prices fell 11 per cent in this week's milk auction, from 29.88 pence per litre to 26.66 pence per litre.

This drop in prices was not in line with producers expectations or needs, said Ulster Farmers' Union, Dairy Policy Chairman, William Cromie.

"Milk prices need to be strong to offset the very significant rises in the costs of feed, fuel and fertiliser. This drop in prices will be a major blow to profitability for producers who are seeing their costs of production rising every week.”

In the UK, supermarket Tesco, has announced that it will pay the highest ever price to their dedicated group of suppliers. Tesco's Sustainable Dairy Group will receive a new price of up to 29.78 pence per litre.

Tesco Board Director, Lucy Neville-Rolfe said: “With the price of feed and production costs rising it is important to support our British dairy farmers. We will continue to pay a fair price for the milk they supply and to work with the Dairy Centre of Excellence at Liverpool University to improve dairy productivity and sustainability.”

In Australia, retailers have slashed retail milk prices, leaving farmers worried that they will end up losing out.

New Zealand Federated Farmers, Lachlan McKenzie warned: "If these low prices force Australian dairy farmers out of the industry, it will be the Australian consumer who'll end up paying much higher prices in the future."

Charlotte Johnston

This Week's Feature Articles

We have 4 new features this week:

Bovine EID Update
At the end of February, the European Commission announced that it was working on a proposal to introduce electronic identification in bovine animals. TheCattleSite Editor Charlotte Johnston speaks with Sergio Pavon, the European Commission official in charge of animal identification and traceability to find out more.

Starting With The End In Mind
Mycogen Seeds has become an industry leader in breeding silage-specific corn hybrids by starting with the end in mind, writes Sarah Mikesell, senior editor TheDairySite.com.

Rabobank Global Dairy Quarterly March 2011
The Rabobank Dairy Quarterly looks at the international dairy markets. Whislt prices have generally risen in the first quarter of 2011, increasing grain prices and the recent events in Japan have started too push prices down.

Livestock, Dairy, and Poultry Outlook - March 2011
US beef exports for 2011 are forecast at 2.43 billion pounds, whilst dairy exports are expected to remain strong, outweighing the increasing feed costs, according to the latest Livestock, Dairy, and Poultry Outlook from the USDA's Economic Research Service.

Company News

Merck & Sanofi-Aventis To Maintain Separate Businesses
US & FRANCE - Merck and sanofi-aventis announced today the mutual termination of their agreement to form a new animal health joint venture by combining Merial, the animal health business of sanofi-aventis, with Intervet/Schering-Plough, Merck's animal health unit. As a result, each party will keep its current, separate animal health assets and businesses.

Global Dairy Cattle Industry News