TheDairySite Newsletter - 22 July 2011

TheDairySite Weekly Newsletter

Friday 22nd July 2011

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Welcome to this week's newsletter

Editorial: Milk Price Wars Rage On

After months of industry-wide enquiries, the Australian Competition and Consumers Commission has said that supermarket chain, Coles, has not broken any competition laws by selling home-brand milk for A$1 per litre.

An enquiry was launched after farmers complained about the price drop, and accused Coles of starting a milk price war, which could force competitors out of the market.

“The major impact of the reduction in milk prices since January seems to have been a reduction in the supermarkets’ profit margins on house brand milk. These price reductions have benefited consumers, who purchase house brand milk ,” ACCC Chairman Graeme Samuel said.

In the UK, over the last year, commodity prices have risen 31 per cent, however, prices farmers received for their milk increased by only five per cent.

With the expectation that farm input costs will continue to rise in the short to medium term, the fact that farmgate milk prices have not responded to the same degree as commodity markets has caused great concern in the industry.

For a sustainable dairy farming industry to exist in any country, conditions within the supply chain must not disadvantage farmers in the long term. This means it is vital that the industry gains an understanding of how prices adjust along the supply chain, says DairyCo analyst Patty Clayton.

Charlotte Johnston

This Week's Feature Articles

We have 4 new features this week:

Dairy Industry Facing Up To Volatile Markets
The dairy industry around the world is learning to face up to volatility in the market, writes TheDairySite Editor in Chief, Chris Harris.

Systems Of Production For Male Calves From The Dairy Herd
Researchers at the Animal and Grassland Research and Innovation Centre, Teagasc, Ireland, look at the different production methods for male calves from the dairy herd.

Orbeseal Offers Significant Economic Benefits
New data shows that the use of OrbeSeal dry cow teat sealant as part of a dry cow therpay (DCT) programme, reduces average labour costs per cow for clinical mastitis in the first six weeks of lactation, from €3.37 to €2.16.

Livestock, Dairy, and Poultry Outlook - July 2011
Drought continues to drive US cattle sales, while pig meat exports are expected to continue to be strong and broiler meat production continues to rise, according to the latest Livestock, Dairy, and Poultry Outlook from the USDA's Economic Research Service.

Genus - Value through science and genomics

Company News

Merck Breaks Ground For Vaccine Plant Expansion
NETHERLANDS - Merck Animal Health, formerly known as Intervet/Schering-Plough Animal Health, has announced that it has embarked on the expansion of a vaccine manufacturing unit at its Biosciences Center Boxmeer campus.

Global Dairy Cattle Industry News