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TheDairySite Newsletter - 18 July 2014

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Friday 18th July 2014.
Michael Priestley - Editor

Michael Priestley

Worries Mount Over Fonterra Price Revision

Alarm bells are ringing in New Zealand over the prospects of farmers losing Fonterra’s NZ$7.00 forecast pay-out.

Wednesday’s Global Dairy Trade (GDT) Auction yielded an 8.9 per cent slide, taking the world dairy price to its lowest point since October 2012 and heightening fears of a downwards price revision.

Lower prices were expected this year but the extent of the drop has taken economists by surprise, according to the New Zealand Bank. 

Amid ‘near-perfect’ summers for Europe and the Americas, New Zealand dairymen are being warned of $6 to $6.25 per kilo of milk solids.

Such figures mean breaking even for twenty per cent of the industry at the high cost end, Federated Farmers dairy chairperson Andrew Hoggard warned this week.

Describing key rival countries as ‘having a blinder’ this year, he urged farmers to be conservative, in light of strong prices and lower feed costs driving production abroad.

European markets could also be in for a price plunge, hinging on the exposure of companies to the flux of the GDT.

A ten per cent drop in Whole Milk Powder values led the GDT decrease, due to ‘unseasonally high volumes’ of WMP entering the market over recent months, UK levy board DairyCo reported.

A large year on year production lift for the UK has allowed 14 per cent more milk utilised within manufacturing, a signal that liquid milk has limited options during times of strong output, DairyCo said.

Meanwhile, US output, up 1.5 per cent year on year in May, has been assisted by lower feed prices and more cows giving more milk.

Cow slaughter figures are 11 per cent down so far this year on 2013 and there are 50,000 head more dairy cows than in December.

Production in certain states has lifted more than others, inching higher in California, Idaho and New York but surging 10, 9.5 and seven per cent in Texas, Colorado and Kansas.

Market analysts are saying there will be little let up in milk supply as northern regions progress beyond peak output and southern regions gear up for winter.

Brazilian economists expect harvest to support a production lift in the next few weeks, while south eastern and central parts, currently very dry, require precipitation to avoid lower yields.

Average farmgate prices are reflecting strong dairy supply and faltering domestic consumption, dropping 0.73 per cent for the May/June period.

Looking forward, both Europe and Brazil look likely to export more as supply outstrips domestic demand.

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This Week's Articles and Analysis

Sense of Community Aids Establishment of Renewable Energy Cooperatives
The establishment of cooperative biogas projects is aided by strong community spirit, regional traditions and farmers' sense of responsibility for their local area, according to a new Italian study.

Control of Nuisance Algal Blooms in Ponds Used to Water Livestock
Algal blooms are best controlled by 'careful' use of herbicides and limiting the amount of nutrients entering the water,cattlemen in Georgia are being told.

More than Welfare Benefits: Meeting the Cow's Needs in the Maternity Pen
Natural tendencies to seek isolation before calving could be provided for by a new maternity pen hoping to improve cow welfare as a result.

What’s the Ideal Voluntary Waiting Period for Your Dairy Herd?
Changing voluntary waiting period (VWP) across the year can capture benefits of conception and estrus through the year, advises California extension agent Dr Alex Souza.

Market Reports

Irish CSO Reports: Agricultural Price Indices - May 2014
USDA National Dairy Products Sales Report - 16 July 2014
USDA Feed Outlook - 15 July 2014
USDA WASDE - 11 July 2014

Global Dairy Industry News

   New Zealand

New Zealand Dairy is 17 Billion Dollar Industry
Test Tube Milk Can’t Beat the Real Thing


Demand Drop Forces Farmer Milk Price Down
AveSui, Tecno Food Brazil Join Forces to Launch FIPPPA

   United Kingdom

Community Service and Fines for Owners Who Neglected Pregnant Horses and Cattle
MEPs Commit to Backing British Farming
Replace Reduce Refine – Way Forward for Antibiotic Use
Call for Better Data on Greenhouse Gas Emissions
Wynnstay Appoints Leading Dairy Farmer as Non-executive Director
Free Online Course Offered on Animal Welfare

   European Union

Copa-Cogeca Calls for Stronger Action to Combat Unfair Practices
EU Council Meeting Addresses Organic Farming Regulation
Dutch Farmers Sold For 8 Cents Under Cost of Production in 2013
EU Ag, Fisheries Committee to Discuss Organic Farming
EU Feed Production Slightly Higher in 2013

   United States

NFU Asks for Clarity on Key Points Under WOTUS Rule
Fight Heat Stress in Transition Barns and Beef Cattle
US Corn Prices Drop: Will Corn Creep Back into Feed Rations?
Public Meeting to be Held on Antibiotic Resistance Monitoring


Animal Feed Additives Market Expected to Reach $20 Billion by 2020
World Dairy Prices Slump Again
OECD and FAO See Lower Farm Prices
Top Ten Dairy Company Ranking Still Has Co-op Presence
What Could Climate Change Mean for Agriculture?


Nutreco Expands Calf and Beef Cattle Research
Integrated Approach Vital to Reduce Food Waste and Loss


Farm Children Have Fewer Allergies


German Farm Economics 'Significantly Worse' than March

   Czech Republic

Cereal Harvest To Be Lower For Czechs


India Raises Farm Credit to $133 bn during 2014-15
India to Launch TV Channel for Farmers Soon
Jharkand, Assam to get Agri Research Institute


Belgium's Veterinary Sector Reduces Antibiotic Use


New Partnership Could Deliver 160 million Litre Farm Hub


Coveney Launches Annual Review and Outlook for Agriculture, Food and The Marine
Irish Production Lifts Seven Per Cent


Moldova Accepts EU Veterinary Certificates


The Drost Project - A Visual Guide to Porcine, Pig Reproduction.
Sales Representative - Agricultural Industry
VIV Europe Digital 2014
VIV China 2014
EuroTier 2014



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