W5: Weekly Dairy Update

Milk

New Zealand: Milk Production Remains Under Pressure (Jan 30)

For the full 2022-year, milk production, on a kilograms of milk solids (kg MS) basis was 3.5% (66.18K MT) lower than the year prior, and 3.8% (835K MT) lower on a tonnage basis. It is clear that milk production in NZ remains under pressure. This full-year production figure comes after the December production figure printed positively, at 0.6% (1.21K MT) higher than the year prior.. With the weather conditions through November rapidly shifting from a wet, cold and dreary spring to a warmer and wetter start to summer, there was little doubt that December’s production figures would easily challenge the season’s prior figure. However, a 0.6% gain is impressive, when taking into account how poorly the season started, the reported lower cow numbers on-farm in NZ, along with the ongoing negative pressure reported on farms from farmers.

France: The German Market Pulls Dairy Down (Feb 3)

There is the Egalim law, the VBF, the discourse of distributors and consumers in favor of French meat and on the other hand, there is the purse of housewives and the law of the market for processors or catering. While everyone is suffering from the rise in energy and raw materials, the differences in the valuation of dairy reforms between France and the other countries of the EU generate such a distortion of competition that French slaughterers are no longer able to sell the small volumes put on the market. Some brands no longer hesitate to communicate and promote EU meat under the guise of defending consumer purchasing power, even though they are committed to the VBF.

US: Dairy Policies Drive Small Farms to Get Big or Get Out as Monopolies Get Rich (Jan 31)

Two decades of misguided US dairy policies centered around boosting milk production and export markets have hurt family-scale farms and the environment while enriching agribusinesses and corporate lobbyists, new research has found. The average American dairy turned a profit only twice in the past two decades despite milk production rising by almost 40%, according to analysis by Food and Water Watch (FWW). More milk has not meant more profits for most farmers, or cheaper prices for American shoppers, because production costs have risen while milk prices have remained low so US exporters can compete on the global market. In the past 20 years, US dairy exports rose eightfold, more than almost any other commodity, which has coincided with rapid consolidation across the industry, according to the FWW report. The US Dairy Export Council (USDEC) claims booming exports have helped farms of all sizes, but two-thirds of family-sized commercial dairies were lost between about 1997 to 2017 as factory farms, exporters and a handful of powerful cooperatives came to dominate dairy. Trade association executives are making huge salaries as ordinary farms go under. Dairy monopolies are also bad news for the climate. 

US: Cattle Inventory Falls 3% (Feb 1)

The National Agricultural Statistics Service (NASS) reported the reduction of the United States cattle inventory on January 31, 2023. NASS surveyed approximately 35.4K operators across the country during the first half of January to get an accurate gauge of the current state of the US livestock industry. The survey asked producers to report their January 1, 2023 cattle inventories and full-year 2022 calf harvest via internet, mail, phone or in-person interview. Key findings from the survey results; of the inventory of 89.3M head (-3%), all the cows and heifers that have calved totaled 38.3M.

Spain: Number of Dairy Cattle Drops 8.2% In Five Years (Jan 31)

Dairy farming in Spain is experiencing an unprecedented structural crisis. The number of dairy cattle has been falling sharply for five years and, between January 2018 and January 2023, it was reduced by 70.44K heads, 8.2% less. The number of heifers, in turn, on the farms has been timidly recovering since 2021, but there are still 8.27K animals less than in 2018, when 285.90K heads were counted. Farms in Spain have suffered one of the biggest price crises in the last two years. The increase in production costs led the sector to choose between producing below its production costs or slaughtering animals to supply slaughterhouses which, unlike milk, saw their prices rise considerably. 

Russia: Milk Production Increased in the Kirov Region (Jan 30)

In 2022, agricultural organizations in the region produced 752K MT of milk, which is 2.4% more than in 2021. According to the Ministry of Agriculture of the Kirov Region, as of January 25, 2023, the daily gross milk yield in the region amounted to 2.15K MT, 66.6MT more than on the corresponding date in 2022. From one cow, on average, 23.7 kg of milk was received per day, 0.7 kg more than last year's level. The volume of milk sales as of the reporting date in the Kirov region amounted to 2.16K MT, exceeding the figure for 2022 by 61.5MT, from one cow received an average of 28.4 kg. The second place in terms of milk yield and the third place in terms of milk sales is occupied by the Orichevsky district, 175.4MT were received and 164.8MT were sold; in third place in terms of milk yield and second in terms of sales, the Zuevsky district, 171.8MT and 187.2MT, respectively.

China: Successfully Clone 3 Highly Productive Super Cows (Feb 2)

Chinese scientists have successfully cloned three "super cows" that can produce an unusually high amount of milk. It is a breakthrough for China's dairy industry to reduce its reliance on imported breeds. They were cloned from highly productive cows of the Holstein Friesian breed, originally from the Netherlands. The chosen animals are capable of producing 18MT of milk per year, 100MT of milk in their lifetime. That's nearly 1.7 times the amount of milk produced by the average cow in the United States in 2021, according to the US Department of Agriculture.

Canada: Investment in Dairy Cow Health (Feb 3)

The USD 749.07K (CAN$ 1M) investment from the Government of Canada will help the Association of Veterinarians of Quebec develop a digital tool to reduce the risks associated with metabolic diseases in dairy cows. The tool will help producers work more efficiently and reduce economic losses due to disease for both producers and processors. It will also help improve veterinarian intervention skills and strengthen working relationships between producers and processors.

Romania: How Many Dairy Cows Have Disappeared in the Last Couple of Years? (Feb 3)

According to data published in the National Strategic Plan (NSP), from 2010 to 2020, both dairy cow herds and total raw milk production in Romania decreased by 3.3% and 18.4% respectively. The annual milk consumption per capita has increased by 9.19% from 237 liters/capita to 259 liters/capita between 2015 and 2020, while total annual milk production has decreased by 7.54% over the same period. By granting subsidies as of 2023, the Ministry of Agriculture aims to maintain dairy cattle breeding activity at a certain level.

Kenya: Lifting of Import Ban on Dairy and Poultry Products From Uganda (Jan 31)

The Kenyan government has lifted a two year ban on dairy and poultry products from Uganda. This comes as Kenyan cabinet secretary for investment, trade and industry delivered a message from President William Ruto to Ugandan President Yoweri Museveni lifting the ban. This move will increase the value of Ugandan exports to Kenya which started to drop as dairy and poultry products are among the major exports, along with tea and coffee.