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TheDairySite Newsletter - 12 September 2014

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Friday 12th September 2014.
Michael Priestley - Editor

Michael Priestley

European Dairy Giants Progressing in Africa

Europe’s dairy processing sector is looking to Africa for the latest investment opportunities in what is a continent with massive dairy potential.

Danish processor Arla joined FrieslandCampina (FC) and Danone this week by confirming a bid for Egyptian dairy company Arab Dairy.

This follows FC’s recent Ivory Coast acquisition of Olam International Limited’s dairy segment and two investments from Danone.

Danone’s foray into Africa has yielded a 49 per cent share of Ghanahan processor Fan Milk International and 40 per cent of Brookside, a Kenyan company with a ‘robust’ supply chain taking in Uganda and Tanzania.

Citing its ‘strong position’ in retail and food service segments, Arla said the 43,000 tonne processor fits Arla's market focus.

Previously, Arla developed a partnership with Ivorian logistics company Mata Holdings to facilitate distribution within Africa.

According to a recent market intelligence publication, Africa’s per capita dairy consumption is the world’s lowest.

This is according to Business Monitor International, a global analysis company part of the Fitch Group, which added: “We believe dairy companies will continue to pursue acquisitions in Africa, where we see strong dairy consumption growth potential.”

And while developments at the processor/retailer end of the sector continue, efforts to increase local production are beginning to take effect.

Under the slogan ‘a cow can change everything’, the East Africa Dairy Development programme is boosting milk yields and income of small scale farmers, lifting communities out of poverty.

Director Elizabeth Bintliff confirmed the need for milk.

“Milk is in high demand in East Africa and projections for Uganda see demand outstripping supply in recent years,” said Mrs Bintliff.

Through improving herd genetics and lifting farm output, the programme then aims to get farmers in touch with processors or develop better refrigeration plants.

They wish to improve the role of women in dairy and create more cohesion along the supply chain, added Mrs Bintliff.

This bottom-up approach has reached over 200,000 farmers in Uganda, Rwanada and Kenya with the subequent economic benefits leading to better healthcare and education.

This is additional to more expendable income and dietary improvements.

However, for some herders in Burkina Faso, the idea of farming is novel, German dairy farmers learned in May when African dairy representatives educated them on nomadic systems.

They heard that through basic improvements in feeding, yields can rocket from 1.5 litres a day to six or even ten litres. 

This is only true when feed can be grown, difficult for the nomadic Peul tribe which makes up 10 per cent of the population.

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This Week's Articles and Analysis

EBBE - Epidemiological Tools for Herd Diagnosis
The veterinarian working with dairy herd health needs a set of tools to describe dynamic changes in the herd efficiently and to estimate the relations between input and output with sufficient validity and precision.

What Should We Be Measuring in Soils?
Testing soil involves trying to answer more questions than ever now the science is expanding, says a feed and crops specialist in the US.

Contract Dairy Heifers for the Beef Sector
Dairy heifers will be seen on beef farms as Europe's dairy sector expands post quota removal contract heifer rearing grows, predict Irish advisors.

Tackle Scours: Chill Colostrum
Calves could see scouring problems reduce if colostrum is refrigerated close to 40 fahrenheit (4.4 degrees celcius), according to a calf management expert.

Market Reports

USDA GAIN: Brazil Livestock and Products Annual 2014
Usage of Milk by Dairies in England & Wales – July 2014
USDA National Dairy Products Sales Report - 10 September 2014

Global Dairy Industry News

   European Union

New EU Laws on Veterinary Medicines Planned
Europe Confirms Storage Aid on Cheese


Arla Bids for Share in North African Dairy

   United States

CME: 74 per Cent of US Corn Crop Rated Good/Excellent Condition
Farm Safety Should be a Front Burner Issue
Agri Groups Release 'Waters of the US' Mapping Tool
Major Obstacle Removed From Wisconsin Dairy Plans
COOL Reform Dubbed 'Trojan Horse' by NFU President

   United Kingdom

Freedom Food to Rebrand as RSPCA Assured
Will Scotland's Independence Vote Impact Agriculture?
Migrant Labour Supports Dairy Sector
Grass Mix Allows Cumbrians to Farm New Zealand Style
Regular Milk Defended After A2 Milk Study
UK Feed Prices on the Way Up Again?


FAO Food Price Index Drops to Four-year Low
How Can Companies Improve Animal Welfare?
Mature Cheddar in Sales Decline
Progress on Buyback Programme Nutreco Shares


India's Agriculture Developments Praised by FAO
India to Set Up Two Cattle Breeding Centers
India Reports Falling Livestock Numbers


Ukrainian Bovine Headcount Expected to Decrease


Has Turkey Halted Bluetongue While the Balkans Suffers?

   New Zealand

New Zealanders Request More Ag Science Funding


Teagasc Appoints Cattle Specialist for West, Midlands


Chinese Food Prices Rise


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