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TheDairySite Newsletter - 03 October 2014

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Friday 3rd October 2014.
Michael Priestley - Editor

Michael Priestley

Novus International

MSD Animal Health

Argentina Spared From Milk Price Cuts

The dairy price downturn has followed a trend of more milk and less demand across the major milk producing nations, except in Argentina where yields have fallen.

Argentinian farmers have suffered heavy rains this year, seeing milk production drop two per cent nationally.

Meanwhile, farmgate milk prices are 47 per cent above year ago levels, as Fonterra, Arla, Müller and others slash prices.

The US is another market where milk prices have shown resilience.

This contrast was highlighted by dairy market analysts this week at Rabobank, explaining higher price on economic turmoil.

They linked higher milk prices to high inflation - at 40 per cent - and a depreciating interest rate.

But production, which has recovered through late summer, could be spurred by an ‘extremely favourable’ milk to feed price ratio.

“We expect production to recover in the coming months,” Rabobank said in its quarterly dairy report.

However, this will only happen if conditions improve and local prices stay strong, Rabobank added.

The report, released this week, has been accompanied by signs of frustration among UK producer group Farmers for Action (FFA) which rallied farmers, threatening processors with blockades.

A summer of discontent has seen Fonterra revise its forecast pay-out and a stream of negative results on the Global Dairy Trade, compounded this week by lower prices on all products offered on Wednesday’s auction, including a ten per cent fall in Whole Milk Powder.

Farmer organisations have received criticism after bullish forecasts for global dairy growth have set dairies into a gearing up stage for producing more milk for an expanding world market.

In Europe, the advent of quota removal, set for next year, has resulted in Irish herd expansion.

Ireland joins Germany, the Netherlands, Poland, Denmark, Austria, Cyprus and Luxembourg this year in paying superlevies worth a combined €409 million for exceeding European Union quota.

Total European production finished 4.6 per cent below quota, whereas 2012/13 saw overproduction of six per cent.

Despite lower dairy prices, farm leaders have confirmed that milk consumption will grow at two per cent annually over the coming years, a figure reaffirmed by a leading food processor and packager this week.

Swedish company Tetra Pak pinned 1.8 per cent to the compound increase expected next year and in 2016 in its latest Dairy Index publication.

Greater still is the portion of milk to be traded.

Milk powder processing will grow by five per cent each year until 2020, Tetra Pak said, turning the powder sector from a €551 million to a €740 million industry.

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This Week's Articles and Analysis

Preparing For Winter and Seasonal Housing
Mathematics for this year's winter feeding start with cattle size. If you don't know how big they are how can you feed them correctly?

Is Replacing Starch With Non-Forage Fibre Sources During Heat Stress a Good Idea?
Feeding non-forage fibre sources during heat stress is not sufficiently replacing starch, claims a US expert.

Livestock Gross Margin Insurance: Another Safety Net For Dairymen
An Illinois economist has advised farmers getting to grips with the new Margin Protection Programme that the Livestock Gross Margin Insurance for Dairy Cattle also assists with risk.

Nutrition of Autumn-calving Dry Cows
Advisers at Teagasc offer timely advice for an autumn calving herd, foregrounding body condition score and mineral balance.

Could Rumination Data Help to Predict Dairy Cows' Calving Time in the Future?
One Australian expert is testing whether rumen monitoring can predict when a calf will arrive.

Company News

CID Lines Welcomes Visitors at World Dairy Expo
US - CID Lines is encouraging visitors to its booth - MC67 - at the World Dairy Expo in Madison, Wisconsin this week.
Market Reports

United Kingdom Milk Prices and Composition of Milk – August 2014
Irish CSO Reports -Milk Statistics - August 2014
USDA Dairy Products - 2 October 2014
USDA National Dairy Products Sales Report - 1 October 2014
USDA Agricultural Prices - 29 September 2014
Irish CSO Reports Crops and Livestock Survey June Provisional Estimates

Global Dairy Industry News


European Livestock Sector Collaborates on Sustainable Development


Better Livestock Breeding Ahead for German Farmers

   United States

CME: Shockingly Small Year End Soybean Stocks
Texas Hay Supplies Range from Surplus to 'Non-existent'
Food Animal Production Faces Challenges with New Antibiotic Regulations
Financial Boost for US Organic, Local Food Sectors
Website to Help Farmers Choose New Farm Bill Programmes
US Government Announces Funding for Grain Research


SPACE Offered Window on French Livestock Sector


Slight Rise in Chinese Food Prices


Andhra Pradesh to Form Farmers Corporation
Gujarat Fertilizers, EcoPhos JV to Set Up Animal Feed Plant


Advisers Address Austrian Barn Overcrowding Problem


China Unlikely to Be 'White Knight' For Dairy Prices
No Harm in Feeding Livestock GM Feed, Science Review Finds
Farming Must Adapt to Sustainable Farming
Time for Belts to Tighten


Calls for Transparency on Responsible Use of Antibiotics


Canada Urges Responsible Use of Antibiotics During Animal Health Week

   European Union

FAO Urges Europe to Support Sustainable Farming

   United Kingdom

Public Perception of UK Farming is Increasingly Positive
Leading Dairy Farmer Embraces Success
Farmers Given Winter Mycotoxin Warning
Extension to Dual Use Announced
Leaving Message from BVA President: Vets Must Build on Trust for the Future


More Romanian Bluetongue in Cattle, Sheep
Spate of Bluetongue Cases in Central Romania


Bluetongue Reaches Italian East Coast


Irish Herd Reflecting Beef Challenges and Dairy Optimism


Contagious Disease Behind Senegalese Cattle Deaths


The Drost Project - A Visual Guide to Porcine, Pig Reproduction.
VIV Europe Digital 2014
EuroTier 2014
VIV Asia 2015



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