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TheDairySite Newsletter - 13 March 2015

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Friday 13th March 2015.
Michael Priestley - Editor

Michael Priestley

Novus International

MSD Animal Health

“Fear Leads to Slavery” is French Post-Quota Advice

A post-quota Europe needs fair contracts for its dairy farmers, expert insight on production and markets and an awareness of corporate integration taking hold.

This is according to the French Organisation of Milk Producers (OPL), which says the new dawn of quota limits means contract systems now determine production.

Such “contractualisation” is fine if contracts are balanced, but OPL President, Véronique Le Floc'h, says current obligations, constraints and lack of a minimum price make this “unacceptable”.

French dairy farmer Olivier Chemin was quoted by the European Milk Board (EMB) saying contracts are “definitely not getting better”.

“We are pressured into signing unfair contracts in which the producer has no rights,” he said. “Those who resist are threatened with an end to the collection of their milk at more or less short notice.”

In terms of farmer flexibility and contracts option, Mrs Le Floc’h said case law remains “rather vague”.

She said: “It is reasonable to expect the notice to be at least equal to one month for each year of supply. For example: 15 months’ notice for 15 years of supply from receipt of a registered letter.

“This allows time for reflection and discussion. Fear leads to slavery, do not accept just anything.”

Amid individual member state fears are wider concerns on market volatility, which are not unfounded, according to a new Rabobank report looking at EU dairy’s “new dawn”.

EMB President, Romuald Schaber, suggested times of market saturation should see penalties for farms producing more and bonuses for farms which can respond and produce less.

Expansion has already lifted production 12 million tonnes between the announcement of quota removal in 2006 and 2014. The report said this is a “large proportion” of additional capacity.

Production will become further concentrated in the heartland regions of northern and western Europe, where forage is typically plentiful, Rabobank added.

And while the strictures of land for forage and environmentalism are making production costs across key regions converge, Europeans must press for efficiency.

“Despite Europe continuing to have a conducive climate, continued effort will be required to ensure Europe is competitive at prices set by international markets”, explained Rabobank Analyst Kevin Bellamy.

The report predicted familiar dairy demand growth rates at a compound two per cent a year to 2020.

Rabobank said a competitive EU dairy sector needs funding, intensification and government support to compete.

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This Week's Articles and Analysis

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Drones a Possibility for Heat Detection and More
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USDA National Dairy Products Sales Report - 12 March 2015
Usage of milk by dairies in England & Wales – January 2015
USDA WASDE - March 2015
USDA GAIN: India Livestock and Products Semi-annual 2015
Dairy Australia - Market News - 6 March 2015
USDA United States and Canadian Cattle and Sheep - 6 March 2015

Global Dairy Industry News

   United States

Few Changes to USDA Crop Estimates
How Does Cattle Nutrition Impact BRD?
OIE and Centers for Disease Control and Prevention Reinforce Collaboration
US Milk Safe, Says FDA
McDonald’s to Source Milk from Non-rbST Treated Cows


Prices of Chinese Farm Produce Drop

   European Union

Three Year Stagger Announced on EU Super-Levy Payments

   United Kingdom

Native UK Breed Calf Numbers Growing
Reaping Benefits from Robotic Milking Systems
Is It Time We Embraced GM Crops?
Leading Dairy Event Offers Free Ticket for All Dairy Farms
Look to Catch Lungworm Early at Turn-Out
Is Your Farm Safe Enough?
NFU and Kennel Club Team Up to Keep Dogs and Livestock Safe


Reports of Growing African Foot and Mouth Problem


Strengthening the Direct Link Between Small-Scale Farmers and Public Institutions
Demand Pull Not Technology Push: Using Drones in Livestock Production
Food Price Index Dips to Lowest Level Since July 2010


Argentina Vaccinates 42million Cattle for FMD

   New Zealand

New Zealand Takes Zonal Approach on Theileria


Investment in On-farm Food Safety Projects


Dry Cow Feeding Can Beat Calf Diarrhoea


Report Underlines Australian Decline in Dairy Cattle Testing


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