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TheDairySite Newsletter - 05 January 2015

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Friday 9th January 2015.
Michael Priestley - Editor

Michael Priestley

Cheap Milk Becomes Pig Swill For China

Chinese dairies are marketing milk to pig farms or throwing it away in response to extreme price lows from milk buyers as overproduction plagues the market.

Dairy producers in north eastern Hebei province are fattening pigs and calves on milk usually destined for processing and culling cows to halt losses.

A very challenging winter could see farms go under, which according to a Chinese government news agency is a surprise given the level of dairy prices early last year.

Over production is to blame on market trends, says the agency. This has seen lower price revisions for European and Southern Hemisphere farmers.

European markets have been ‘flooded’ with milk, as US and New Zealand production has also surged.

Latest UK projections are that output will rise to a 20-year high for the 2014/15 milk year.

A DairyCo report expects deliveries to exceed 14 billion litres as deliveries remain 10 per cent above the five year average.

Also, stronger December production has been reported by Fonterra in New Zealand and Australia.

The effect has been felt on processor cash flow. UK cooperative First Milk has been forced to defer payments two weeks in light of cash restrictions.

The announcement was part of a business restructuring exercise to build a stronger platform after what it called a “year of volatility”.

Elsewhere in Europe, farmers are battling to stay afloat, with certain regional complications and quota abolition adding pressure.

This makes 2015 critical for the future of dairying in Spain, farm lobbyists told the EU parliament this week.

Danish producers state Arla’s flat rate and currency conversion complications are “unfair” for Danish producers, while Russia’s trade ban puts northern states and some cheese sectors in a tight spot.

Finnish and Baltic States farmers have come under particular stress since the August trade ban.

But, light could be at the end of the tunnel. A positive result was seen at this week’s Global Dairy Trade, which closed 3.6 per cent higher. All commodities firmed, particularly butter products, reported Fonterra.

Furthermore, it added that New Zealand may have its production reined in this year by drier weather and environmental burdens.

Impending irrigation strictures could limit South Island output, which, like the North Island, has seen improved growing conditions.

Rabobank’s December quarterly report suggested the market had reached a floor after a 50 per cent drop in world dairy commodity prices.

Eurotier Digital 2014

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This Week's Articles and Analysis

Looking at 'Cattle Culture': Home on the Brazilian Range
Much has been written about the impact of cattle farming in the Amazonian regions and how to increase efficiencies and profits, but a less studied field is that of the people and animals working there and the relationship therein.

Optimising Synchronisation: Getting Them Pregnant
Synchronising cows for artificial insemination (AI) has been commonplace for around twenty years, but how do farms ensure only those cows that need synchronising are the subject of such programmes?

What Effect Does Subclinical Ketosis Have On Reproduction?
An scientific overview paper has collated evidence quantifying the health implications of subclinical ketosis.

Esophageal Feeder: Calf Life Saver
Reasons for a calf not to suckle are many and varied, with even cold weather making calves less likely to nurse. A useful tool to have is an esophogeal feeder and Dr Michelle Arnold of the University of Kentucky explains why.

How to Limit Cross-Suckling in Calves
Monitoring cross-sucking is worthwhile due to its impact on mastitis, advises the Dairy Calf and Heifer Association.

Market Reports

USDA Dairy Products 6 January 2015
USDA National Dairy Products Sales Report 7 January 2015
USDA Agricultural Prices 30 December 2014
USDA National Dairy Products Sales Report 31 December 2014

Global Dairy Industry News


2015 Will Make or Break Spain’s Dairy Sector


Why Are Brazilian Milk Prices at a Four Year Low?
Brazil Appoints First Female Minister of Agriculture


China's Foot and Mouth Moves Across Country
China's Cheese Needs Here to Stay
How Western Companies Can Navigate China’s Animal Protein Market
Farmland Protection Needed in China
Chinese Food Prices Rise Slightly
Chinese Food Prices Rise Slightly


Food Price Index Declines in December 2014
Acquistion of Novartis Completed
Reducing Livestock Greenhouse Gas Emissions

   United Kingdom

How Can Agriculture Rise to Challenge of Climate Change?
First Milk Announces 'Stronger Platform' to Address Cash Restrictions
Industry Prospects in Focus at AHDB Outlook 2015
Changes to Common Agricultural Policy to Reduce Agricultural Red Tape
Badger Control to Continue in Battle against Bovine TB
Greenhouse Gas Calculator Wins Science Award
Muller Wiseman Announces Price Hold
Call for Country of Origin Labelling on UK Dairy Products
Increasing Productivity in British Farming through Research
Minister Sets Out Agriculture, Fishery Priorities for 2015
Knighthood for Former NFU President


Agriculture Commissioner Vows to Tackle Supply Chain Profit-Taking
Ireland's Minister Announces Payments to Participants in Discussion Programmes


See Biosecurity Like Insurance, Farmers Told
Dairy Growth to Support Indian Buffalo Exports
Drought Situation Improves for Much of Australia
Three New Australian Dairy Breeding Values
Toddler Death Sparks Milk Safety Calls
Care For Livestock During Hot Weather, Australians Told


Canadian Food Processing Industry in Critical Shortage of Workers

   New Zealand

Water Policy Making Impact on New Zealand Farms
Scientists Crack Swede Death Condition


India Awaits Russian Signature For Dairy Trade


Ukraine Clamps Down on Raw Milk and Back Yard Meat

   United States

New Vet Oversight Rules Will Affect More Than Half Antimicrobials Sold
Study Predicts No Farmers and Ranchers under 35 by 2033

   European Union

No Christmas Bluetongue Break for Serbia and Croatia
World Expo 2015 Event to Address Food Safety


Chile Sees First Live Cattle Exports Leave to China


Colombia Invests in Bovine TB-Free Certification


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



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