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TheDairySite Newsletter - 2 March 2012

TheDairySite Weekly Newsletter
Friday 2nd March 2012
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Welcome to this week's newsletter

Editorial: Does NZ Dairy Pose a Threat to the US Markets?

This week, leaders from nine countries are meeting to discuss the Trans-Pacific Partnership (TPP) free trade agreement (FTA) in Melbourne, Australia. And for the first time in two years access to dairy markets will be on the table.

For the US this could be an issue. Last year President Barack Obama backed full and comprehensive opening of markets in TPP talks, however in the dairy industry there is some resistance to this.

Only last week the US Dairy Export Council sent a letter to US Trade Representative Ron Kirk and US Secretary of Agriculture Tom Vilsack. Despite supporting the TPP, the letter cited concerns about pervasive anti-competitive practices by the New Zealand dairy industry.

The US dairy industry claims that New Zealand has a "smothering domestic monopoly and aggressive pricing in foreign markets".

New Zealand does have a dominant role on global dairy markets, accounting for 35 per cent of global dairy exports. Over the last year, New Zealand dairy exports of milk powder, butter and cheese increased 25 per cent. The US accounts for 12 per cent of global trade in major dairy commodities.

The US Dairy Export Council believes that because of New Zealand's dominant role, it policy allowing anti-competitive practices imposes negative impacts on global competitors. "Such a dominant role affords it unfair advantages over its competitors and distorts international trade in dairy products."

Fonterra, a New Zealand owned co-operative maintains around a 90 per cent market share of NZ produced milk.

The US industry has also said that is will oppose major non-tariff measures that negatively impact the US's ability to fairly compete both at home and abroad.

Simon Tucker, from DairyNZ said that shutting NZ dairy exports out of the US will not help US dairy prospects.

The US is a major player on global dairy markets, and so restricting access to its domestic markets will have effect their access to foreign markets in the long term.

With NZ focusing their dairy marketing efforts on South East Asian and Chinese markets, it seems unlikely that they will dramatically increase sales of dairy products to the US.

Earlier this year, the New Zealand Ministry of Agriculture (MAF) announced proposed changes to the Dairy Industry Restructuring Act (DIRA). Looking at raw milk regulations, MAF has proposed that Fonterra increase the volume of raw milk it makes available to independent processors.

Still under consultation, the proposals hope to increase competition at the farmgate and ensure that sufficient regulated milk is available for dairy food and beverage companies who process raw milk but do not have their own supply.

Fonterra Chairman, Sir Henry van der Heyden, said that the proposal would impose nearly NZ$200 million of additional costs over the next three years alone and work against the co-operative's efforts to reduce the price of milk in New Zealand.

With European dairy quotas being lifted in 2015, an additional nine billion litres of milk is expected to come onto the global market. Kevin Bellamy, senior global dairy analyst for Rabobank, has said that New Zealand has little to fear from this. "Continued strong medium-term growth in world demand for dairy is set to absorb the additional supply."

Charlotte Johnston

* This Week's Feature Articles

We have 4 new features this week:

Buying Hay or Silage after a Flood, Fire or Drought
Home grown or purchased hay or silage are extremely valuable feeds after a flood or fire. If well made, they should be safe to feed and are excellent “comfort food” for short term feeding of cattle, horses, sheep and other grazing animals, writes Neil Griffiths Technical Specialist Pastures Paterson with New South Wales, Australian government.
Global Dairy Outlook: Farm Returns Improved
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”.
Frost Seed Clover in 2012
An important forage option available to cattlemen is the addition of clover to cool season grass pastures. The addition of clover to grass pastures will improve the quality of forage that cattle graze, dilute infected tall fescue and also supply nitrogen via nitrogen fixation, writes Dr Mark A. McCann, Extension Animal Scientist, VA Tech.
Parasitic Gastro-Enteritis in Cattle
Reports of Haemonchus contortus in calves in the UK, as well as a case of the parasite in a water buffalo were reported as being detected by passive surveillance by the Veterinary Laboratory Agency in 2011. All were differentiated by molecular techniques from the similar H. placei, which has not been reported in the UK.
Cow Signals Training Books
* Market Reports

 » Canadian Dairy Statistics Q4 Results
 » UK Milk Prices and Composition of Milk
 » USDA Dairy Product Prices Week 9
 » US Cattle on Feed Up Two Per Cent
 » USDA GAIN: Meat Demand In Urban Chinese Households - February 2012
 » CSO Livestock Survey (January 2012)
 » Ireland Milk Statistics January 2012
 » USDA Agricultural Prices - February 2012

* Company News

Texas & Cornell Uni's Join Forces with Pfizer
US - Cornell University College of Veterinary Medicine and Texas A&M College of Veterinary Medicine & Biomedical Sciences have announced a groundbreaking partnership with Pfizer Animal Health. This unique partnership between academia and industry will deliver the Universities’ expertise in medicine and teaching, supported by Pfizer Animal Health’s information delivery and customer service know-how.
* Global Dairy Cattle Industry News

   Russian Federation

 » FMD NEWS: FMD Outbreak Reported in Primorye


 » Mexico Sends Third Shipment of Cattle to Turkey
 » US-Korea FTA - Access for Dairy Products
 » Bill Gates Donates $51 Million to Combat Disease
 » Canada and US Strengthen Ag Trade Relationship
 » New Drug Standards to Combat Nagana
 » Sustainable Intensification to Meet Growing Demand
 » Scientific Proof of Resistance Pathogens Pathway

Pfizer Animal Health
   United Kingdom

 » Is Your Milk Buyer Moving in the Right Direction?
 » BVD Eradication Scheme Support
 » 74 Cases of Schmallenberg in UK
 » Badger Trust Confirms Legal Challenge
 » UK on High Alert with Schmallenberg in England
 » Ruminants Crucial to Food Security
 » NI Brucellosis Outbreaks Lowest Since 1990's
 » Rural Economy Grant is Good News, Say NFU
 » New Large Animal Territory Manager for Ceva


 » Mapping Out a Food Secure Future
 » Scholarship Draws Talent into Manufacturing
 » Gippsland Herds on High Alert for Facial Eczema
 » NT Cattle Ranch Sells for A$30 Million
 » Better Manage Forage Oats this Winter
 » Live Export Reform Progresses
 » Weekly Cattle Summary
 » AU Beef Exports to Japan Subdued in February

Genus - Value through science and genomics

 » Minister Warns of Milk Quota Superlevy
 » IFA Led Dairy Investment Group Meets
 » December Livestock Survey Shows Strong Mixed Trends
 » €5 Million Payout Under Efficiency Programme
 » IFA Work on Slaughter of Injured Animals

   United States

 » Federal Court Rules Against EPA's NNC
 » Majority of Dairy Related Disease Related to Raw Milk
 » CME: Milk Ends the Day Lower – Grains Higher
 » Laws Seeking to Ban Farm Investigations Opposed
 » CME: Corn Prices for 2012/13 to be Almost 20% Lower
 » Fewer Farms, Less Land but Greater Production
 » CME: Weekly Dairy Slaughter Picks Up
 » US Concerned over NZ Anti-Competitive Practices
 » CME: Cattle on Feed 2.1% Higher than a Year Ago
 » CME: CME Butter Market Comes Under Pressure
 » CME: Bearish Corn Outlook for 2012/13
 » USDA Outlook: Lower Feed Prices Improve Margins
 » CME: CME Cash Markets Find Support
 » CME: All Milk Price Lowest Since January 201
 » CME: New Crop Butter Up 6.75 Cents

Animax Veterinary Health
   European Union

 » Arla Bucks Recession Trends, Increasing Returns
 » Global Demand Supports Dairy Export Potential
 » CAP Reforms Face Bumpy Ride with EU Parliament
 » Council Votes to Improve Milk Markets
 » Schmallenberg no Risk to Humans
 » New Animal Welfare Strategy Driven Forward


 » Ukraine Meat and Dairy Production to Increase
 » Ukraine Suspends Pork, Dairy Imports from Belarus


 » Livestock Production Grew by 7.8% in Six Years


 » FMD Outbreaks Affect Pigs and Cattle


 » Egypt Buys More CGM and DDGS

   New Zealand

 » Accredited Effluent Design Companies - Industry Milestone
 » Fonterra Seeks Practical Raw Milk Changes
 » NZ Dairy Exports Rise as Meat Falls
 » Opportunity to Cut Electricity Footprint on Dairy Units
 » European Milk - No Threat to NZ Dairy


 » High Number of Rabies Deaths to Date


 » Protests Continue over Milk Price in Croatia


 » FMD in Libya Affects Cattle and Sheep


 » 13th ISVEE Conference, 2012


 » Experts Participate in FMD Conference in India


 » Canadian Cattle Gain Market Access to Azerbaijan


 » Applications for Milk Quota Repurchase Agreements


 » Decline in French Cattle Numbers in 2011

That's all for this week!

Events / Promotions
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Genus - Value through science and genomics
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