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TheDairySite Newsletter - 28th March 2014

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Friday 28th March 2014.
Michael Priestley - Editor

Michael Priestley

MSD Animal Health

Novus International

All Kiwis Benefit From the White Stuff

Record revenue is in sight for Kiwi dairy giant Fonterra as it edges towards ‘the four minute mile’ – breaking the NZ$20 billion barrier.

Should it be broken, it would be hailed as a watershed juncture for New Zealand’s economy and a ‘boost’ amid widespread North Island drought and lower results on recent GlobalDairyTrade auctions.

High expectations follow a bullish expansion programme seeing Fonterra explore emerging markets, push high value nutrition products and build foodservices.

The priorities stem from its V3 business strategy.

Other V3 initiatives include addressing input costs and selectively investing in milk pools to boost income from outside New Zealand.

In the last two weeks, company chairman John Wilson visited Fonterra’s new NZ$126 million Waitoa UHT plant and work has commenced on a West Java manufacturing plant to capture a predicted 5 per cent annual growth in Indonesian dairy consumption to 2020.

Aside from benefiting Fonterra and shareholders, expanding domestic and overseas activity has been welcomed for its trickle down effect on the national economy.

This follows a record NZ$8.75 kg MS forecast pay-out, worth NZ$13.8 billion to the New Zealand economy as a whole.

Of this, 50 cents in every dollar heads to local businesses straight from the farm bank account, revealed Fonterra’s Mr Wilson.

“Almost $7 billion dollars is spent locally by Fonterra supplier-shareholders, so it’s like a shot of adrenalin into the bloodstream of our economy, the provinces,” said Federated Farmers Dairy Chairperson Willy Leferink this week.

“We also know that with every dollar in the payout farmer’s receive, it puts NZ$300 into the back pocket of every man, woman and child.

“If we include the dividend, a forecast NZ$8.75 per kilogram of milksolids means we are talking thousands of dollars," he added. 

Further to fiscal benefits at home, Fonterra has launched a knowledge sharing partnership with leaders across many facets of China’s dairy sector.

The joint partnership features an annual China-NZ forum to facilitate researcher collaboration and will focus on developing industry policy and technology.

Wang Yuchan, Chinese government dairy scientist said the cooperation would allow more embryonic facilities to capitalise on a wealth of New Zealand expertise.

Help is to be directed at local farms and processors through the ‘Golden Key’ training programme, providing personnel with training and facilities.

Assessing the impact of the initiative this week, Mr Yuchan said: "This will help us to promote the sustainable development of dairy in both New Zealand and China.”

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   United States

Daily Dairy Trading: Futures Close Higher With Spot Cheddar Dipping, Thursday
Daily Dairy Trading: Spot Butter Highest Since 2011
Alliance to Discuss Sustainability at Summit
EPA's Proposed Clean Water Act Rule Pleases Farmers Union
Wyckoff's Weekly Livestock Outlook: Mixed Picture Across Markets
PEDV Will Cause Significant Shortfall, Other Meats to Fill the Gap
Daily Dairy Trading: Busy Bidders Leave Cheese Sky High, Monday
NFU Outlines Funding Priorities for 2015
Consumer and Commercial Food Sectors Hit ConAgra Results
Organic Sector Continues to Grow
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Chinese Edge Closer to Mastitis-free GM Cow
Fall in Prices of Chinese Agro-foodstuff
Dutch and Chinese Discuss Dairy Collaboration


Spanish Farm Minister Calls For Milk Monitoring After Quotas
Spanish Farmers to Lose Out From French Imports
90 Per Cent of Milk Now Under New Dairy Package Contracts

   European Union

New Plans for European Organic Farming
Antimicrobial Resistance Remains in Commonly Detected in Bacteria in Humans, Animals and Food
EU Council Addresses Organic Production, Meat Labelling
Agricultural Marketing to be Discussed at Next Council Meeting


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Milk Price Will Ease Into Summer, Say Industry Analysts
Weather Poses Farmer Headaches Both Sides of Atlantic
Feed Industry Best Practice Manual Launched in Spanish
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New Opportunities in East Africa for NGOs
How Long Will Current US Dairy Margins Last?
World Water Day: Agriculture and Water Inextricably Interlinked

   New Zealand

Don't Allow 'Short-sighted' Cuts on Tuberculosis Eradication

   Viet Nam

Viet Nam Holds Livestock, Dairy and Aquaculture Expo

   Korea, North

FMD Reported in North Korean Pigs in January

   Congo, Democratic Republic

Fishermen, Farmers Express Concern Over Oil Exploration in Virunga


More Traceability For Canada's Cows and Milk


Anthrax Kills Four Cattle in Southern Africa


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