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TheDairySite Newsletter - 26 September 2014

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Friday 26th September 2014.
Michael Priestley - Editor

Michael Priestley

Time for Belts to Tighten

Dairy farmers around the world are currently in a belt-tightening phase as world dairy prices remain low.

Even with some relief from cereals and feed prices the picture is still grim, the National Farmers Union is telling English producers.

Within Europe, Russia’s import ban has shaken cheese and butter markets, while elsewhere processors blame good production conditions and a satisfied China on the supply and demand picture.

Post Russian-ban, European market intervention has removed 100,000 tonnes of cheese in private storage aid (PSA), over 80 per cent being Italian.

The aid was confirmed after lobbying from producer groups such as the European Dairy Association and Copa-Cogeca which warned of the consequences of oversupply.

Price cuts, some as high as three pence per litre in the UK, have been linked to lower price calls on the world market.

Last week, the Global Dairy Trade ended a five week slide when it closed unchanged, with Dairy Australia commenting, “no news was good news”.

Milk powders inched higher, although a 6.9 per cent drop in Butter Milk Powder was registered.

In New Zealand, Fonterra reacted to volatility by reviewing the farmgate milk price, shaving 70 cents off the 2014/15 season value.

Fonterra boss Theo Spierings said: “The forecast Farmgate Milk Price is reduced based on current estimates of future pricing.

“There remains significant volatility in international dairy commodity prices and given this, this forecast is our best judgment at this time.”

Most farmers will survive the year unscathed, but around 25 per cent have tough times ahead.

This is providing there is no drought this year, research and advisory group DairyNZ told farmers this week.

DairyNZ's message was that the most debt-burdened farms in New Zealand could struggle to meet farm costs and pay interest.

"We expect farmers to make a determined effort to control farm working expenses this season, with an average budgeted reduction in farm working expenses of around 40 cents per kg milk solids to $4 per kg MS,” said David McCall, general manager.

All told, Fonterra’s price cut mean a NZ$1 billion loss across its farmers, he added.

He added that profit making farms on $5 farmgate prices should be lessons to others.

Businesses achieve this through pasture performance and efficiency underpinning stable production.

This traditional low-cost farming approach, will continue to succeed in New Zealand, he added.

"We want all farmers to build strength into their businesses - rather than just hold the line in the hope we will be rescued by a milk price lift next season."

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This Week's Articles and Analysis

Old or New Trees For Cow Health and Lamb Survival
Sheep and Cattle both benefit from having trees around, whether in the form of new or restored woodland.

Youthful Approach to Keeping Dairy Records
Much can be learned from record keeping about managing farm animals and farm finances, hence there is lots to be gained from starting with the books early.

Johne's Detection First: Lymphatic Fluid Used
Lymph vessels near the udder provide a quicker test for standard Brucellosis screening, a team of Austrian researchers has found.

Forage and Management Part of Ethiopian Dairy Success
An Ethiopian dairy herd is now able to provide fresh milk for nearby restaurants and hotels following a helping hand in feeding and management.

Company News

Biomin's FUMzyme® Receives EU Positive Vote for Authorisation
EU - FUMzyme® from the well-established Mycofix® product line of BIOMIN, is slated to become the first-ever purified enzyme authorized by the EU as substances with proven mycotoxin counteracting properties.
Novus International Launches Web Site for Latin American Customers
LATIN AMERICA - Novus International has launched three new versions of its global web site for customers in Latin America.
Market Reports

USDA National Dairy Products Sales Report - 24 September 2014
Dairy Australia - Dairy Australia - Fortnightly Update 19 September 2014
USDA Cold Storage - 22 September 2014
USDA Cattle on Feed - 19 September 2014
USDA Milk Production - 19 September 2014

Global Dairy Industry News


Contagious Disease Behind Senegalese Cattle Deaths


Massey Ferguson Driven by Global Opportunities
New Approaches to Agriculture Needed to Cope with Climate Change
Rise in Asian Milk Collections

   European Union

Bluetongue Reports Continue Flooding in Across Balkans

   United States

Sustainable Manure Solution for New York Dairy
McDonald's: Beef Sustainability is Job #1, #2 and #3
CME: Production Costs Rising For Hogs, Cattle
US Launches National Strategy for Combating Antibiotic-Resistance
International Year of Family Farming 2014
National Farm Safety and Health Week Focuses on 'Protecting What Matters'

   United Kingdom

How to Feed Forage to Ensure Milk Yield and Quality This Winter
How Do We Tackle Food Production 'Complacency'?
Minimum Wage Increase for Agricultural Workers
Farmers Told to Be Competitive, Dairy Market Will Turn
British Vets Prefer British Meat and Fish
Can Farming Reverse its Ageing Trend?
Pirbright’s Centenary Conference Highlights: Advances in the Research of Virus Diseases of Livestock


Mycotoxins a Hot Topic at the Upcoming World Nutrition Forum 2014
More Land Fewer Harvests in Light of Climate Change


French Mega Dairy Proposal Meets Resistance

   New Zealand

Fonterra Drops Farm Milk Price
New Managing Director Announced for Moredun Scientific


Indian Agriculture Minister Calls for Canadian Investment


Funding Package Hopes to Specialise Colombian Milk
Colombians Making Progress With TB, Brucellosis


Zagreb to Host 2015 Animal Welfare Conference

   Bosnia and Herzegovina

Bluetongue Found in Imported Bosnia Cattle


What is A Long Calving Interval Costing You?


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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