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Tridge Analysis

W10: Weekly Dairy Update

Updated Mar 14, 2023
Tridge's global market analysts and country representatives take a deep dive into what happened during W10 in the global dairy landscape. In summary, ICMSA lamented the Irish government over the delay in the introduction of its new nitrate banding rules. AHDB study indicates that 17% of milking heifers exit the herd before calving down for a second time in the UK. Ukrainian January raw milk production and the number of cows as of February 1 have decreased by 12.6% and 13.5% compared to the same periods last year, respectively. Lastly, Indian and Brazilian governments partnered with the aim of training 6K Indians in the coming years on the genetic selection of dairy Gyr cattle that produce 28 liters of milk/head.

Ireland

ICMSA Bemoans the Lack of Clarity Over Irish Nitrogen Rules (Mar 9)

The president of the Irish Creamery Milk Suppliers Association (ICMSA) launched a scathing attack on the Irish government over the delay in the introduction of its new nitrate banding rules. Pat McCormack said that the lack of progress was ‘stunning’ and has called for the policy, which requires all dairy farmers to provide milk yield information for their herd to determine their nitrate banding, to be shelved.

United Kingdom

Heifers Failing to Reach Second Lactation (Mar 9)

Almost a fifth of milking heifers are failing to reach their second lactation, according to a recent AHDB study. The evaluation carried out through Reading University found that 17% of milking heifers exit the herd before calving down for a second time. Poor cow health and fertility contributed to the figures, however, the reasons varied from farm to farm. Responding to the study, Dr. Jenny Gibbons, AHDB senior animal health scientist, said the results were 'worrying'.

United States

Cow Culling Is Higher Than 2022 (Mar 7)

Culling cows appears to be a way for dairy farmers to deal with negative margins, allowing them to manage cash flows and pay bills, said Sarina Sharp, an analyst at the Daily Dairy Report. In the week ended January 28, dairy cow culls surpassed 68K head, one of the highest cull numbers ever in late January and comparable only to 2021 and the mid-1980s when the government offered herd purchases. Slaughter rates at the end of January were 7% higher than the comparable week in 2022. In the first 4 weeks of 2023, Sharp noted that nearly 273K dairy cows were culled, the most in over 35 years. Dairy cow culling in January 2023 was 600 head more than in 2021 when the US dairy cow herd stood at 9.45M head. That year, the herd was on track to become the largest herd in 25 years with more than 9.5M cows.

India

Rising Dairy Demand Drives Herd Expansion in India (Mar 8)

The expansion of India's dairy sector is driving the increase in herd numbers. Herd numbers have increased to 307.5M heads in 2023, compared to 306.7M heads in 2022. 

Ukraine

The Number of Cows in Ukraine Decreased by 13.5% During the Year (Mar 6)

In February, raw milk prices in Ukraine remained stable and in some regions, the price even increased. Falling prices on the EU milk market at the beginning of the year limited the demand for Ukrainian milk in this region, but domestic exporters were able to focus on other areas. The stabilization of world prices in February also improved the situation with demand in the domestic market, and most importantly, it has not yet provoked massive deliveries of dairy imports from the EU. The main factor behind strong prices for raw milk in Ukraine was the activity of cheesemakers, who kept both the primary and secondary markets of raw materials in good shape. In February, the purchase price of milk from rural enterprises was at an average level of USD 0.33/kg (UAH 12.0) without VAT. The raw material of the population was estimated at USD 0.22/kg on average. February became the seventh month in a row when the estimated margin of raw milk production decreased. According to State Statistics Service estimates, 456K MT of raw milk was produced in Ukraine in January, which is 12.6% less than in January last year. As of February 1, the number of cows in Ukraine was estimated at 1.3M, which is 13.5% lower than the corresponding date last year. The number of cows in agricultural enterprises amounted to 0.4M heads (-8.4%).

Uruguay

Milk Producers Run Into Debt and Face an Uncertain Future (Mar 7)

On Uruguayan dairy farms, the situation is increasingly complicated. With the increase in feed and forage prices, heifers, and cows that have started to calve, the lower milk production and higher indebtedness are due to the need for cows to eat to produce milk. Producers do not know what else to do and put their income at risk. In the traditional dairy basin, formed by Canelones, Florida, and San José, the rains were scarce, the oats that would form quick reserves for the autumn can no longer be planted and now it is necessary to think about planting ryegrass. The problem is that the soil lacks moisture for the planting to thrive. There were producers who wanted to return the oat seed they bought because they will not be able to plant it, but the return was not accepted.

Colombia

Both the Collection and the Price of Milk Rose in Córdoba and Sucre in 2022 (Mar 7)

On Uruguayan dairy farms, the situation is increasingly complicated. With the increase in feed and forage prices, heifers, and cows that have started to calve, the lower milk production and higher indebtedness are due to the need for cows to eat to produce milk. Producers do not know what else to do and put their income at risk. In the traditional dairy basin, formed by Canelones, Florida, and San José, the rains were scarce, the oats that would form quick reserves for the autumn can no longer be planted and now it is necessary to think about planting ryegrass. The problem is that the soil lacks moisture for the planting to thrive. Some producers wanted to return the oat seed they bought because they will not be able to plant it, but the return was not accepted.

Bulgaria

Livestock Breeders in Bulgaria Give a Maximum of 18 Months of Life to Native Dairy Production (Mar 10)

Bulgarian animal husbandry is at a complete impasse after the collapse in the purchase prices of milk and the subsequent bankruptcies. However, the control bodies continue to be inactive, and the market is full of rejected imported feed, which, due to the low prices, completely undermines the production of native animal breeders. And if the state does not take urgent protective actions against market distortions, the country will not have Bulgarian milk production within a year and a half at the latest. 

Brazil

Indians Visit Farm to Learn About the Genetics of Dairy Gir Cattle (Mar 6)

A farm in Lins, in the center-west of São Paulo, is receiving dairy farmers from India for training on the genetic selection of dairy Gyr cattle. This breed came from an Asian country and was improved in Brazil. Now, the Indian government wants to take back the genetically improved zebu cattle and in the future work on selection techniques there as well. The first group, made up of breeders and a translator, spent the week in the field for theoretical and practical training. Another part of the course is in the veterinary clinical analysis laboratory. The farm chosen for the exchange produces, on average, 28 liters of milk per head. This means productivity is four times higher than that recorded in India with the same breed of cattle. The representative of the Indian Ministry of Livestock and Dairy Products said that the intention is to improve the relationship with Brazil for commercial exchanges. The course offered by the government of India in partnership with the Brazilian farm should train 6K people in the coming years.

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