TheDairySite Newsletter - 16 March 2012

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Friday 16th March 2012

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Welcome to this week's newsletter

Editorial: Dry Weather and Drought - A Worry to Livestock Producers

This week, drought and dry weather seems to have dominated the news.

In the European Union, after an extremely dry winter, the Spanish feed sector is facing new challenges, with low availability of water for irrigation.

Spain represents over 50 per cent of the total dried fodder production in the EU, with alfalfa being the number one crop. With subsidy payments declining and drought affecting production, it is expected that this year yields will decline.

Pasture land has been affected by dry conditions and less pasture availability is forcing extensive livestock farmers to increase input costs by supplementing their animals in quantities over normal levels.

The expectations for grain yields are not much better, with initial soil moisture, essential for crop development, particularly low.

Crops in Andalucía, Castile-La Mancha and Aragón already show signs of lowered vegetation health.

In the United Kingdom, drought is already preventing water abstraction affecting crop farmers. This week the Environment Agency has warned that limited grass growth and water shortages could affect supplies of drinking water for livestock.

The European Feed Manufacturers Federation (FEFAC) has reported that compound feed production in the European Union is down slightly for 2011. For cattle compound feed, a severe drought in early 2011 affected forage stocks, despite a good Autumn that favoured grass growth.

In 2012, FEFAC expects compound feed production to remain unchanged from 2011 figures.

In the United States dry weather is worrying producers, with again, a lack of moisture for the upcoming crop season. Total precipitation was less than 50 per cent of normal in much of the Great Lakes region and the Southwest.

Current grain shortages could push Mexico’s imports this year above 9.5 million metric tons (374 million bushels) of corn and sorghum above 3 million tons (118 million bushels).

While crop losses are likely to create more demand for imports, especially from the US, the drought-related losses in the livestock sector are a potential offset. Mexico’s ministry of agriculture estimates that 60,000 cattle have died and an additional 89,000 have been culled by producers.

Drought conditions in Brazil and Argentina have severely damaged crops, with some farmers in Argentina having reportedly abandoned crops, or replanted land with soybeans.

It was also announced this week that China's groundwater irrigation system is responsible for polluting the atmosphere with more than 30 million tonnes of CO2 per year. China is actively looking to increase livestock production although the sustainability of this aim is questionable when it takes 500 litres of water to grow the wheat for one small loaf of bread.

For livestock producers and packers this drought is just one more threat to their margins.

With severe drought and dry conditions already affecting 2012 crops, there will undoubtedly be an effect on crop prices. How this will affect livestock producers is relatively unknown as many countries are likely to see herds liquidate.

Despite crops suffering, there is still resistance in the EU, in particular, to adopt genetically modified (GM) technology.

Charlotte Johnston

This Week's Feature Articles

We have 5 new features this week:

Changes in Composition of Colostrum of Egyptian Buffaloes and Holstein Cows
Researchers in Egypt report what they describe as dramatic changes in the composition of buffalo colostrum over the first five days after calving, as with cow’s colostrum, and the composition of both colostrums approached that of normal milk by the end of that period.

Antibiotic Use in Livestock Under Increased Scrutiny
Antibiotics have been powerful tools in the development of livestock systems that produce a marvellous quantity of economical, safe and nutritious food in the United States. These products are not without risks and drawbacks, however. Increasing opinion mounts to further regulate the ways in which antibiotics are used in livestock, write W. Dee Whittier, DVM, Jason Carter and Rodney Leech, Virginia Cooperative Extension.

Feeding Rapeseed to Reduce Emissions and SFAs
Adding milled rapeseed to dairy rations reduced methane emissions, and reduced the saturated fatty acid (SFA) content and increased the cis-monounsaturated fatty acid (MUFA) content of milk, according to research from the University of Reading.

Global Dairy Outlook: Processors Struggling
The operating environment for dairy processors has changed substantially in the last four years. 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”.

Land Application of Livestock and Poultry Manure
Factors affecting the fertiliser value of manure and recommendations for application are covered by Mark Risse, Extension Engineer at the University of Georgia's Department of Biological and Agricultural Engineering, as well as practical aspects on how much manure can be applied and handling solids in liquid manure.

Market Reports

» USDA GAIN: Spanish Dried Fodder Sector Faces New Challenges
» USDA Feed Outlook March 2012
» USDA Livestock, Dairy and Poultry Outlook March 2012
» Dairy Products Prices Highlights

Company News

Ceva Appoints Large Animal Manager in NI
NORTHERN IRELAND, UK - Ceva Animal Health has appointed Susan Brimacombe as the new Large Animal Territory Manager for Northern Ireland.

Global Dairy Cattle Industry News