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TheDairySite Newsletter - 30 Januray 2015

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Friday 30th January 2015.
Michael Priestley - Editor

Michael Priestley

Novus International

MSD Animal Health

Is Anyone Making Money From Milk?

Dairy farmers the world over are suffering from unsustainable farmgate prices.

In China this week, despite its well documented new taste for dairy, farmers have tipped milk down drains and fed it as pig swill.

Previously, farmers across many key export regions were buoyed by rising global dairy demand, resulting in the market being “flooded” with milk.

Production conditions, lower feed costs after consecutive good harvests and, in the case of the European Union, imminent milk quota abolition supported the increase.

Bullish outlooks on dairy demand have been the catalyst in the US too, where the positive fortunes of the dairy export market have contributed farms to get more milk out of more cows.

However, this month has seen many dairy farmers across the world sell up.

A year of extreme market volatility has proved too much for many farms, plunging the Global Dairy Trade Index to a five year low. China has stepped away from the market after imports rocketed in early 2014 to take imports for the year to 70 per cent.

Crisis talks have been held across Europe. Protests at discounting milk and actions to promote it have featured in Spain and the UK particularly.

In China, there are big regional variations, with prices “desperate” in some areas. Shandong and Hebei on the East Coast and rural Qinghai in central China are worst affected, according to the Chinese government news agency.

Farmers here enjoyed peak prices of 5.7 yuan (91 cents) per kilo in 2013, which have since almost halved to 3 yuan per kilo.

"At these levels, it is hard to keep the business running anymore," farmer Zhang Xuekai told the agency.

Once running an 800 strong dairy herd, Mrs Xuekai has sold most of her herd, leaving her milking 170 animals. A farmer involved in the same Yili cooperative now has 38, down from a herd of 73.

Feed costs are not helping. Daily spend on one farm amounts to 3,330 yuan, with the daily milk cheque earing 3,000 yuan.

News of price pressure also reached New Zealand farmers this week then the ANZ Bank New Zealand said prices would be “well below break-even for many dairy farmers.”

Those supplying Fonterra have seen farm gate payment forecasts crumble by over NZ$2 to NZ$4.70 per kilo of milk solids. Westland Milk Products has described its own price review, currently at NZ$5 as “unwelcome news for our shareholders, but not unexpected”.

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This Week's Articles and Analysis

Inconsistencies Found in Comparisons of Organic and Conventional Milk
Consumers perceive that organic cow milk differs from conventionally produced milk and that these differences justify the premium price for organic milk.

Cow Comfort: A Necessity Not an Option
Cow comfort is paramount in a productive and profitable dairy. What is needed for comfort, how to measure it and optimal management practices are laid out here for the asian dairy sector.

Leukosis Lowdown: Symptoms, Management, Test and Economics
Over 85 per cent of US dairy herds have a bovine leukaemia virus, but with proper management control and even eradication are possible, says University of Minnesota Extension.

Fire and the Farm: Preparing the Australian Way
Home to some of the most fire-prone farming country in the world, Australia is a place to learn from when looking at dealing a blaze.

Company News

Erich Erber Honoured by Receiving PhD From Kasetsart University
THAILAND - In a dignified ceremony graced by the presence of HRH Princess Chulabhorn, a total of 2,450 students of Kasetsart University (Bangkok) received their degrees on Thursday, January 8, 2015. Erich Erber, the founder of Biomin and Erber Group, was the sole recipient of the prestigious PhD hc from 2014.
Market Reports

Irish CSO Reports - Livestock Slaughterings - December 2014
UK Milk Prices and Composition of Milk – December 2014
USDA Cold Storage - 27 January 2015
USDA Milk Production - 26 January 2015
USDA Cattle on Feed - 26 January 2015
Dairy Australia - Market News - 26 January 2015
USDA Dairy Products Sales Report - 26 January 2015

Global Dairy Industry News


Sustainable Soy and Food Waste Drive Progress in Netherlands

   European Union

Campylobacter Cases in EU Stable – Listeria Rising


Feed Outlook: Arable Output to Break Records By 2018
Food Insecurity in Conflict Areas Must be Addressed
Malawi Floods Require Urgent Help
Do You Feel Well Informed about Conditions to Use Antibiotics on Farms?


Namibia's First Foot and Mouth Case For Six Years


Atypical BSE Case Confirmed in Norway

   New Zealand

Fonterra to Reduce Global Auction Offer Amid Dry Spell
Free BCS Assessments to Address Condition Problem
Farmers Call for Drought Declaration

   United Kingdom

Is Britain Drinking More Milk After Retailer Price Cuts?
Morrisons Signs New Milk Contracts with Dairy Crest and Arla Foods
Livestock Health Contracts Granted in Wales
Milk Race Returns to Sporting Calendar
General Improvement to UK Beef Price
Bull Genomic Predictors Proving Close to Mark
Employee Motivation Day Set to Build Success in Agriculture


Legume Varieties Surpisingly Drought Tolerant

   United States

Double Crop Baleage An “Economical Gem” in Georgia
Margin Protection: Who’s Opted In?
Issues Stemming from January USDA Reports


New Task Force to Improve Agriculture Risk Management Programmes


Spanish Farmer Outcry over Oil and Fertiliser 'Paradox'
Spain Must Change “Radically” or Face “Dairy Catastrophe”


Growth at Site Makes German Facility Arla's Biggest

   South Africa

Drought Triggers Insurance Payout in Sahel Ahead of Humanitarian Aid


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


Life Technologies
Biomin - The Natural Way
EBBE - European Board Of Bovine Experts
CID LINES - Innovative Hygiene Solutions


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The Pig, Poultry, Beef, Fish, Dairy, Meat, Cattle, Crop & Bioenergy Sites From 5M Publishing From 5M Publishing

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