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TheDairySite Newsletter - 7 August 2015

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Friday 7th August 2015.
Michael Priestley - Editor

Michael Priestley

“Very Difficult” Season For New Zealanders Ahead

Pressure is piling on Kiwi dairy farmers going into the 2015/16 season in the shape of further drops in world dairy prices and the possibility of Fonterra's lowest farmgate price in thirteen years.

Tuesday’s Global Dairy Trade closed a further 9.3 per cent lower, closely followed by today’s Fonterra milk price of NZ$3.85 per kilogram of milk solids.

Fonterra’s announcement, expected to pull $2.5 billion out of rural economies, is the lowest price since 2002, although advisers have stressed that costs have risen by over $1/kgMS since then and that farms are in twice as much debt.

According to DairyNZ, the Waikato area stands to lose out on $692 million and Canterbury on $494 million.

The 2015/16 season will be “very difficult”, Fonterra chairman John Wilson said this week.

He blamed a continued imbalance in the global milk supplies for “unsustainably low” milk prices, which farmers around the world are “increasingly grappling".

The added complication of Russian trade restrictions, causing particular upset in Europe, has led to more dairy products being moved to intervention.

Agriculture Commissioner Phil Hogan extended Private Storage Aid for SMP and Butter, in a week seeing more supply chain disruption from protesting dairy farmers aggravated by processor price cuts.

The extension will run up to March 2016.

French farmer protests last month drove politicians to call on bank and supermarket cooperation. 

Low prices across pork and dairy sectors resulted in transport blockades last month, resulting in the government negotiating deals with French banks to restructure farm lending and debt interest.

Farm groups in New Zealand have also agreed “a few initiatives” with banks to support farmers if and when help is needed.

DairyNZ, Fonterra and Federated Farmers have met with banking representatives this week, in a bid to ensure sufficient support for facility conversions for sharemilkers.

DairyNZ said: “We need sharemilkers in our industry – they are our future – we have to wrap support around everybody working on farms”.

UK Dairy Farmers - Scientists Need You!

World leading cattle health experts at Edinburgh's Moredun Institute are urging farmers to take a wormer survey. take the survey here 

Striving to gauge industry attitudes to wormer (anthelmintic) resistance, the survey should take no longer than 20 minutes.

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This Week's Articles and Analysis

Market Reports

Dairy Australia - Market News - 7 August 2015
USDA National Dairy Products Sales Report - 6 August 2015
USDA 2014 United States Total Farm Production Expenditure Highlights
USDA Dairy Products - June 2015
Irish CSO Reports - 4 August 2015
UK July 2015 Farming and Food Brief
USDA Agricultural Prices - June 2015

Global Dairy Industry News

   New Zealand

Fonterra Reduces Milk Volume for Coming Season

   Czech Republic

Czechs Pressure Hogan to Solve Dairy Market Crisis

   United Kingdom

UK Farming Unions Call for Price Discussions with Ministers
Scottish Union Calls for Set Agricultural Wages Under General Law
Diverse Ways to Slow Wormer Resistance
Grim Forage Picture for Northerners
August Warning Issued for Cattle Parasites
Wormer Survey Needs Your Input
Survey Finds Animal Welfare Tops Consumers’ Ethical Concerns
Nettles Could Sting Rumen Acidosis


Wild Animals Spreading More Foot and Mouth in Botswanan Cattle
Botswanan Cattle Farm Hit by Latest Foot and Mouth Outbreak


Responsible Rodenticide Use Encouraged in Ireland

   United States

Livestock Experts Honoured at Animal Science Awards


Dutch Condemn French Farmer Protests


World Dairy Prices Slump 9.3 Per Cent
2015 Grain Harvest to Take Bronze
Emerging Markets Falter in Dairy Top 20
Producer-Buyer Contract Arrangements Aided by New FAO Legal Guide
How We Created and Can Address the ‘Super Rat’

   European Union

Europe Farmer Protests Spread West
Advanced Direct Payments Demanded for Struggling Dairy Farmers

   Russian Federation

Value of Trade between India, Russia to Treble


Conclusion Still Not Reached on Trans-Pacific Partnership


Germans Reduce Animal Antibiotic Use


China Signs Australian Health Protocol for Slaughter, Feeder Cattle


The Drost Project - A Visual Guide to Porcine, Pig Reproduction.
Antimicrobial Resistance
Biomin - Dairy Heifer: How to Get a Fast Start to Greater Lifetime Profit
US Sales Manager Wanted - 5m Publishing
Official Veterinarian Conference - Swindon, 22 - 23 October 2015 Book your place now



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