TheDairySite Newsletter - 26 August 2011

Welcome to this week's newsletter

Editorial: Fonterra Downsizes Organics

Slow growth in the market has forced New Zealand's Fonterra to downsize its organic operation.

“We understand the big commitment many of our farmers have made to the organics programme and that this transition will not be an easy one to make. The decision to reduce our organics operation was not taken lightly but we need to get the business back into a break-even situation," said Fonterra’s Group Director Supplier and External Relations, Kelvin Wickham.

Mr Wickham says the organics market was hit hard by the global financial crisis and market indications are it will not recover to previous levels.

Fonterra is meeting with its organic famers this week to take them through a four point plan to bring the loss making business into a break-even situation. This includes a reduction in transport and manufacturing costs, focusing on sales of cheese and new markets.

The group has said that it will honour all existing contracts, and support producers throughout the transition out of the organics programme.

Industry organisation, Federated Farmers has said that the decision is disappointing and leaves farmers in the lurch.

“Only last year, Fonterra said publicly that the only way for organics was up even in the current economic climate. It even rescued suppliers from the defunct Taranaki based New Zealand Organic Dairy Farmers Co-operative, so it’s all a bolt from the blue," said Gray Beagley, Federated Farmers Dairy organic spokesperson.

"Fonterra’s organic consolidation is a sobering international assessment of global organic demand. Consumers are seemingly unwilling to pay an organic premium."

Charlotte Johnston

TheDairySite Book Focus

Bioactive Components in Milk and Dairy Products
Aimed at food scientists, food technologists, dairy manufacturers, nutritionists, nutraceutical and functional foods specialists, allergy specialists, biotechnologists, medical and health professionals, and upper level students and faculty in dairy and food sciences and nutrition, Bioactive Components in Milk and Dairy Products is an important resource for those who are seeking nutritional, health, and therapeutic values or product technology information on milk and dairy products from the dairy cow and species beyond.
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Robotic Milking
Robotic Milking is a book about managing robotic dairy farms. It is full of practical information, management information and ideas. It is written by Jan Hulsen of the Vetvice Group and Jack Rodenburg, so you are assured of practical, complete and accessible information.
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This Week's Feature Articles

We have 4 new features this week:

The State Of The UK Dairy Industry
The Environment, Food and Rural Affairs (EFRA) Committee has examined the dairy industry in light of the European Commission’s proposed package of measures for the dairy sector. This section of the report looks at the UK dairy industry in more detail, and EFRA's recommendations for the government.

Effect Of DEMP On Fermentation, Digestion And Rumen-Stimulating Fermentors
G Harrison, M Meyer and K Dawson from Alltech looked at the effect of dietary escape microbial protein (DEMP) on the rumen, when replacing soybean meal (SBM).

Livestock, Dairy And Poultry Outlook – August 2011
High feed prices will curb production next year, according to the USDA Economic Research Service in its Livestock, Dairy and Poultry Outlook for August 2011.

Biomin’s Mycotoxin Survey – 2nd Quarter Report 2011
Mycotoxin analysis results for the second quarter of 2011 from Biomin, including more than 2,800 analyses of more than 800 animal feed ingredients. At least one mycotoxin was found in 90 per cent of the samples.

Company News

Weather Could Trigger Lungworm Outbreak
UK - The recent wet weather following the earlier dry conditions experienced by much of the UK may have created a potential lungworm time bomb, warns Merial Animal Health, and farmers need to be vigilant in order to catch the disease early.

CID LINES Shows Dairy Products At Finnish Show
FINLAND - CID LINES demonstrated a range of its hygiene for dairy cattle products at the Finnish "Farmari" show.

DeLuca Appointed President Of Merck Animal Health
US - Merck has appointed Richard R. DeLuca Jr. as President, Merck Animal Health.

The 32,500 Litre Herd: Is More Always Better?
IRELAND - How can we feed and manage a 32,500 litre dairy herd? This is tomorrow’s challenge for many dairy farmers around the world. Alltech’s Ruminant Solutions Seminar, ‘Pushing the boundaries: Performance vs. Profit’, will take place on the 13th and 14th of October 2011, in Alltech’s European Headquarters, Ireland, where this key issue will be discussed by experts across a number of fields.

Alltech Appoints New Asia-Pacific Director
ASIA PACIFIC - Alltech has appointed a new director for its fastest growing region – Asia Pacific.

Global Dairy Cattle Industry News