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TheDairySite Newsletter - 29 August 2014

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Friday 29th August 2014.
Michael Priestley - Editor

Michael Priestley

Novus International

MSD Animal Health

Russian Ban Forces European Market Action

The European Commission responded to Russian import sanctions with Private Storage Aid (PSA) for butter, skimmed milk powder and certain cheeses after producer calls for market intervention intensified this week.

The decision will alleviate market pressure stemming from Russia’s considerable dairy imports being lost, the Commission explained yesterday.

This was accompanied with news of the public intervention period for butter and SMP being extended until the year end.

Farmers around Europe have welcomed the announcement, although stress it must be seen as the ‘first step’.

Market monitoring and support from non-Common Agricultural Policy (CAP) funded routes must follow, they insisted.

European farm body Copa-Cogeca led demands for action this week, following European Milk Board suggestions of a supply regulating instrument to curb production earlier this month.

They warned of rock bottom prices if action was not forthcoming.

Spanish and French groups described Russia’s effect on agricultural prices as ‘a crisis farmers have not caused but are paying for’.

This has worsened an already grim dairy market, according to Fredrik von Unge, a director at the Federation of the Swedish Farmers.

"It is good that the Commission has realized how serious the situation is for European dairy farmers,” said Mr von Unge.

“The milk market was weak even before the Russian import ban and the situation is serious.”

Mr von Unge joined others in urging agricultural ministers to aid the farming sector.

Financial assistance is being requested from Spanish unions, while Irish Farmers Association dairy chair Sean O’Leary said the Commission must look for other export destinations.

He added: “The Russian ban has clearly had a particular short term effect on market sentiment, buyer behaviour and therefore prices.

“However, Russian consumers will need supplies during their harsh autumn and winter months in particular, and buyers will start importing product from other parts of the world, which ought to help rebalance markets.”

He said that PSA was ‘helpful’ and called for a vigilant approach to be taken, while demanding that support funds must not come from the CAP.

The Commission rules on PSA dictate 90 to 120 days, which is to extend to certain protected cheese.

This is key for the UK dairy industry and allows time for the market to adapt, said DairyUK’s chief executive Dr Judith Bryans.

“Cheddar is one of the most widely internationally traded cheeses and its exclusion from PSA would be detrimental to the UK dairy industry. We will be lobbying the Commission to argue for such an extension.”

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This Week's Articles and Analysis

Scientists Uncover Why Major Cow Milk Allergen is Actually Allergenic
Cow milk allergy occurs in children and in adults. Scientists at Messerli Research Institute at the Vetmeduni Vienna, the Medical University of Vienna, and the University of Vienna investigated what actually makes the milk allergenic.

Organic and Conventional Dairies Show Few Differences in Cow Health and Milk
Oregon State University's Daniel Robison discusses how cows raised on organic and conventional dairy farms do not significantly differ in terms of health or in the nutritional content of their milk.

How Robust Livestock Tracking Leads to Increased Profitability
While a significant industry, Canada's cattle sector lacks the traceability seen in its pork supply chain. The worry, according to an industry figurehead, is that huge opportunities are being missed.

Silage Management: Steps to Tackle Shrinking
Minimise corn silage shrink by chopping finely, rapid filling and sealing securely, Karla Hernandez, forages specialist at South Dakota State University has advised.

Company News

State Veterinarians Discuss Key Health Threats at Annual WSLHA Meeting
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Market Reports

USDA Agricultural Prices - 28 August 2014
UK Milk Prices and Composition of Milk – July 2014
USDA National Dairy Products Sales Report - 27 August 2014
USDA Cattle on Feed - 22 August 2014
USDA Cold Storage - 22 August 2014
Dairy Australia - Fortnightly Update 22 August 2014

Global Dairy Industry News

   European Union

Cheddar Should Be in Private Storage Aid
Europeans Respond to Russian Dairy Ban
Macedonia and Romania Report Deepening Bluetongue Problem
Immediate EU Response Needed for Russian Exports Ban
Farmers in Outcry Over Prices After Russian Ban

   New Zealand

Fresh Cut Grass Makes New Zealand’s Goat Industry Unique
Fonterra Maintains $6 Forecast Price
Dairy Still Squeezing Sheep Sector


Suspected February Bluetongue Outbreak Confirmed in Botswana


Swaziland is Moving Towards Commercial Farming
Nestlé Steps up Commitment to Animal Welfare
Slight Relief From World Auction and Russian Rethink


Conflict Will Not Make Ukraine Hungry

   United Kingdom

Welsh Government Amends Definition of Moorland
Livestock Event 2015 Dates Announced


Chinese Farm Produce Prices Rise
Drought Kills Over 7,000 Cattle in North West China
Chinese Farm Produce Prices Rising


Parmalat Buys Brazilian Milk Processor

   United States

How Different are Conventional and Organic Dairies?
Looking for a Corn Consumption Response


Summer Mastitis Risk Highlighted

   Russian Federation

Russian Agricultural Watchdog Allows Dairy Imports from Serbia
Russia Adjusts List of Banned Agricultural, Fisheries Products


Dairy Farmers Go to Adelaide Cheese Maker
New Wagyu Seedstock Sale


Setting Up of Unauthorised Cattle Markets Prohibited


Over Half of Spanish Dairy Farmers Over Quota


Colombia's Cattle ID Plans Progressing


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