TheDairySite Newsletter - 17 February 2012

Welcome to this week's newsletter

Editorial: A Look at Global Dairy Trade

In 2012, China will be a key driver of global dairy demand with imports of whole milk powder forecast to grow by seven per cent.

Ongoing urbanisation and continuing concerns about the quality and safety of domestic food production support consumer demand.

China's dairy imports have increased rapidly over the past decade from 220,000 tonnes in 2001, to more than one million tonnes in 2011.

As always, currency movements are impacting the competitiveness of exports. The high Australian dollar is limiting returns to Australian exporters. However, EU exports are becoming increasingly competitive.

Exports of dairy products in South America are increasing.

For the first time in its history, Argentina reported exporting more dairy products than beef in 2011. Over the last year dairy exports grew 32 per cent in volume, whilst meat exports declined by 15 per cent.

Uruguayan exports grew by 42 per cent in January compared to the same month last year, with Brazil being the main destination. Nonfat dry milk was the most exported product, followed by cheese.

Brazil says its sales of dairy products to the Middle East grew by 34 per cent in January, against the same period in 2011. Cream and butter oil make up a large proportion of the exports.

US exports of dairy cows and heifers reached an all time high in 2011. Dairy cow exports totaled 73,639 head in 2011, up from 37,356 head in 2010 and 16,209 head in 2009. The majority of those dairy cow exports, nearly 68 per cent (almost 50,000 head), went to Turkey, followed by Mexico, which imported 11,102 head.

With the outbreak of Schmallenberg virus in Europe, Russia has banned all imports of cattle. Russian veterinary authority, Rosselkhoznador, has said that it is seriously concerned by the absence of measures to limit animal movements from affected regions.

Charlotte Johnston

This Week's Feature Articles

We have 4 new features this week:

Reducing Residues in Livestock Products
"As far as I am concerned, drug residues in animal products is a black and white issue," said Dr Mike Apley, Professor at Kansas College of Veterinary Medicine, when addressing the Dairy Producer Forum at the NCBA Trade Show and Convention earlier this month. Charlotte Johnston, TheCattleSite editor reports.

Global Dairy Outlook: Attractive but Unbalanced
The global dairy market will offer strong growth prospects in the coming five years, but the uneven spread of this market expansion and an era of elevated pricing will create as many challenges as opportunities for key players along the dairy supply chain. This is one of the key conclusions coming out of the Rabobank Food & Agribusiness Research and Advisory report, “Global Dairy Outlook: Show me the money”.

Market Potential for US Distillers’ Grains Exceeds Likely Supply Growth
US production of distillers’ grains (DGs), which include a range of animal feed co-products derived from corn-based dry-mill ethanol production, has quadrupled since 2004/05, paralleling the rapid growth of US ethanol production, write Linkwood Hoffman and Erik Dohlman.

Antimicrobial Resistance – Veterinary and Public Health Concerns in Europe [Octagon]
Radical reforms of antimicrobial use in livestock are being contemplated for political reasons, according to David Burch of Octagon Services Ltd.