TheDairySite Newsletter - 20th January 2012

TheDairySite Weekly Newsletter

Friday 20th January 2012

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Welcome to this week's newsletter

Editorial: Lower Cost of Production to Improve Profit

Farmers should look more at the cost of milk production and its affect on profits, rather than complain about milk prices.

A new report by Dairy Co, in the UK, highlights the cost of production as the most significant factor for determining profit.

The right balance between input use and milk output (herd size and average yield) is essential. In particular the need for low yielding herds to maximise utilisation of grass through a simple system and for small herds to contain fixed costs.

Average yield per cow is not the main driver of profit. Higher yields are not the answer if they are produced at the expense of feed efficiency; every extra litre needs to be profitable.

The report encourages producers to fit the system they use to their own circumstances.

Acquisitions

UK's Robert Wiseman Dairies is to be sold to European company Müller for £279.5 million.

The Royal Association of British Dairy Farmers has welcomed the Muller-Robert Wiseman Dairies take over deal.

“We see the German processor’s investment decision as part of the much needed consolidation within the UK dairy processing sector and the fact it already operates a very modern business structure bodes well for the future,” comments RABDF’s chairman, David Cotton.

Swedish dairy firm, Skånemejerier, has said it is in talks with French dairy, Lactalis regarding a buy out.

Charlotte Johnston

This Week's Feature Articles

We have 4 new features this week:

Corn Silage Test Plot to Increase Profitability for Dairy Farmers and Reduce Winter Wind & Water Erosion
Can the use of a fall cover crop be incorporated after corn silage harvest to improve land and protect it from water and wind erosion while providing a usable feed source and what tools are available to evaluate important corn silage yield traits relevant to dairy producers, explores Jennifer Bentley from the ISU Extension at the Leopold Centre.

Understanding and Improving Dairy Fertility: Fertility & Reproduction
An overview of the latest understanding of the genetic regulation and physiology of important aspects of fertility from the final scientific report from the EU group, Sustainable Animal Breeding (SABRE) subtitled 'Cutting Edge Genomics for Sustainable Animal Breeding'.

Tools for Science and Selection: Numerical Genomics
Traits of economical importance can be identified through genomic analysis. An overview of the reasons for genomic analysis and software tool development from the final scientific report from the EU group, Sustainable Animal Breeding (SABRE) is presented in 'Cutting Edge Genomics for Sustainable Animal Breeding'.

Positive Outlook for Global Dairy
Fonterra foresees a positive outlook for global dairy markets. Long-term demand for dairy products is predicted to expand by 2-3 per cent per year. This year on year growth in demand is roughly equivalent to New Zealand’s total annual production of dairy products.

Company News

World Nutrition Forum 2012
SINGAPORE - Top international animal-health specialists and feed-industry experts will meet at the World Nutrition Forum 2012 to exchange knowledge on key trends in animal production and debate the major scientific, environment and leadership issues confronting the sector.

Successful Treatment of Gram-Negative Mastitis
US - Research from Cornell University, recently published in the Journal of Dairy Science,1 shows an 89 per cent cure rate of mild or moderate Escherichia coli mastitis infections — characterized by the cow not being sick or off feed but with visible signs of mastitis — when treated with extended intramammary antibiotic therapy.

Global Dairy Cattle Industry News