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TheDairySite Newsletter - 28 September 2012

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Friday 28th September 2012.

Charlotte Johnston - TheDairySite Editor

Charlotte Johnston

Drop in Milk Production Threatens Food Security

Low milk prices, extreme feed costs and pockets of unfavourable weather are expected to slow growth in milk production, and potentially lead to a global shortage.

The latest report from Rabobank suggests that the slowdown in milk production growth will be sufficient to undershoot even the modest growth in consumption.

With this in mind, supply shortages are inevitable, which will in turn see prices spike.

Rabobank expects prices to rise substantially in the international market in order to bring about the demand rationing needed to balance the market and move prices into alignment with the rallies already evident in US and EU wholesale pricing.

Last week, another Rabobank report warned that skyrocketing agricultural commodity prices are causing the world to re-enter a period of "agflation". The report said that food prices would reach record highs in 2013.

Rabobank estimates that the Food and Agricultural Organisation (FAO) Food Price Index will rise by 15 per cent by the end of June 2013. In order for demand rationing to take place, in turn encouraging a supply response, prices will need to stay high.

Current price inflation is the result of weather driven events in large exporting nations, principally a severe drought in the US (its worst since 1936) and similar water shortages in Russia and South America.

In the US, a bipartisan group of Senators have questioned whether farmers can continue to stay in business at the milk price floor now set by the federal government. The group has asked US Agricultural Secretary, Tom Vilsack, to review the situation, in order to avoid a food supply crisis.

Copa Cocega, representing farming unions in the EU has called on EU farm ministers to step up measures to better manage markets under the future Common Agricultural Policy (CAP).

Government support to agriculture in Organisation for Economic Co-operation and Development (OECD) countries fell to 19 per cent of total farm receipts in 2011, a record low driven by developments in international commodity markets.

Will action be taken to help producers maintain production, or will we face food inflation and shortages in 2013?

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Tropical Bont Tick Amblyomma variegatum Fabricius
The tropical bont tick, Amblyomma variegatum Fabricius, is a three-host tick that originated in Africa. It has a huge impact on the livestock industry, primarily through its transmission of heartwater disease.

Reports of Salmonella in Cattle in the UK
There were 20 per cent fewer Salmonella cases in cattle in 2011 than in the previous year, according to the latest report by the UK's Veterinary Laboratories Agency.

Whey vs Skim Based Milk Replacers - Impact on Calf Performance
Calves artificially reared on skim-based compared to whey-based milk replacers do not perform any better in terms of daily live weight gain, according to research from Harper Adams University College in the UK.

Surveillance of Salmonella Prevalence in Animal Feeds and Characterisation of the Salmonella Isolates
Twelve per cent of more than 2,000 samples of feeds, feed ingredients and pet products tested by USDA between 2002 and 2009 were positive for Salmonella, with Senftenberg and Montevideo being the most common serotypes.

Dr Art Currey Receives Mentor of the Year Award
US - In recognition of his commitment to the animal health industry and inspiring students and others in veterinary medicine, Art Currey, D.V.M., received the Mentor of the Year Award from Merck Animal Health and the American Association of Bovine Practitioners (AABP).
Merck Animal Health Awards $12,000 to Top Bovine Veterinary Students
US - During the past eight years, Merck Animal Health has awarded 57 scholarships to veterinary students pursuing careers in large animal medicine. This year, eight bovine veterinary students from across the United States were recognized at the American Association of Bovine Practitioners (AABP) Annual Conference. They each received the AABP Bovine Veterinary Student Recognition Award.

   United States

Farmdoc: Nearly All Illinois Counties in Disaster Area
EU, US Welfare Organisations Meet
Scientists, Farmers Call for End to Antibiotic Use
Dairy Farmers Demand Immediate Action on Farm Bill
World Dairy Markets Tight in Last Quarter
US Dairy Export Volumes Strong in 2012
ConAgra Consumer and Commercial Food Sales Up
Report Concludes Dairy Security Act in Farm Bill Best for Farmers
Beware of Cyanide Poisoning
Managing Soil Copper in Crops Irrigated with Cattle Footbath Wastewater
Soybean Prices Tumble but Some Positive Developments
Obama, Romney Outline Positions on Farm Issues
Milk Producers Federation Distorts CRS Report


Milk Quality to be Improved
Seasonal Variations of Milk Affect Cheese

   United Kingdom

Research into Reuse of Agricultural Waste
Cattle Numbers Contract in UK
Farmers Warned to Look Out for Signs of Schmallenberg
Farmers Must Not be Disadvantaged in Policy Reforms


FMD Diagnostics Key First Step in Disease Control
Support to Agriculture at Historic Low
Chinese Contract Causes Arinco Expansion in Denmark
Canada Must Abandon Dairy Protection, if Joining TPP
Milk Shortages Could See Global Price Hike


Knowledge of Animal Genomes Contributes to Food Security

   European Union

Council Looks to Reform Agriculture and Fisheries Policies
European Dairy Association Hosts World Dairy Forum 2012
Measures to Manage Markets Must be Stepped Up
Significant Progress on Ag Policy Made
Increasing Transparency of Farm Subsidies
Milk Link, Arla Merger Approved


Brazil Live Cattle Exports Up in 2012

   Russian Federation

Russia Loses 4.3m Grain Hectares to Drought


Farmers Disappointed Some Co-ops Did Not Increase Milk Price
Volatility Impacts Irish Food Export Values
Compulsory Bovine Viral Diarrhoea (BVD) Programme Launched
Poor Weather Sees Poor Silage Quality


2013 Welfare Conference: Call for Abstracts


Latin American Animal Nutrition Congress


Be Prepared for Changes to Livestock Transport Rules
Dairy Tactics for Tight Times
Improving Food Chain Relations

   New Zealand

Fonterra Sends Darfield's 1st Shipment to China
Kiwi Dollar Costs Fonterra the $20 Billion Barrier


Public Support Sought on 2012 Census of Agriculture, Fisheries

Events / Promotions

The Drost Project - A Visual Guide to Porcine, Pig Reproduction.
Eurotier 2012
Biomin - Mycotoxins
VIV China 2012
V Latin American Animal Nutrition Congress. CLANA

Bayer Animal Health

CID LINES - Innovative Hygiene Solutions

Biomin - The Natural Way


Animax Veterinary Health
DNA Landmarks - dedicated to delivering DNA marker services to the agricultural industry
The Pig, Poultry, Beef, Fish, Dairy, Meat, Cattle, Crop & Bioenergy Sites
From 5M Publishing
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