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TheDairySite Newsletter - 20 February 2015

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Friday 20th February 2015.
Michael Priestley - Editor

Michael Priestley

Novus International

MSD Animal Health

Supply and Demand Overriding Factor on Prices

Supermarkets have influence in trading terms but the critical factor in farmgate price is supply and demand, says a leading agricultural costing book.

Agricultural economist John Nix has said that retail prices are more affected by cost of production in terms of commodities in general, although acknowledges the argument that some farmers suggest they see an insufficient share of retail prices.

Responding to UK government figures for beef, milk, eggs and wheat from 1990 to 2013, Nix underlined the different levels of processing needed to get raw farm goods to the shelf.

“The value of wheat in a loaf of bread is only about 10 per cent of its total retail price,” said John Nix. “At the other end of the scale is beef where the farmer receives around 50 per cent of the total retail price.”

Milk and eggs have both secured around 30 per cent of retail values in recent years, well adrift of beef but ahead of wheat at ten per cent. 

Retail prices were front and centre for Spanish and UK dairy farmers this week when rallying the government and consumers respectively.

They pointed to retail prices often not being reflective of production costs.

Chris Dickinson, county adviser for the National Farmers Union told TheDairySite that world supply and demand issues are a fact of modern farming, but strong domestic demand can help producers.

VIDEO: Sheffield and Middlesbrough consumer engagement

For more farmer insight, click here.

The NFU has called for the whole supply chain to work together, in which farmers can play their part by being as efficient as possible and keeping tabs on production costs.

“Farmers have got to make sure their cost of production is right and if they can do that they can produce milk efficiently and for the right price, that’s important,” said Mr Dickinson.

“We then need to make sure the processors are paying a fair price.”

He praised supermarkets using the cost price plus models, which see farmgate prices sympathetic of production costs, and called for more of this work in the future.

Spanish retailers, however, have been hammered by producers this week who have named and shamed seven “fraudulent” retailers.

Spain’s Food Control and Information Agency (AICA) was told to expect notice relating to multiple retailer practices contravening food market laws.

Such measures include unsustainable pricing, using milk as “bait” to entice shoppers and promotional milk giveaways as meanwhile dairy farms across the country struggle to keep going.

VIV Asia 2015 Digital

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This Week's Articles and Analysis

Do Cows Need Beauty Rest Too?
Sleep may very well be important for cow health, early US research suggests.

Are You Underutilizing Grazing?
The nutritional content of your grass depends not just on quality, but how much each cow eats, writes a UK dairy adviser.

Spring Flush and Feeding for Early Lactation
Spring grazing is already being planned in Ireland, where researchers will be aiming for no less than eleven kilos grazed per day.

Has Cow Nutrition Changed Since the 1980's?
Prescribed forage formulae introduced to operations thirty years ago may need updating after years of advances in cow nutrition and forage analysis.

Company News

Biomin Web Site Now in Polish
POLAND - Biomin has launched a Polish version of its corporate web site.
Dr Travis Cigainero Joins Ceva Animal Health
US - Dr Travis Cigainero, has joined Ceva Animal Health as The Manager of Broiler Technical Services.
Market Reports

USDA Livestock, Dairy and Poultry Outlook - February 2015
Australian Rural Commodities Wrap - February 2015
USDA Feed Outlook - February 2015

Global Dairy Industry News


Nor-Feed Award Looking for Latest in Plant Based Products for Livestock


Commissioner Hogan to Address US Conference
What are Your Views on the Critical List of Antibiotics?
Have World Dairy Markets Turned a Corner?
Has the World Dairy Market Turned a Corner?
Three Supermarket Groups Head Animal Welfare Benchmark Table

   Cape Verde

Drought Hit Cape Verde Given Arable, Livestock Aid

   United Kingdom

How Do We Get Consumers Buying British Dairy Products?
Rivers Can be a Source of Antibiotic Resistance
Importance of Farming Highlighted Ahead of General Election
Bovine TB and Official Veterinary Work Contracts Confirmed for England
Key to Success in Developing Markets
Battle of Ethics and Price in Consumer Choice
UK Creates Food Enterprise Zones to Drive Growth


Ukraine Wheat Exports Pass Nine Million Tons

   United States

Center for Food Integrity CEO to Discuss ‘Big Food’
Novus Releases Video of Green Acres Research Farm
Opportunities and Barriers to Feeding the World’s Growing Population
Water a Limiting Factor to Corn Silage Quality
NFU Praises Introduction of Freedom to Export to Cuba Act


Stocking Boost for Colombian Region
2.5 Million Colombian Cattle to Be Traceable by 2016


Spanish Dairy Farmers to Hammer “Fraudulent” Retailers


Early Registration Deadline Ahead for Animal Welfare Conference
Bluetongue Claims Nine More Croatian Sheep

   New Zealand

Soil Inversion Could Be Worth 4 Tonne Per Hectare
Thistle Eating Beetle Highly Rated For Control
Government Offers Tax Relief for Drought-Affected Farmers
Mild Weather Could Explain Mystery Swede Deaths

   European Union

Strengthening Food Safety in Europe


The Drost Project - A Visual Guide to Porcine, Pig Reproduction.
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The 4th International Exhibition of ecological and organic products - EcoCityExpo 17-19 April 2015


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Life Technologies
EBBE - European Board Of Bovine Experts


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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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