1. Weekly News

Belarus

Belarus to Modernize Dairy Farming with 450 New Complexes by 2027

By 2027, Belarus plans to build and modernize around 450 dairy complexes as part of a national initiative to transition the entire dairy industry to modern technologies. This announcement was made during a seminar on livestock breeding and dairy production outcomes for the first 10 months of 2024. Belarus continues to experience consistent growth in milk production, with a projected 8.5 million tons of milk to be produced in 2024. The average milk yield per cow increased by 291 kilograms (kg), reaching 5,198 kg, with the Brest region leading the country. Belarus operates approximately 3,000 dairy farms, 1,600 of which are high-tech facilities, and aims to expand this infrastructure further to enhance productivity.

Brazil

Importance of Animal Welfare Certification in Brazil's Dairy Industry

Brazil, the third-largest global milk producer, faces a growing demand for innovation and sustainability in its dairy sector. Animal welfare certification is becoming essential as the dairy industry produces over 34 billion liters (L) annually and generates nearly 4 million jobs. The Certified Humane Organization, a non-profit focused on the ethical treatment of farm animals, sets strict guidelines for dairy farming practices, covering aspects like nutrition, health, and the environment. Certified farms see improved efficiency, higher milk quality, and reduced animal stress, which also benefits workers. In tropical regions, managing heat stress is critical, with strategies like shading and cooling systems helping maintain animal well-being. Farms like Fazenda Terra Límpida in São Paulo, which adheres to Certified Humane standards, demonstrate the success of sustainable practices. As consumer expectations shift towards ethical practices, adopting animal welfare certification is vital for ensuring quality and competitiveness in the Brazilian dairy industry.

Colombia

Managing Subclinical Hypocalcemia in Colombian Grazing Dairy Cows

Subclinical hypocalcemia (SCH) is a significant issue for dairy cows globally, including those in grazing systems such as in Colombia. A study conducted from Jul-23 to Jan-24 on 136 Holstein and Holstein-cross cows from three farms in Antioquia found that 31% of cows experienced delayed or persistent SCH. Persistent SCH cows were more prone to diseases and had a higher risk of culling. In contrast, cows with transient SCH performed better, producing more milk without increased disease or culling risk. This study highlights that while grazing cows face unique challenges, managing calcium levels during transition is critical to avoiding performance losses. The results emphasize the importance of effective calcium management in diverse dairy systems to mitigate the risks associated with SCH.

India

India’s Milk Production Sees 4% Growth in 2023/24 Despite Decline in Buffalo Milk Output

India's milk production increased by nearly 4% in 2023/24, reaching 239.3 million metric tons (mmt), driven by improved productivity, although buffalo milk output dropped by 16%. This growth follows a slowdown in recent years, with the growth rate declining from over 6% annually in the past to around 3.8% in 2023/24. Despite this, India remains the world's largest milk producer, with a 10-year average growth rate of 6%, far exceeding the global average of 2%. The milk production from exotic/crossbred cattle rose by 8%, while indigenous cattle saw a remarkable increase of 44.76%. The top milk-producing states were Uttar Pradesh, Rajasthan, and Madhya Pradesh. Efforts to boost exports, improve livestock health, and encourage dairy cooperatives were emphasized, alongside the goal of eradicating diseases like foot-and-mouth by 2030.

Netherlands

Dairy Cow Numbers Decline in the Netherlands in 2024

The Netherlands' dairy cow population decreased by 1.9% in 2024 compared to the previous year, totaling 1.54 million as of Apr-24. The number of dairy farms also dropped by 2.6% to 13,900, while the average herd size per farm increased to 111 cows. Additionally, the number of young cattle for dairy farming fell by 2.5% to 967,000, reflecting broader shifts in the industry.

Poland

Emissions and Climate Concerns Impacting Dairy Farming Practices in Poland

Starting next year, Environmental, Social, and Governance (ESG) reporting will require dairy farmers in Poland to account for their carbon footprint and implement practices to reduce it. Highlighted during discussions at the National Agricultural Challenges conference, this shift means that dairy producers will face increasing pressure to adopt sustainable practices. Farms comprise 90% of the carbon footprint in dairy production. Farmers are encouraged to consider biogas plants to help reduce emissions. However, some experts warn that focusing solely on climate concerns may increase bureaucracy and harm the industry's competitiveness. Additionally, the potential benefits of dairy farming, such as using home-grown feed, which reduces the carbon footprint, are often overlooked in the climate debate.

Bluetongue Outbreak Confirmed in Southern Poland Cattle Farm

After three positive test results, a bluetongue outbreak was confirmed on November 22 at a cattle farm in Rajczyn, Southern Poland. The disease, spread by Culicoides midges, was likely worsened by recent flooding. While animals can infect each other through blood or semen, culling is not necessary unless the animals are unable to drink or eat. The disease poses no threat to humans, and animal-based products have no restrictions. Bluetongue is categorized under European Union (EU) legislation as non-mandatory for eradication, with symptoms potentially appearing 60 to 80 days post-infection.

Russia

Russia's Milk Production Increased in Nov-24

As of November 18, 2024, Russia's daily milk sales totaled 54.6 thousand tons, representing a 3.1% increase compared to the same period in 2023, according to the Ministry of Agriculture. The highest volumes of milk sales (over 2 thousand tons) were recorded in Tatarstan, Udmurtia, Krasnodar Krai, Voronezh, and Kirov regions. The average milk yield per cow per day rose to 21.5 kg, an increase of 0.97 kg from the previous year. Krasnodar, Stavropol Krais, Kursk, Kaluga, and Kaliningrad regions led with over 27 kg of milk per cow daily.

Milk Production in Russia's Nizhny Novgorod Region Shows Growth in 2024

In the first ten months of 2024, the Nizhny Novgorod region saw a 4.8% increase in milk production, reaching 490,900 tons, compared to the previous year. The average milk yield per cow in agricultural organizations was 7,763 kg, reflecting a 7.5% rise. The region's dairy herd, consisting of 169,000 cattle, including 73,300 cows, has contributed to the overall growth in milk production. This increase signals a positive trend in the region's dairy sector.

United Kingdom

Record Dairy Calf Registrations in Q3 Reflect Seasonal Shifts in the UK

Dairy calf births in the United Kingdom (UK) reached 458,473 in Q3-2024, a record high and a 3% year-on-year (YoY) increase. Despite this, year-to-date registrations rose by only 0.8%, with a modest 0.9% increase over the past 12 months, suggesting a slight herd expansion and reduced culling due to better prices. A notable shift toward Autumn block calving is evident, with registrations up 7.5% in Aug-24 and 1.2% in Sep-24, despite a 0.7% drop in Jul-24. These trends align with increased UK milk deliveries, influenced by improved weather and rising prices, although earlier poor weather and high feed costs had tempered milk yields in H1-2024.

United States

Key Developments and Challenges Shaping Beef Industry in 2024

In 2024, the United States (US) beef industry faced a dynamic year of record-high cattle prices due to historically low inventories and longer feedlot durations. This is coupled with challenges like highly pathogenic avian influenza (HPAI) outbreaks in dairy herds across 14 states, resulting in health concerns and financial losses. The implementation of e-ID tagging mandates marked a significant shift toward improved disease traceability. Meanwhile, declining feed costs, which are driven by solid corn and hay yields, offered relief to producers. However, natural disasters such as the Smokehouse Creek wildfire and Hurricane Helene inflicted severe agricultural damage, amounting to billions. The expiration of the 2018 Farm Bill highlighted legislative gridlock while export patterns shifted, with Japan reclaiming its position as the top market, even as overall exports dropped by 4%. Despite these hurdles, drought conditions improved in key regions, underscoring the industry's resilience in navigating environmental and economic challenges.

US Dairy Cull Cow Slaughter Drops to Lowest October Levels Since 2010

Despite high beef prices, a smaller dairy herd and increased demand for dairy cow replacements have reduced US dairy cull cow slaughter rates over the past year. According to the United States Department of Agriculture (USDA), Oct-24 saw 235,600 dairy cull cows marketed for slaughter, 7,300 fewer than in Oct-23 and the lowest October total since 2010. This marks the 61st consecutive week of lower dairy cow slaughter compared to the previous year. Nearly 430,000 fewer cows have been slaughtered from late 2023 through Oct-24. Despite sky-high beef prices, this slower culling pace has contributed to increased autumn milk production and herd numbers. The highest culling levels were reported in the Upper Midwest and Southwest regions.

Raw Milk Contamination Linked to Avian Flu Outbreak in California

The Center for Disease Control and Prevention (CDC) has officially confirmed a child's avian flu infection, tracing the source to raw milk from Raw Farm in Fresno, California. The family-owned farm, which produces raw milk and milk products from 750 to 1,000 cows, has removed the affected batch from store shelves. The CDC has warned about the risks of consuming raw milk, as avian flu can survive in it, though pasteurization effectively neutralizes the virus. This outbreak comes amid a significant crisis of avian influenza affecting milk producers in California, where 436 out of 1,100 farms have been infected since August, impacting nearly 1.7 million cows and causing concerns for both dairy production and public health.

2. Weekly Pricing

Weekly Powdered Milk Pricing Important Exporters (USD/kg)

Yearly Change in Powdered Milk Pricing Important Exporters (W48 2023 to W48 2024)

Germany

The decline in milk prices in Germany, which dropped to USD 2.56/kg in W48, represents a 35.19% decrease YoY. The price fell by 6.91% week-on-week (WoW), while it decreased by 23.81% month-on-month (MoM). This price drop can be attributed to several factors, including easing supply shortages as the market recovers from the extreme heat and disease outbreaks earlier in the year. However, the European dairy sector faces production efficiency challenges despite these improvements. These ongoing supply-side issues will likely contribute to continued price volatility in the upcoming weeks as the market balances recovery with persistent challenges.

Belgium

Milk prices in Belgium have been stable in recent weeks, with the price remaining unchanged at USD 3.92/kg in W48 compared to the previous week. There was a slight decrease of 0.76% MoM, while prices dropped by 4.62% YoY. The decline in YoY prices is more moderate than in some other European countries analyzed. Currently, supply in the Belgian market remains stable. Still, with supply and demand dynamics constrained and high milk supply in other European markets, prices in Belgium could rise as demand may shift towards their milk.

Netherlands

Milk prices in the Netherlands have consistently declined, falling to USD 2.19/kg in W48, a drop of 1.35% WoW, a 5.60% decrease MoM, and a 13.44% drop YoY. This price reduction is partly due to the easing of earlier price surges caused by severe disruptions in supply, including bluetongue virus outbreaks that impacted milk production and global supply challenges like the spread of highly pathogenic avian influenza (HPAI), which kept dairy prices elevated throughout 2024. The Dutch dairy market’s supply is recovering but is facing labor shortages, strict environmental regulations, and declining dairy cow numbers and farms. These factors, as well as tightening supply and rising demand, may lead to higher milk prices in the coming weeks.

France

In France, milk prices have dropped by 4.13% WoW and 3.87% MoM, following a price increase in the previous week due to tight supplies and market stabilization. This recent price decline reflects a return to more balanced conditions after the last surge. However, YoY prices have risen by 11.18%, primarily due to ongoing production challenges in the EU, such as bluetongue virus outbreaks and other disruptions earlier in the year. Additionally, increasing demand for French milk, particularly in export markets, has further strained supply. With supply remaining tight across the EU, prices are expected to stay elevated, with the potential for increases in the upcoming week if production issues persist or demand continues to grow.

Poland

Polish milk prices have significantly declined in recent weeks, with a WoW drop of 5.84%, a decrease of 20.66% MoM, and a YoY drop of 12.95%. This reduction can be attributed to better supply conditions following a period of price increases caused by supply constraints resulting from adverse weather and high temperatures. The market is now stabilizing as improved supply dynamics help ease the pressures that previously contributed to higher prices. While demand for Polish milk had previously driven prices up, the market is now transitioning toward equilibrium. Despite recent price drops, prices may rise due to upcoming ESG regulations requiring Polish dairy farmers to reduce emissions, potentially raising costs. Additionally, the bluetongue outbreak in Southern Poland could impact the milk supply. These factors suggest prices may increase soon.

3. Actionable Recommendations

Implement Sustainability Practices in Milk Production

Dairy producers should prioritize sustainability by adopting energy-efficient technologies, waste management solutions, and sustainable feed production. Farm-level carbon audits can help measure and reduce emissions while integrating renewable energy, such as biogas plants, will reduce emissions and cut operational costs. Focusing on the sustainable sourcing of animal feed and improving water management techniques will further contribute to minimizing environmental impacts and adapting to climate variability. These practices will enhance long-term sustainability and operational efficiency.

Increase Disease Testing and Control

Given the ongoing threats of avian flu and bluetongue disease, dairy farmers must invest in rigorous disease testing and control measures. Increasing investment in disease surveillance and early detection systems, particularly in high-risk regions, is essential for preventing outbreaks. Training farm personnel on biosecurity protocols and collaborating with veterinary institutions for regular health checks will ensure rapid response to potential threats, safeguarding livestock health and minimizing the risk of widespread infections.

Improve Milk Yield through Nutritional Management

Dairy farms, particularly in regions like Colombia, can enhance milk yield by addressing nutrient deficiencies, especially during transition. Managing calcium levels is crucial to preventing SCH, which negatively impacts milk production and overall cow health. To improve yield, farms should implement targeted nutritional programs focusing on calcium supplementation during critical stages such as calving, regularly monitor cows’ health for early signs of nutrient imbalances, and collaborate with agricultural extension services to adopt the most effective feeding strategies.

Sources: Tridge, AG Proud, AHDB, Agri Holland, Farmer PL, Milk News, Nieuwe Oogs, Portal do Agronegocio, Progressive Cattle, Spec Agro RU, The Print IN, TVP World