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TheDairySite Newsletter - 15 February 2013

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Friday 15th February 2013.
Michael Priestley - Editor

Michael Priestley

Drought and Demand Mean Mixed Australian Outlook

Extreme heat in western areas, flooding in the east and unfavourable input costings have caused problems for Australia dairymen as a strong Australian dollar limits export potential and milk discounting has extended to petrol stations and convenience stores.

Market experts at Dairy Australia (DA) have said the retail market reads positively although consumers remain cautious. Milk sales have risen 2.2 per cent since on this time last year and branded sales have risen 15 per cent.

Discounting milk has extended to convenience and petrol stores. Farmers have felt the pinch with electricity prices rising along with other inputs.


According to Dairy Australia’s February Dairy Situation and Outlook the US demand did not contract as much as expected. However, a strong Australian dollar is constraining exporter returns and dairy export capacity has been hit by unfavourable production conditions.

Longer term growth is expected due to demand in India and China developing as their economies grow. Demand for infant formula and dairy proteins has remained high.


Cull Cow rates are expected to continue a downward trend as low values (down 22 per cent on average) counter cull value benefits in the light of lower production margins.

Live exports have risen by four per cent to 77,092. This is despite on-going legal and political difficulties in China forcing shipment plans to fall through.
Subsequently local heifer markets have seen low prices due to abnormally high throughput.

Feed Grains

Global corn stocks remain stretched following weather disruption to Black Sea, US and UK crops last year. DA analysts predict this to continue until the South American harvest - starting around now - comes to fruition.

Delivered feed grains for Melbourne are up 46 per cent for wheat on last year at AUS$288/tonne and 30 per cent for barley at AUS$266/tonne.


Excellent hay and straw quality underpins high prices. Straw has been recommended as a good fodder option as Asian demand has caused a hay price step of AUS$ 10- 30/ tonne over 2012 levels.


Weather issues have weakened already low demand keeping prices in check.

Phosphate prices for December 2012 were 16 per cent lower than the previous year; urea was also 17 per cent down.

Urea values are forecast to remain strong due to considerable northern hemisphere demand.

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This Weeks Articles and Analysis

BVD in Free-ranging Wild Ruminants in Switzerland
In the frame of an eradication program for bovine viral diarrhea (BVD) in Swiss livestock, the question was raised whether free-ranging wildlife could threaten the success of this sanitary measure.

Emerging Global Diseases
The increasing demand for animal protein and the rapidly growing markets in Latin America and Asia are driving an increase in the production and trade of food animals globally.

Going Beyond the Barnyard to Stop Flies
Arthropod pests can cause discomfort in cows and result in lower milk yield, weight gain and feed efficiency. Researchers at the University of Nebraska report on what new solutions might be available.

Farm Chokchai – More Than Just Dairy Cows
From a 40 hectare farm an enterprise boasting steakhouse, an agro-tourism tourism attraction, 3200 hectares, 3000 cows and a milk processing plant has been developed, writes Stuart Lumb for the

Australian Dairy Farming Overview-2012: Consumption of Dairy Products
Australia's high milk consumption figures continue being strengthened by strong increases in Yogurt consumption the last 20 years as a leading 'healthy snack' and the rise of cheese consumption.

Market Reports

USDA Feed Outlook - February 2013
USDA National Dairy Products Sales Report - 13 February 2013
USDA Agricultural Projections to 2022 - February 2013
Utilisation of Milk by Dairies in England & Wales – December 2012
Dairy Australia: Dairy 2013 Situation and Outlook - February Update
USDA Livestock, Dairy and Poultry Outlook - February 2013

Global Dairy Industry News

   United Kingdom

Fluke Battle Angst Rises as Vets Demand Flukicide Availability
Less Favoured Areas in the Spotlight After 40 Years
Lasagne Horse Contamination Requires Answers and Reassurance
NFU Reacts to EU Budget Deal
Defra Show Disease Trend in TB Update
Coping with a Volatile Feed Grain Market


Health Concerns Arise Over Cattle Smuggling


EU Action Demanded After Turkish Cheese Ban

   United States

Understanding Cost of Production to Manage Risk and Maximize Profit
American Agriculture Gets Super Bowl Boost
Forage Focus: Fertilizing Pastures in the Spring
CME: Negative Reaction to WASDE Report
Evaluating Corn and Soybean Consumption Projections
US Hits Out at Russia over Meat Import Ban
No Decline in 2012 Dairy Cow Numbers Despite Drought
NFU Encouraged by President's State of Union Address
Body Score and Supplementation the Key for Successful Calving


Nutreco Reports Strong Year - On Track Towards 'Ambition 2016'
CattleFax: Liquidation Permeates All US Cattle Segments
FAO Examines Children's Work in Livestock Sector
Impact of Unchecked Antibiotic Use in Animals on Global Human Health
Strong Year and Fourth Quarter Results For Dean Foods
Transatlantic Dairy Negotiations Well Received


Biosecurity for Canadian Dairy Farms National Standard Released
Sustainable Dairy Farming For the Future
Independent Panel Appointed in Response to E Coli Outbreak
New Variety of Sainfoin Could Mean Bloat Free Alfalfa Forage

   Russian Federation

Rosselkhozbank Invests in Kaliningrad Dairy Complex

   European Union

Towards Global Feed LCA Guidelines
NFU President Secures Role as EU Food Chain Chairman
Agriculture Committee Votes on Farm Policy Reform Plans


Dairy Industry Posts 12% Growth in 2012
Insurance Coverage Available to Farmers, Fishers in N Samar
DA Readying Livestock, Poultry Subsectors for Export


United Dairy Farmers Targets Milk Price
NSW Farmers Urge Supermarkets to Think Twice About Price War
Fertiliser Usage Comments Misplaced


FMD NEWS: Ngara Under Quarantine to Contain FMD


Danish Farmers Under Pressure From Superlevy


OIE: Lumpy Skin Disease Outbreak Reported in Northern Regions


Schmallenberg Seminar to Provide Disease Update


Agreement Aims to Put Balance Back in Milk Chain


EU Delivers €11 Billion Over Seven Years For Irish Agriculture

   New Zealand

Food Prices Rise 1.9 per cent in January


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


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