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TheDairySite Newsletter - 17 April 2014

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Thursday 17th April 2014.
Michael Priestley - Editor

Michael Priestley

Novus International

MSD Animal Health

Will Anything Replace Milk Quotas for the Europeans?

A major step forward in dairy market liberalisation was taken by the European Commission this week with the launch of a milk market ‘observatory’.

Commissioners say the scheme will assist stakeholders in the dairy supply chain to make ‘well-informed business decisions’ and reduce market volatility.

Through comprehensive market data and analysis, the observatory will guide the dairy sector into a new post-quota era which will see Europeans marketing more dairy abroad.

An Economic Board delivering regular reports for the general public will be one of many new metrics after 30 years of quota restriction ends, allowing farms to lift output.

But while several nations are targeting considerable production increases after quotas are lifted on March 31 next year, industry leaders expect only a marginal production lift.

This is according to European Dairy Association (EDA) President Michel Nalet who dismissed fears of rocketing milk production last October in a set of dairy policy recommendations.

In its report last year the EDA stressed that protecting marginal production areas -such as upland dairy farms – and managing volatility with futures contracts were vital for the future.

Two markets – NYSE Liffe and Eurex – have offered dairy products on futures contracts. However, product sold on both markets has been minimal.

Among the suggestions for more efficient, profitable dairying, many have suggested producer co-operatives as a means of empowering farmers.

This week, TheDairySite learned of such a collaborative arrangement in the North of England that is pooling milk from three farms to increase bargaining power.

Lying only minutes from the western edge of Sheffield, the project hopes to market up to 42,000 litres every week for a price that reflects product quality and production costs.

In doing so, the initiative is ticking many boxes for dairy analysts and commentators by uniting three small Pennine farms together to seize control of processing and marketing, ensuring a shorter supply chain.

And while this may not be possible for all, other measures, such as selling forward and greater market transparency are expected to help the sector as a whole.

In The EU Dairy Sector: Developing Beyond 2015, the EDA said that volatility abounds in both product price and input costs and for this reason needs public support until private measures can strengthen.

As a sector in the process of deregulation, the EDA insists more time is needed for private sector instruments to manage in price and profit margin into the future.

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Company News

Irish President Visits Benchmark Holdings Farm
UK - The President of Ireland, Michael D Higgins and Sabina Higgins have today (Thursday 10 April) visited a leading sustainable farming research and innovation centre, the Food Animal Initiative (FAI), in Oxford, as part of a landmark state visit to the UK.
Market Reports

USDA National Dairy Products Sales Report - 16 April 2014
USDA Livestock, Dairy and Poultry Outlook - 15 April 2014
Irish CSO Reports: Agricultural Price Indices - February 2014
USDA Feed Outlook - 11 April 2014
Availability & Usage of Milk by Dairies in England & Wales – February 2014
GB Animal Feed Statistical Notice - February 2014

Global Dairy Industry News

   European Union

New Market Monitor Announced for European Milk
How Can EU Food be Produced to Higher Welfare Standards?
Project Promises Better Food Safety in Europe
Drought Measures, Milk Quotas on EU Ag Committee Agenda
Lords Call for EU Action on Food Waste
Agriculture MEPs Back Move for Promotion of EU Farm Produce


Spanish Dairy Farmers Paid 16 Per Cent More in February


Collaborative Efforts to Promote Judicious Use of Antimicrobial Drugs in Food Animal Production

   United Kingdom

New Dairy Cooperative Takes Shape on Sheffield's Doorstep
Green Party Opposes 'Factory Farming', Live Animal Exports
Red Tape Cut Without Fall in Farm Standards

   United States

Voluntary Withdrawal of Antimicrobials for Use in Food-Producing Animals
NFU Statement Safe, Accurate Food Labeling Act
Control Flies and Vaccinate to Keep Pink Eye Under Wraps
Daily Dairy Trading: Major Price Fall Bubble Bursts for Cheese
USDA Supply, Demand Report: Friendly for Corn, Soybeans; Bearish for Wheat
Cargill Sees Earnings Dip
US Food Prices on Downward Trend


Agriculture's Greenhouse Gas Emissions on the Rise
How Much is BVD Costing Your Herd?
Overcoming Information Gaps in Africa’s Livestock Sector Essential

   New Zealand

Getting Cows Fatter: Time is of the Essence


Plants Host Pathogenic Bacteria from Livestock Farming
Knowledge of Vulnerability in Supply Chain to Detect Food Fraud


Austrians Link Dairy Robots with Higher Somatic Cell Counts


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