W46: Weekly Dairy Update
Milk
Germany: Hemp as Animal Feed Can Affect the Health of Cows and Their Milk
Commercial hemp is currently experiencing a revival due to its many applications. Commercial hemp varieties contain only small amounts of psychoactive (intoxicating) cannabinoids, which include Δ9-tetrahydrocannabinol (Δ9-THC). A team of researchers led by the German Federal Institute for Risk Assessment (BfR) has now investigated the consequences of feeding hemp silage to dairy cows. Silage is animal feed preserved by fermentation. The results of the study, published in the journal Nature Food, is that if the hemp silage contained a comparatively high concentration of cannabinoids, the animals' behaviour changed and their health was impaired. Breathing and heartbeat slowed down. The cows became sleepy, unsteady, ate less and gave less milk. The scientific study was designed to answer the question of how much is transferred into cow's milk when commercial hemp is fed. A high Δ9-THC content in cow's milk is not to be expected in Germany due to the legal framework conditions according to the current state of knowledge.
Research conducted in Holland has proven that there is a direct correlation between the volume of milk given to calves and their performance and metabolism. “The well-fed females in the lactation phase produce more milk and live longer than those who received food in a restrictive way”, explains Leonel Leal, a researcher at Trouw Nutrition. Eighty-six Holstein calves, divided into two groups, participated in the experiment. They received the same volume of colostrum, had free access to water and, from the fourth day onwards, initial concentrate and hay. The only difference was the volume of milk replacer given; while the control group received 4 liters per day, the LifeStart group received 8 liters. All calves were weaned at 56 days, explains the researcher in animal nutrition. The heifers submitted to the high feeding plan (LifeStart) had a higher average daily gain, with a 10.5 kg difference in weight at weaning. All were transferred to shared housing at 70 days and, when they reached a body weight of 390 kg, they were inseminated. After parturition, the animals were fed according to a diet strategically formulated for the experiment. The results show that cows distributed energy differently between body reserves and milk production.
France: Milk Leaders Targeted by an Investigation by the Competition Authority
The Competition Authority raided four major French milk players on Thursday, including the number one Lactalis , suspected of "having implemented anti-competitive practices" in the collection of cow's milk. The Authority announced on Friday that its investigation services had "proceeded yesterday [Thursday], after authorization from a judge of freedoms and detention, to unannounced visit and seizure operations with companies suspected of having put implementation of anti-competitive practices in the cow's milk supply sector". According to the aforementioned industrialist, the Competition Authority is looking into "a principle that has existed for decades, which consists of optimising the collection round". Dairies frequently collect milk from a nearby breeder even if he is under contract with a more distant competitor, who is responsible for paying him. The processors then reimburse each other.
Bulgaria: Forecasts for the Dairy Sector
By 2025, the number of dairy cows in the country is expected to decrease to 190 thousand heads. However, the decline in milk production will be more moderate due to growth in productivity, the Center for Economic Research in Agriculture (CAPA) predicted in its monthly newsletter. The decline in milk production is projected to be 12% for the period 2021-2025 compared to the previous five years. By the end of 2025, 780 thousand tons will be produced, analysts believe. According to a report by the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri, the decline in the EU dairy herd, combined with rising feed and fertiliser costs, is likely to lead to a permanent decrease in the production of cow's milk in the Union. Policy changes for higher environmental requirements for production will be another limiting factor, along with the consequences of Covid-19 and the war in Ukraine. Fluctuations in China's imports are another factor leading to uncertainty in global markets. Political changes around the world, associated with an increase in protectionism and subsidies for farmers in some countries, will be an obstacle to the globalisation of markets.
The supply and growth of milk in New Zealand and the European Union is limited and American dairy farmers have the cows and capacity to meet the growing world demand for cheese and other dairy products. At the opening of the US Dairy Export meeting, USDEC Vice President Alex Peterson praised members' efforts to increase US dairy exports ($7.8 billion in 2021) despite challenges including ongoing issues in the supply chain, inflation, protectionist governments, unfavourable exchange rates and slower than expected global economic growth. Two consecutive years in which records were set for US dairy exports may seem difficult to maintain. Still, 2022 exports are ahead of last year's pace. Since the start of the pandemic, the US share of global NFDM/SMP trade has increased from 29% to 39%; the share of the whey trade has increased from 35% to 41%, the proportion of cheese has increased from 18% to 22% and the proportion of butterfat has increased from 3% to 10%. Barb O'Brien, President and CEO of Dairy Management Inc., USDEC's parent organisation, commented, “By investing in innovation, strengthening our overall reputation internationally, and capitalising on new opportunities for dairy products in new and exciting global markets. emerging markets, we know that the US will become the supplier of choice”. One of the biggest advantages for the United States continues to be the country's milk production advantage. Despite high input costs around the world, the US is better positioned to sustainably increase milk volume compared to the EU and New Zealand.
US: Milk Futures With Cash Dairy Are Mostly Higher
The Global Dairy Trade index in New Zealand turned positive this week, up 2.4 percent, for the first time since the end of September. Gains were reported for skim and whole milk powder, both up 3.1 percent, and anhydrous milk fat, up 2.7 percent. Lactose led products lower, down 4.6 percent, followed by cheddar, down 1.3 percent.
UK: Cow Milk Remains the Most Value-For-Money
Dairy products have long been seen as a staple item and used as a loss-leader to tempt shoppers into supermarkets meaning the price of milk has historically been at artificially low levels, with prices barely moving at all. The average price of a litre of own label cow’s milk was £0.54 in the 12 weeks to 7 Oct 2018 and £0.55 in 12 weeks to 2 Oct 2021 according to Kantar. Milk has been cast as a low-margin, high volume heavily commoditized category. Cow’s milk remains a favourite in Britain’s households and alternatives are very different markets. Looking back over 12 weeks (to 4 Sep 2022) 95% households bought cow’s milk. This compares to only 13% households buying a private label alternative and 22% buying ANY alternative. Indeed, alternatives only make up less than 6% of volume of the total milk plus alternative market. Also, cow’s milk is one of the cheapest ways to ensure good nutrition, as a naturally good source of protein, calcium, iodine and vitamin B12. During a cost-of-living crisis it makes sense that consumers would look for the most “bang for their buck” and cow’s milk is unrivalled. At 23% cheaper than the alternatives (Kantar 12we 2 Oct 2021,) it is likely that consumers, excepting those with food allergies or specific dietary requirements, will continue to choose cow’s milk as a part of their diet. There is a likelihood that consumers will try to waste less and plan their milk consumption better so there may be some volume loss as a result.
The Turkish Statistical Institute announced the data on milk and dairy products production for September. Accordingly, the amount of cow's milk collected by commercial dairy enterprises, which was 799,135 tons in the previous month, decreased by 6.1 percent in September to 750,461 tons. The amount of cow's milk collected by commercial dairy enterprises decreased by 4.4 percent in September compared to the same month of the previous year. The amount in question decreased by 2.7 percent in the 9 months of the year compared to the January-September period of the previous year and decreased to 7,479,354 tons.
Turkey: Special Project From Ziraat to Cattle Producer
Ziraat Bank launched a project called "I Have Many Reasons to Live in My Village" for cattle breeding. Within the scope of the new project, which is the continuation of the project started in 2020 for small cattle breeding, long-term and low-interest agricultural loans up to 600 thousand TL will be offered to producers. According to the statement, loans will be extended up to the entire purchase price of the animal, and instalments will be provided for up to 84 months, with no principal payment for the first 18 months.
Ukraine: Consumer Inflation Accelerated to 26.6% In October
The official index of consumer prices for milk (State Stat) is growing more slowly and is 19.8 percentage points higher than in October last year (+19.4% in September). Wholesale prices of the fresh category in October was 11.5% higher than the corresponding period last year. The gap between wholesale prices and the cost of selling products (as well as the dynamics of their growth) in the last 6 months remains significant due to the increase in the price of logistics and retail services. A more indicative difference, or, more precisely, its absence in relation to the wholesale prices of the fresh category (milk, sour cream, cottage cheese group), is the dynamics of the cost of raw milk. The rate of growth of raw materials in October accelerated as expected, annual inflation is 10%. From this, the conclusion is that the increase in the price of raw materials and wholesale prices for dairy products went steadily last year, the main acceleration is recorded already at the stage of getting the products "on the shelf".
Brazil: Milk Imports Increased by 80.7% In October; Producer Price Fell 6.5%
Brazilian milk imports grew 80.7% in October compared to the same month of 2021, informs the November bulletin from the Milk Intelligence Center (CILeite) of Embrapa Gado de Leite. Foreign purchases of dairy products and increased production resulted in a 6.5% drop in the price of milk to producers last month, when the average price was R$ 2.85 per liter.
Chile: Dairy Export Growth Challenges Local Producers
Despite the increase in production costs experienced this year for the Chilean dairy, exports of products derived from the activity have increased in 2022 compared to 2021, 33.8% more, generating expectations for local agriculture. The main countries that lead Chilean dairy imports are Mexico, the United States, Colombia and the United Arab Emirates, although China is seen as a potential buyer in the future. From January to September of this year, 71,149 tons of dairy were exported, which in foreign currency meant more than 200 million dollars, while in the same period last year there were 59,201 tons, with a return of 148,122 million dollars, according to the data of the Office of Agrarian Studies and Policies (Odepa). The products that have been most exported in the recent period are condensed milk, followed by powdered milk and cheese.
Morocco: Protection of the Dairy Production in the Face of the Current Crisis
The government spokesman and Minister Delegate in charge of Relations with Parliament, Mustapha Baitas, spoke on November 10, 2022 on the decision of the authorities to ban the slaughter of dairy cows. According to MAP, the decision follows the observation of the shortage of milk supply and the need to prevent “the loss of the national herd”. Responding to questions from journalists after the weekly meeting of the Governing Council, Mr. Baitas explained that the abolition of the collection of import duties imposed on cows intended for slaughter should restore the balance recently lost and justify the increase in demand for red meats. In addition, the minister stressed that the government interventions in the meat and dairy sectors would help provide solutions to local market expectations. On Tuesday November 8, the Minister of Agriculture, Fisheries, Rural Development and Water and Forests, Mohamed Sadiki, explained that his department, in concert with the Ministry of the Interior, had agreed to ban the slaughter of dairy cows and to subsidise fodder.
Tanzania: Win for Dairy Production
Adopting high yield dairy cattle breeds and improving feed would allow Tanzania to increase milk production, while reducing planet warming greenhouse gas (GHG) emissions and alleviating poverty, a new study reveals. Tanzania has the second largest dairy herd in East Africa with 28 million cows. However, its dairy sector is poorly developed with mainly small-scale farms stocked with low-yielding breeds, using poor quality feeds. This, along with other supply chain problems around handling and refrigeration, results in poor productivity and the need to import processed dairy products leading to a $23 million trade deficit. The findings show that two key targets of Tanzanian government policy, becoming self-sufficient in milk and cutting GHG emissions by a third, can be achieved simultaneously while increasing income in farming communities.
Butter
US: Milk Futures With Cash Dairy Are Mostly Higher
Milk futures on the Chicago Mercantile Exchange ended higher Tuesday supported by positive cash trade and improving global markets where butter went up by $0.01 to $2.94.
Turkey: The Amount of Butter Production
In September, compared to the same month of the previous year, butter production increased by 12.8 percent, yoghurt production increased by 6.2 percent and drinking milk production increased by 1.7 percent. In the same period, ayran production decreased by 4.8 percent and cow cheese production decreased by 1.6 percent. In the January-September period, compared to the same period of the previous year, butter production decreased by 25.4 percent, ayran production by 11.1 percent, yoghurt production by 3.9 percent, cow cheese production by 5.1 percent and drinking milk production by 0.7 percent. Drinking milk production, which was 121,125 tons in the previous month, increased by 1.8 percent in September and was recorded as 123,294 tons.
Cheese
Turkey: There Is No Animal Left to Give Milk, Weight of Cheese Overtakes Red Meat
In recent months, the successive price hikes, the rise in inflation, the increase in the exchange rate, and the cost of living have bent the back of the citizens. In the market, the labels have changed from day to day due to the increase in the products. The price increase of the product on the shelves reached almost 175%. So much so that the kilo price of cheddar cheese exceeded red meat. As of today, 700 grams of cheddar cheese price on online shopping sites is between 115-165 TL on average, while the prices of ground beef and beef cubes are sold at 110-150 liras.
