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TheDairySite Newsletter - 3 January 2014

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Friday 3rd January 2014.
Michael Priestley - Editor

Michael Priestley

Intriguing Year Expected for Global Dairy Sector

The coming year is expected to be an “intriguing” one for the global dairy sector according to analysts at Rabobank.

Through the autumn of 2013, Whole Milk Powder values tracked around $5,000 after the spring spike.

Higher prices seen through 2013 are expected to remain until the second quarter 2014, when they will ease.

But, Rabobank says that this drop will be limited, amid growing Chinese demand and inventory replenishment.

“The rate of price reduction will be limited by structural constraints on suppliers, the need to replenish depleted buyer inventories, and on-going demand growth in line with a slow economic recovery,” Rabobank said.

The production spike relates to all key export regions from 13 August up to October, excepting Australia, where production was back 4.3 per cent because of the continued drought.

Meanwhile Europe enjoyed a better summer, producing 3.6 per cent more milk year on year.

A ‘looser’ market should be created by strong northern hemisphere production following an ‘exceptional’ southern hemisphere season, which will all meet China’s needs.

Farmgate prices around the world are also predicted to be strong, assisted by lower corn and soybean prices.

Rabobank believes that 10 to 40 per cent falls in grain and soy prices will buoy intensive feeders and in particular, South America is expected to raise production of milk.

This has already been seen in Brazil, which coincided with record prices, up 27 per cent, despite inconsistent consumption.

Rabobank also forecasts that Argentina is set to benefit from improved feed costs, although economic uncertainty means dairy investment has been lacking, and this will hit exports.

Meanwhile, the dairy sector in New Zealand has welcomed the latest government stance to control the use of antibiotics.

DairyNZ and the Dairy Companies Association of New Zealand (DCANZ) say that the Ministry for Primary Industries (MPI) report on antibiotic sales highlights the on-going importance of animal owners working with their veterinarians to carefully manage antibiotic use.

"Antibiotics are an important tool in managing diseases for both humans and animals. Ensuring their future effectiveness is in everyone's interest. The dairy industry's position on antibiotic use is to use as little as possible without compromising animal welfare," said DCANZ Executive Officer, Kimberly Crewther.

"Prevention is the best approach and the New Zealand dairy industry has a strong focus on animal health management systems that prevent the occurrence of disease. This is especially the case for the key areas of lameness and mastitis," she added.

DairyNZ's Chief Scientist Dr Eric Hillerton said the mastitis rate in the New Zealand dairy herd is less than half that reported from the USA and a quarter of that in the UK.

"Animal health management is a partnership between dairy farmers and their veterinarians," he said.

"Prudent use of antibiotics prescribed by veterinarians, along with key disease prevention and treatment strategies, is essential to minimise disease and safeguard animal welfare. “

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Global Dairy Industry News

   United States

What Will Be the Big Ag Issues in 2014?
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Crop and Livestock Price Prospects for 2014
US Dairy Prices Rising
US Consumers Confused about GMOs
Farm Bill Deal Close But Will Not Be Announced Until January


Panama Strengthen Cooperation on Agri-food Matters

   Russian Federation

Mixed Year for Russian Meat Sector
Vets Report Cattle Deaths on Imported Breeding Stock
Agricultural Bank Finances Major projects in Kaluga Region

   United Kingdom

Dairy UK Appoints New Communications Manager
Simpler Testing for Cattle Herds with TB Breakdown
Breeding Healthy Food in a Hungry World
Farmers Warned to Cooperate or Risk Losing Business
Implementation of Common Ag Policy Announced
UK Farm Animal Antibiotic Use Figures for 2012 Updated

   New Zealand

DairyNZ, NZAEL Support Approach to Minimise Impact of Fertility1
Dairy Industry Committed to Managing Use of Antibiotics
Red Meat Sector Strategy Announces Report
2014 - A Year of Change for Federated Farmers


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Livestock Owners Urged to Prepare for Heat
Queensland Cattle Producers Look to Stronger Korean Market
Australian White Paper to Boost Productivity


Where Will Beef and Dairy Markets Go in 2014?
Feed Antioxidant Market Buoyed up by Demand for Animal Proteins
Abandoned Farmland Widespread in Central and Eastern Europe
Report: Europe Tops Veterinary Vaccine Market
Crop Production: The Animals or Us?
Holistic Farming Approach to Meet World Food Demand Sustainably
Should Livestock Numbers be Reduced to Curb Climate Change?


Academic Advocates Fee for Antibiotics Used in Vet Medicine
Growing Adaptation Program to Fund Water Infrastructure Projects


Report Warns of Growing Feed Shortage in India


Bluetongue Discovered on Calabrian Cattle Farm
Was 2013 a Year To Forget?


Price of Chinese Agricultural Products Shows Slight Increase


US to Consider FMD Status of 14 Brazilian States


Variation in Land-use Intensity Leads to Higher Biodiversity

   European Union

EU Feed Industry Raises Concern over Low-Level GMOs
EU Commission Progresses Research Plans on Agriculture Sustainability
Air Quality Policy Will Impact EU Livestock Farming

   South Africa

FMD NEWS: FMD Outbreaks Reported in South Africa


Cloning Ban 'Would Be No Loss'


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Farm Output Up 18 Per Cent So Far for 2013


French Food Pricing Observatory Files Findings


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