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TheDairySite Newsletter - 25 October 2013

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Friday 25th October 2013.
Michael Priestley - Editor

Michael Priestley

Boehringer Ingelheim

MSD Animal Health

Novus International

What Does Milk Cost a Farmer?

Each litre of milk sold in the world has a cost of which 70-80 per cent is incurred at producer level.

Managing economic sustainability and profits is therefore determined by controlling these costs, according to the International Farm Comparison Network.

Presenting world dairy production figures at the World Dairy Forum in Cologne, Germany, last month, managing director of the IFCN, Torsten Hemme said that dairy farmers have to be competitive with different milk producing systems and announced that a cost defining tool is progressing to aid farm efficiency.

Average herd figures show the variety in systems being employed around the world and the gulf in production costs.

Data from 2011 showed that milk is more expensive to produce in Canada than the US and that Italian and Scandinavian producers had higher costs than France, Spain and Germany, which in turn had higher costs than the UK.

Milk was cheapest to produce in central Africa and Pakistan as Australia and New Zealand benefitted from cheaper farming than global competitors in the US and EU.

The IFCN expects world milk output to increase 2.3 per cent over the next 10 years, to be driven largely by 50 per cent increases within India, Africa and South America.

Europe, the US and Russia are not expected to lift production greatly, the US being the highest of the three at an estimated 15 per cent.

This was part of several presentations at the Forum which underscored how important economic stability and sustainability are for the dairy sector.

Michel Nalet, European Dairy Association president, discussed national sustainability strategies in the Netherlands and UK.

He told TheDairySite that the two programmes extend beyond the scope of farm economics and into environmental measures.

Both the UK’s Dairy Roadmap and the Dutch Sustainable Dairy Chain have made inroads into reducing the impacts from farmers and processors making the industry ‘greener’.

“The UK’S Dairy roadmap has yielded a 73 per cent reduction in waste to landfill on the processors’ side, and an uptake of 78 per cent of water efficiency measures on the producers’ side,” said Mr Nalet.

“The Dutch project, presented by Mr. Boer from FrieslandCampina, laid out clear targets in relation to climate and energy, animal welfare, grazing and biodiversity.”

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This Week's Articles and Analysis

World Dairy Forum Focuses on Making Milk More Sustainable
A host of dairy experts assembled to discuss the dairy sector's future and how sustainable milk production can be ensured, including a rigorous assessment what sustainable dairy involves.

Survey of Visitors on Swedish Livestock Farms with Reference to the Spread of Animal Diseases
From a survey of Swedish livestock farms, it was revealed that the average number of professional and non-professional visitors per day was 0.3 and 0.8, respectively. The number of visits was affected by herd size, farm type and season, which has implications for farm biosecurity and the potential for the spread of diseases.

Ensuring Healthy Cattle With Roof Design
Ensuring cattle are kept in the right indoor environment is one of multiple measures to safeguard against pneumonia, one of the UK's most costly cattle diseases.

How to Manage High Somatic Cell Count in Late Lactation
It is mastitis decision time this month for farmers drying cows off with high somatic cell counts, advise Irish dairy specialists at Teagasc.

Company News

Six Provinces See Second Round of Foot and Mouth Vaccinations
ARGENTINA – Animal health services have commenced the second round of foot and mouth disease (FMD) vaccinations, to run from 15 October to 15 December.
Biomin Establishes New Business Unit in the UK
UK - New UK operations will focus on local feed and livestock needs with customer-specific technical expertise and the full suite of well-established Biomin product brands.
Market Reports

Economic Report NAB Post-farmgate Agribusiness Survey - September Quarter 2013
USDA GAIN: Chile Dairy and Products Annual 2013
Irish CSO Reports: Regional Accounts for Agriculture 2012
USDA National Dairy Products Sales Report - 23 October 2013
USDA GAIN: Brazil Dairy and Products Annual 2013
USDA Cold Storage - 22 October 2013
USDA GAIN: New Zealand Dairy and Products Annual 2013
USDA Milk Production -21 October 2013
USDA GAIN: India Dairy and Products Annual 2013
USDA GAIN: Australia Dairy and Products Annual 2013
USDA GAIN: EU - 27 Dairy and Products Annual 2013
NAB Australian Rural Commodities Wrap - 18 October 2013
Dairy Australia - Fortnightly Update 18 October 2013

Global Dairy Industry News


Ways to Reduce Cattle Sector Emissions Lie Within Reach
Brazilian Competition Now Rests on Infrastucture
FMD in Sub-Saharan Africa Moves Over Short Distances; Wild Buffalo are a Problem
FMD in Sub-Saharan Africa Moves Over Short Distances; Wild Buffalo are a Problem
EU-Canada Free Trade Deal to Benefit Fishermen and Farmers
What Drives Grain and Feed Markets?
FMD NEWS: FMD in Sub-Saharan Africa Moves Over Short Distances
Hopes for Farm Deal at Bali Trade Talks

   United States

Dairylea Proposes Dairy Farmers Of America Merger
Daily Dairy Trading: Nonfat Dry Milk and Cheddar Blocks Both Lift in Spot Markets
Record Performance Announced in Observance of National Co-op Month
Daily Dairy Trading: Trading Interest Shown for Cheese on Wednesday
Daily Dairy Trading: Cheese Gap Narrows as Barrels Push Over Three Cents Higher, Tuesday
Daily Dairy Trading: November Class III Milk Contract Reports Losses, Monday
Cattle Prices Continue to Rise
Wyckoff's Weekly Cattle Forecast: All Await USDA Reports
Small Changes in Ag Practices Could Reduce Produce-borne Illness
Daily Dairy Trading: Class IV Closes Lower as Spot Market Moves, Friday
Sow Now For Rye Cover Crop Success
Daily Dairy Trading: Bidding Lifts in Spot Market as Futures Report Steady Prices
Obama Signs Bill to End US Shutdown


Argentina Reports Record Growth in Pig, Poultry and Dairy Production


Farmers Take Charge of Dairy Association

   New Zealand

Foot and Mouth 'Preparedness' Plan Welcomed by Cattle Specialists
New Zealand 2014 Milk Supply Rebounds after 2013 Drought

   United Kingdom

Production Costs Extended to Tesco Cheese Contracts Next Month
Tenant Farming in Spotlight at National Conference
Welsh Dairy Farming Has Bright Future, Says Former Farm Minister

   European Union

Guidance Offered for Renewal of Feed Additive Authorisation
Reduction in Veterinary Antibiotic Use in EU


Hungarian Cattle Numbers on the Rise


Monitoring Food Loss and Waste Essential to Global Fight Hunger
Monitoring Food Loss and Waste Essential to Hunger Fight


Already Reports of a 15 Per Cent Increase in Crimean Cattle Herd
Ukrainian Agri Sector Shows Steady Increase in Gross Production


Australian Farmers Welcome New Shadow Ministry


Spanish Dairy Sector Begins to Turn Corner


Organized Small Farmers Become Entrepreneurs


French Farmers Speak Out Against Food Waste


Nicaragua Waits on BSE Decision


Tariffs Too High Says Conaprole Boss


Mystery Brucellosis Outbreak Hits Panama


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


Reducing the risk of milk fever, That’s the beauty of Bovikalc


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


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