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TheDairySite Newsletter - 31 August 2012

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Friday 31st August 2012.

Charlotte Johnston - TheDairySite Editor

Charlotte Johnston

Editorial: Slow Down in Growth for New Zealand

The New Zealand dairy industry has ridden a wave of growth, with milk production increasing by almost 50 per cent over the past decade.

However, a new report by Rabobank questions just how much more milk New Zealand can produce.

Good returns, increased capital investment and strong asset growth have fuelled the development of new dairies and processing facilities.

However, Rabobank senior analyst Hayley Moynihan says that in the future, growth will no longer be driven by increasing the number of dairy cows in the national herd, but by productivity improvements as farmers strive to extract greater production per cow.

New Zealand dairy operations are becoming increasingly intensive, with feed and interest costs becoming embedded in production systems.

"While production is largely based on an extensive pasture-based system, farmers have increased output through growing more feed on existing or purchased land or by buying in supplementary feed and this has structurally increased their cost base," Ms Moynihan says. "As a result, fertiliser, feed, wages and interest costs now comprise almost 70 per cent of net dairy cash income, up from 40 per cent in 1999/00."

The tightening of environmental regulations is also seen as a constraint to future growth.

Whilst New Zealand milk production will continue to grow, it will be at a much slower pace than has previously been seen.

Intensive systems will continue to find a place in the industry, as the amalgamation of smaller farms continues, as well as the "corporatisation" of dairy farms.

A slower production growth will also present challenges for processors and exporters.

Will New Zealand be able to keep pace with growing demand from importer countries?

Charlotte Johnston

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Drought, Shortages, Rising Food Prices for World Water Week
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America Wastes 40 Per Cent of Food Supply
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Dairy, Meat, Poultry Processing Research Boost
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Drought Increases Herd Sell-off, Hay Price Increase
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Iowa to Require Milk Tests for Aflatoxin


Brazilian Farmers Benefit for Global Grain Slump


Engaging and Communicating on Animal Welfare
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More Live Export Opportunities Must be Sought Out
Glanbia Price Increase - Step Towards Profitable Milk Prices
Glanbia Announces Joint Venture

   United Kingdom

Milk Buyers Challenged to Reverse Price Cuts
New Repellent Could Prevent Schamallenberg Spread
Livestock 2012: Dairy Coalition Roadmap
Consumers Willing to Pay more for Welfare-Friendly Food
Schmallenberg Virus - Remain Vigilant, Scotland Offers Free Tests
Wisemilk Initiative to Agree How Farmgate Milk Price Valued
Four-Year Badger Vaccination Programme Underway

   New Zealand

Fonterra Lowers Forecast Payment
Fonterra Milk Pricing Method Approved
Slower Growth in NZ Dairy Expected


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Tax Relief for Drought-Affected Livestock
Ag Marketing Boards, Supply Management are Costly for Producers
Farm Food Discovery Centre Builds Awareness of the Story of Food


2012 Dairy Farmers of the Year Finalists


Agriculture, Fisheries Exports Grew 12.5 Per Cent in July

   Viet Nam

Banks to Help Livestock, Fisheries Sectors


Chinese Farm Produce Prices Keep Rising


Agricultural Exports Rose in the First Half of 2012

   Russian Federation

Kurgan Strengthens Veterinary Control

Events / Promotions

The Drost Project - A Visual Guide to Porcine, Pig Reproduction.
Biomin - Mycotoxins

Animax Veterinary Health

Biomin - The Natural Way
More on VIROCID - The Global Disinfectant

DNA Landmarks - dedicated to delivering DNA marker services to the agricultural industry

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