This week, that mediation is set for Thursday. If that doesn’t work, a one-month trial is set to start on November 15.

David Burstyner, a lawyer for the farmers, was asked for his opinion.

What’s most important to you? Before the state election, have your say.

His firm, Adley Burstyner, said on its website that the action was meant to get money for dairy farmers who supplied Fonterra in May and June 2016.

The class action is trying to get a judge to say that Fonterra’s step-down was illegal, including that it was misleading, deceptive, and unfair.

On June 17, 2020, the case was brought to the Supreme Court of Victoria.

The company said that court hearings have happened in 2020, as well as last year and this year.

“Orders were made for Fonterra to find documents on April 21, 2021. The date for mediation with Fonterra is October 13, and the trial is set to start on November 15,” the website said.

Fonterra has filed detailed witness statements from Matthew Watt, Judith Swales, Michael Cronin, and Mark Conway. The court ordered Fonterra to turn over 55,000 documents, such as New Zealand board minutes and internal communications about prices.

“The plaintiffs have turned in their witness statements and five expert reports from a world-class milk price expert, a forensic accountant, an expert industry consultant, an industry expert and leader, and a psychologist.”

Late in June of this year, The Standard said that farmers were worried that Fonterra was coming up with a new defence to weaken compensation claims from Australian suppliers who lost money because of the milk processor’s 2016 price clawback.

At a hearing on June 15, Fonterra asked for permission to change its defence to include a 40-cent payment made to farmers in 2017-18. It said that the payment should be counted as part of the controversial 2016 farmgate price clawback.

The class action claims that Fonterra broke its contract with a retroactive step down in May 2016 when it cut the expected milk payments.

Farmers had to pay back a big chunk of their income. In the same year, the NZ giant made $834 million in profit.

The clawback caused a serious cash flow problem and led to a class action lawsuit, which is backed by 300 farmers who say Fonterra misled and tricked them, acted unfairly, and broke contracts with dairy farmers.

Former suppliers said that the defence was “absolute rubbish” and that it was an attempt to lower the financial compensation claim for lost income in the past, which Mr. Burstyner said was expected to be “hundreds of millions of dollars.”

He said that the 40c payment wasn’t given to all farmers who lost money because of the step down because Fonterra wouldn’t give it to farmers who switched to other processors.

Mr. Burstyner said, “It seemed like a very spiteful thing to do.”

At the time, Matthew Watt, who was in charge of Fonterra Australia’s farm source, said, “This payment is for the 17-18 season, not the 15-16 season.”

Mr. Watt wrote on the dairy insider blog, “Even though the law doesn’t require it, we’re giving our suppliers an extra 40 cents because it’s the right thing to do.”

All Fonterra farmers who lost money because of the price drop in 2015–16 will be able to get this extra payment, whether they are still farming or are retired or coming back,” he wrote.

“We’re trying to get in touch with all the farmers who left us.”

The payment came at the same time as Murray Goulburn’s decision to forgive almost $150 million in debts owed by farmers. This was done after the Australian Competition and Consumer Commission sued the cooperative over the milk price mess in 2015-16.

A year ago, the managing director of Fonterra, René Dedoncker, said that the future of dairy in the south-west was safe and that the Cobden factory would be there “for the long run.”

About three years ago, Fonterra closed its plant in Dennington, which put 100 people out of work.

Fonterra said last month that it would no longer sell its Australian operations.

Fonterra was contacted for comment.

Milk is one of the most frequently requested items at food banks. But it’s one of the least likely to be donated because temperature requirements can make milk difficult to move and store. To help, Michigan dairy farmers have partnered with organizations, companies and each other to ensure milk and other dairy foods are available to all residents.

While farmers work to ensure dairy food availability year ‘round, these activities are especially highlighted this month. September is designated Hunger Action Month to spread the word about the hunger crisis in America and dedicate time to be part of the solution.

“Hunger doesn’t discriminate, and it affects every community,” says Cortney Freeland, United Dairy Industry of Michigan (UDIM) Director of Health and Wellness. “Historically, food banks relied on donated or near-date milk from rescue programs. Today, our food banks are purchasing dairy. They are committed to the value milk plays in the lives of the neighbors they serve.”

Fighting food insecurity

Michigan dairy farmers are making a difference.

“When families have to choose between buying food and paying bills, nutritious food often becomes a luxury they cannot afford. UDIM and Michigan dairy farmers have been dedicated partners, working alongside us to get families, and especially children, the fresh milk they want and need to thrive,” says Gerry Brisson, President and CEO of Gleaners Community Food Bank. “In the past year, we have been able to distribute 879,000 gallons of milk, a true demonstration of how through collaboration we can solve real challenges for our communities.”

For more than seven years, UDIM has made it a priority to work proactively with Michigan food banks on behalf of dairy farmers. The goal is to ensure these partners can not only provide dairy foods but also have the infrastructure to store and distribute fresh dairy.

These initiatives include:

• Growing relationships with the seven Feeding America food banks serving the state
• Creating retail programs encouraging grocery store customers to donate milk
• Providing nutrition education resources to food bank clients about the importance of dairy in their diet and how to use dairy
• Building UDIM’s food pantry grant program

Plus, for the past five years, UDIM has helped create infrastructure for the distribution of dairy products through food banks. Six of seven food banks in the state now have dedicated dairy trucks provided by Michigan dairy farmers as part of their fleet.

“Food banks play a critical role in ensuring young children to older adults have access to nutrient-rich foods like milk and other dairy products,” says Phil Knight, Executive Director of the Food Bank Council of Michigan. “Dairy farmers began a partnership with Feeding America in 2012 to ensure dairy products are available to nourish people in need. Our Feeding America network of food banks across the state are dedicated to ensuring milk is available for Michigan residents.”

Generosity in action

“Two years ago, as our farmers saw more need in their local communities due to the pandemic, we started a grant program to provide a dairy cooler and dairy foods to food pantries,” says Corby Werth, UDIM President and dairy farmer from Alpena, Mich. “It’s a great feeling to be a part of an industry that helps get nutrition to those who need it.”

To date, UDIM and Michigan dairy farmers have placed 61 coolers in local food pantries and provided 10 infrastructure grants and 25 dairy food grants to help our neighbors gain access to dairy foods.

The giving doesn’t stop at the farm gate.

• Busch’s Fresh Market in metro Detroit is in its sixth year of hosting a twice-annual milk drive at 16 retail locations. This past spring, customer donations at these stores helped purchase more than 46,000 gallons of milk for the local food bank. The store’s next drive will start at the end of September.
• Last summer, Spartan Nash hosted a milk drive across its entire Midwest footprint, which includes over 130 stores, and funded the purchase of more than 127,000 gallons of milk.

Ultimately, supporting the availability of nutritious dairy foods provides an immediate benefit to families in need while building a strong future for dairy sales in the years to come. Additionally, these initiatives help support Michigan dairy farm families through incremental milk sales.

“Our farmers work to ensure our neighbors have dairy at a time in their lives when they need it the most,” concludes Freeland. “By doing so, we are creating space in their fridge for milk and dairy foods. When people can move on from depending on food banks in their time of need, they will remember the vital role milk plays in their life by providing the full nutrition package. Offering our help now helps secure a spot for dairy in their grocery carts in the future.”

To learn more about the dairy checkoff or how you can be involved in promoting dairy in your community, go to milkmeansmore.org.

Cogent releases the first fertile, gender-sorted sperm in the world.

Cogent was the first breeding company to sell sexed sperm, and Ultraplus, the next generation of sexed sperm from Cogent and its parent company, STGenetics, was released at this year’s UK Dairy Day. Ultraplus increases the chance of getting pregnant by 3% more than the previous product, SexedULTRA 4M. This makes it the most fertile gender-sorted sperm on the market. When compared to the original XY sexed semen, this new product has led to a 14% increase in the number of babies born.

The DeLaval OptiDuo gets a new look from DeLaval.

In 2018, DeLaval showed off its new robotic feed pusher, called OptiDuo. The company has now updated the look of the equipment. DeLaval OptiDuo makes sure that cows can always get fresh feed. This makes cows come back to the feed fence more often. Its technology lets the feed be mixed up before it is put on the feeding table. All kinds of feed are moved back onto the feeding table by the auger, which has two spirals and an adaptive drive function. Since its release four years ago, more than 1,500 OptiDuos are now in use in Europe.
The 11th International Symposium on Reproduction in Ruminants is looking for abstracts.

Farmers will get together to talk about the benefits of monitoring dairy herds.

Allflex Livestock Intelligence is holding three farmer meetings in Devon and Cornwall to talk about the benefits of using its SenseHub system to monitor dairy cows 24/7 for heat activity and rumination patterns, and to learn more about how a herd monitoring system can improve the fertility, health, and overall performance of dairy herds. Intelligent neck collars and/or ear tags are used to track the animals’ subtle movements and patterns of behaviour. The meetings will be on October 20 and November 3 and 9.

The Holstein UK Premier Herd Award goes to a herd from Yorkshire.

The Holstein UK National Premier Herd Award for 2022 went to the Aireburn herd from Skipton, North Yorkshire. The award was given out on September 14 at UK Dairy Day. The award goes to the country’s best Holstein herd. The winner of each club’s herd competition goes up against the winners of neighbouring clubs to become one of the seven regional winners and finalists in the National Premier Herd Competition. In 1968, the Aireburn herd was set up. Over the years, there have been a number of sales on the farm, and in 2001, most of the herd died from FMD. However, 40 young heifers were kept, and they are the basis of the herd today.

Verity Ingham of Dairy Australia said that 22% of dairy farmers were unable to fill open jobs within three months, and that 40% of dairy farmers lost at least one worker.

Dairy Australia is starting a new national marketing campaign to promote the benefits of working in dairy farming and encourage Australians to look into a job in dairy. This will help to solve the problem.

Aussie rules legend Jonathan Brown is the campaign’s dairy ambassador, and seven dairy farmers also take part. The campaign shows why working in dairy matters by focusing on things that have been shown to make people want to work in dairy.

These include working with animals and being outside, moving up in your career, having a variety of tasks and getting training, having a secure job, and helping the community by making food that is very healthy.

The workforce attraction campaign started on September 24 and will be shown on TV, YouTube, radio, social media, and in local newspapers in dairying regions. It will encourage job seekers to visit dairyjobsmatter.com.au for more information and to find out where to look for jobs in their area.

Farmers will be told to take advantage of the fact that more people are interested in working on dairy farms and to find out how to attract and keep new workers.

Ms. Ingham said that the goal of the campaign was to get and keep people in the industry.

“There is a lot of competition for jobs in rural areas, so it’s important for dairy farmers to find good, reliable workers. “It’s just as important to keep them,” she said.

In dairy regions, Dairy Australia staff will also help people find jobs and connect farmers who need workers with job-seeker networks.

Dairy farmers can get more information by getting in touch with their local Dairy Australia team or going to https://www.dairyaustralia.com.au/people.

One of the major dairy industry groups in the nation, the Korea Dairy Beef Cattle Association was once MAFRA’s primary source of resistance in the ministry’s intentions to restructure the local dairy sector in order to improve self-sufficiency, an endeavour that has been continuing since 2021.

One of the MAFRA’s intended strategies is to lower the prices of milk sold by processed dairy brands, which is a strategy that the association strongly opposes. MAFRA wants to change the current supplier-friendly system that has caused local milk prices to be elevated for some time. This system is one of the factors that has caused local milk prices to be elevated.

Earlier this year, MAFRA made a formal announcement that it would no longer be engaging the association in any further talks about the system reform. The announcement came after a final effort to clarify how the sector revamp is intended to benefit the industry. The reason given for the decision was a ‘lack of trust’ on both sides.

It seems that MAFRA’s policy of using strong-arm tactics has finally had some results in the shape of a sit-down discussion to agree how to continue. The association replied with anger and fury; however, this had little effect.

“The heads of the dairy trade unions, industry groups, and dairy processing associations have now all agreed on the need to introduce a differential pricing system,” Minister of Agriculture and Food Resources Jeong Hwang-geun said in a formal statement. This system will affect the prices for both unprocessed milk and milk that has been processed.

“This is expected to be an improvement over the current system, which determines prices based solely on production costs without any regard for market conditions, and hopefully things will improve with the new system taking into account supply and demand conditions. “The current system determines prices based solely on production costs without any regard for market conditions.

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“The decision-making structure of the national Dairy Promotion Association has also been rationally reorganized. [One key change is that] decisions will now be made with a majority vote [as opposed to the previous] need to have agreement from two-thirds of directors present, so that various dairy issues can be widely discussed; and we are also looking to include the participation of more neutral persons such as consumers and academia on the board of directors. ” “The decision-making structure of the national Dairy Promotion Association has also been

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As part of this agreement, dairy firms have been strongly encouraged to initiate fresh pricing negotiations as quickly as is humanly practicable.
Is there going to be a conclusion to the dairy dispute?
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In spite of the fact that it had previously lashed out at the government for excluding it from discussions and referred to the new system as “irresponsible” and “shortsighted,” the Korea Dairy Beef Cattle Association has not made any negative remarks after this most recent meeting.

It was said in a separate statement that “the ultimate aim of both parties is the same,” and that “lowering the burden [of farmers] and boosting South Korea’s milk self-sufficiency” are the two goals that are most important.

Having said that, given the association’s staunch opposition to the reforms, which includes plans to protest at dairy companies that support them, it does seem a little strange that it is continuing with negotiations despite the fact that no concessions have been made – at least not in public. This is especially true given that the association has plans to protest at dairy firms that back the reforms.

It would seem that MAFRA is likewise committed to seeing the improvements through to completion. As a result, the number of votes required to pass decisions has been cut down, and more people from fields unrelated to the industry have been invited to participate.

It seems that a temporary halt to hostilities has been agreed upon; but, it is unknown how long this peace, which appears to be precarious, will be able to last.

Since November 1, 2018, California dairy farmers have been following a Federal Milk Marketing Order (FMMO). Geoff Vanden Heuvel, who is the Director of Regulatory and Economic Affairs for the California Milk Producers Council, looked into how the new federal order compares to the old state system from an economic point of view. Vanden Heuvel looked at 40 months of data and compared state and federal “All-Milk” prices. He found that California dairy farmers do better with the federal order than with the state order.
Dairy farmers in California

“The average price of a mailbox across the country during those 40 months was $17.99. California’s average price for milk in the mail was $17.93. “There was a difference of $.06,” Vanden Heuvel said. “I looked at the last 40 months of the state order, which was the same time period as the federal order, and found that the price difference between the California mailbox price and the federal mailbox price was $1.07. So, my conclusion is that the federal order has made California dairy farmers’ milk prices $1/cwt higher.

Producers will have different experiences depending on the month and whether or not they ship mostly to cheese plants or butter powder plants. But Vanden Heuvel says that “all things considered, it has been a good thing.”
FMMO COULD DO WITH SOME UPDATING

Even though the FMMO has helped California dairy farmers in many ways, there are still some parts of it that could be better. Vanden Heuvel said that the U.S. Department of Agriculture could use more power when it comes to studies on how things are processed. Under the state order, the California Department of Agriculture had the power to audit manufacturers to get accurate cost accounting for important conversion formulas. Vanden Heuvel says that the issue is “fairly important” to the way the FMMO is run as a whole.

“In the case of butter powder, we’re talking about a couple of dollars per hundredweight, and in the case of cheese, we’re talking about almost $3/cwt.” So, if that goes wrong, either the processor or the producer loses. In either case, it makes me wonder if that formula is correct,” Vanden Heuvel said. “If we’re going to keep a federal order program, which we think is good for farmers, it’s important that the USDA has the skills to run it in a trustworthy way over the long term. So, what’s missing is the ability to get a good estimate of how much it costs to make something.”

• Total group revenue: NZ$23.4 billion, up 11%;
• Normalized profit after tax: NZ$591 million, up 1%;
• Group total normalized EBIT: NZ$991 million, up 4%;
• Net debt: NZ$5.3 billion, up NZ$1 billion;
• Normalized earnings per share: 35 c/share, up 1 cent;
• Final farm gate milk price 2021/22: NZ$9.30 per kgDM;
• Milk collections: 1,478 million kgDM, down 4%; and
• FY23 outlook: 2022/23 forecast Farm gate milk price range of NZ$8.50 to NZ$10.00 per kgDM, with a midpoint of NZ$9.25 per kgDM. Forecast for 2022/23 normalized earnings guidance range of 45 to 60 cents per share.

“These results show that the co-op is able to deliver both a strong milk price and a strong financial performance in a challenging global operating environment,” Hurrell said.

When it released its results for FY21, the co-op said it was looking to sell its Australian operations because it was now in a phase where it was valuing its assets. Sorpole and Prolesur, which are in Chile, have also been put up for sale.

In Australia, Fonterra owns the Western Star Butter, Perfect Italiano, and Mainland Cheese brands, and it also has a license to make some Bega-branded products.

Even though there were reports of protests at the Soprole factory in Chile earlier this month, Hurrell said that the sale of the business was “moving forward.”

“After a year, the co-op is making real progress on our strategy, which is to focus on New Zealand milk and be a leader in sustainability, innovation, and dairy science.

“We’ve thought about a number of options for our Australian business, and we’ve decided that full ownership is best for the co-op.

“Australia is an important part of our consumer strategy because we have a lot of brands and products in common with them and that go well together. It is also where we send our New Zealand dairy solids.” Hurrell said, “The business is doing well and will be a key part of helping us reach our strategic goals for 2030.”

The main goal for 2030 is to give shareholders and unitholders a return of about $1 billion.

Total group revenue went up by $2.3 billion to $23.4 billion because prices went up, but sales volume went down because of short-term changes in demand and ongoing problems with shipping and supply.

Even though there were strong margins in the ingredients channel, the higher cost of milk in the restaurant and consumer channels caused the total gross margin to go down.

“A number of political and economic events also had an effect on our performance. For example, the devaluation of the rupee led to an unfavourable revaluation of NZ$80 million of the cooperative’s Sri Lankan trade debts.

“Our normalized profit after taxes was NZ$591 million, which was 1% more than last year because our profits were higher.

In its three regional markets, it had a “mixed performance”:

Normalized EBIT for Africa, Middle East, Europe, North Asia, and the Americas (AMENA) was NZ$527 million, which was a 57% increase. This was because the gross margin of its Ingredients channel got better.

Normalized EBIT for Asia Pacific (APAC) was NZ$237 million, which was down 22%. This was because better performance in the APAC ingredients channel was more than offset by weaker performance in the consumption and restoration channels.

Greater China’s Normalized EBIT was NZ$432 million, which was a 7% increase. It was partially offset by lower margins in food service chains and consumption, which were caused by the rising price of milk.

David Evans, the Managing Director of the Millbrook Dairy Company, says this. He thinks there is a growing gap between what UK buyers want to pay for cheese and what the world cheese market is willing to pay.

“It doesn’t take a genius to figure out that if cheese makers are offered more than £200 per tonne to export cheese, that’s where their cheese will go,” he said.

“Unfortunately, people who buy cheese in the UK’s biggest grocery stores don’t want to pay more for it. But buyers around the world are willing to pay, and the market is moving in that direction. We are importing less and exporting more, which is making it harder for the UK to meet its own needs.

He then said, “Right now, farming and the dairy industry are in one of the worst situations they have ever been in… And there doesn’t seem to be much hope at the end of a long tunnel.”

The sector is facing problems that start with the cost of production, which has gone up a lot in the last year.

“Everyone is being squeezed by the rising cost of living right now. “It’s the same in the dairy business,” said Evans.

“In the past, supply and demand were the most important factors. Farmers would work hard to get more money for their milk, which would push and encourage them to make more. But then, if production went up even more, there would be too much on the market, and the price would go back down.

“This time, no! Yes, farmers are getting paid more for milk—between 48p and 50p a litre compared to 30p a litre 12 months ago—but the cost of making milk is now at its highest level ever. Even though farmers are getting about 18p more per litre than they were a year ago, they are not better off. And because of this new thing, milk prices keep going up even though no more milk is being made. In fact, there is less milk than there was last year.

“The UK market didn’t expect buyers from around the world who saw the challenge ahead and were willing to pay more. Quite a bit more, as it turns out. Historic UK brands are shifting from selling in the UK to selling abroad, and who can blame them?

Millbrook Dairy thinks that if the UK wants to keep Cheddar cheese on its shelves, the retail buyers will have to pay more than world prices. This will stop a lot of people from selling their cheese abroad and get more people to sell in the UK.

The company, which is one of the most important exporters and importers of cheddar cheese in the UK, also brought up credit control as an unexpected problem in the supply chain. For businesses that sell cheese and buy cheese to put in other products, suddenly having to pay more than £115K for their usual load of 24mt of cheese means that many can no longer get the credit they need. It says that this will have an effect on popular pre-packaged goods as it keeps getting worse.

Evans came to this conclusion: “The market now has to think about other things. This summer has been one of the hottest on record, which means the D word. Extreme weather patterns in 2022 have caused a drought that has never happened before, and water has become very valuable.

“As we all know, drought affects the quality and quantity of crop and livestock food production at a time when prices are already through the roof. Most farmers have to feed their animals extra food because there isn’t enough grass, and the cost of this extra food is going up and up.

“No matter where we look, there’s a problem with supply. But on the other side of the coin, people always talk about how high prices are causing less demand. High dairy prices in the past have made less people want to buy it, but right now there is a problem with the supply around the world.

“Should the dairy industry start over? If only things were that simple. Consumers will see price hikes like they’ve never seen before, and if buyers don’t agree and step up to help fix the supply problems, shelves could be empty in a few months.

“One good thing is that maybe we’ll waste less if prices go up. We’ll have to see.”

Implications for NAM:

And not a word was said about plant-based.
Clearly, the government needs to give the dairy industry some serious thought…
Farmers aren’t able to think about how these unknowns will affect them in the medium and long term. This means that many farmers may change their plans, which could cause structural problems in the future.
Begs the question: What is the real plan for dairy in the UK?
So, going back to Implication 1…

We won’t know until Friday whether U.S. per-capita dairy consumption will climb for the eighth time in eight years, but preliminary data shows butter and cheese consumption set records in 2021. That’s not surprising.

Butter and cheese have been Old Reliables for a decade, with neither ever seeing consumption fall. Their increased popularity has countered reductions in fluid-milk consumption (an erroneous stereotype anti-dairy activists use to proclaim the industry’s “death”) and is a key component of the industry’s prosperity and bright future.

Dairy is evolving, from scientific discoveries to sustainability ideas. “More butter, please” and “bring on the butter” are constant refrains. The statistics demonstrates it, and those statements will resound for years to come.

In a recent letter to the government, Andrzej Gantner, the spokesman for the Polish Federation of Food Producers, said that the Polish government must act quickly to get back to making fertilizer and carbon dioxide so that dairy manufacturers and other parts of the food industry don’t lose a lot of money.

Prices for natural gas in Europe keep going up, which hurts the Polish chemical industry in a big way. Due to rising production costs, two big Polish chemical companies, Azoty and Anwil, have recently announced that they will stop making things. The price of gas in Europe is almost 10 times higher than it was a year ago.
Loss in the amount of milk made

Gantner said that this step put Polish dairy and beer companies in danger. He explained that carbon dioxide, which is a byproduct of making fertilizer, is needed to make a wide range of foods, like cheese.

“Without this gas, production will stop, and the losses will be unimaginable,” Gantner said, adding that this also affects the packaging part of the dairy industry. “It’s impossible to go from making things in a protective atmosphere to making things that are wrapped in paper all of a sudden,” said Gantner.

“Businesses are also being told that they don’t have enough nitric acid, which is needed to clean the production lines and make sure that food and production are safe,” he said, adding that this problem was also caused by the turmoil in the chemical industry.
Safety with food

Gantner said that the government was wrong to stop making fertilizer because they didn’t think about how that would affect the Polish food industry.

“The situation probably shows that the government doesn’t know much about food security in Poland,” said Gantner. He also said that food companies have few or no reserves of carbon dioxide and that it would take at least two weeks to get back to “some normal situation.”

“We want the prime minister and everyone else in charge of the current situation to know that it is not okay, no matter how the numbers work out from an economic point of view, to cause a shortage of raw materials, ingredients, and ways to make food,” Gantner said, suggesting that the production of fertilizers and carbon dioxide should start up again right away.

This is a gain of 25% compared to the previous year and a lead of €1,746 over the preliminary survey that will be released in June 2022.

According to Teagasc, the increase in FFI was caused by a number of factors, including generally reasonable growing conditions, increased milk production, and a sharp rise in milk price (to 40c/L by actual fat and protein). Specifically, the increase in FFI was driven by the combination of all three of these factors.
Earnings from the family farm

Despite the fact that farm profits hit all-time highs, this positive trend was hampered by rising input costs, which were caused by rises in the prices of feed, fertilizer, and gasoline in particular.

Notably, the total amount of money spent on bought concentrate in 2021 on a dairy farm with an average herd size of 92 cows was €45,790. This represents a 15% increase in comparison to the amount spent in 2020.

In addition to this, it was observed that the price of bulky or silage feed that was bought rose by an average of 4% in 2021.

The cost of fertilizer went increased dramatically in 2021, rising by an average of 8% over the previous year.

The results of the poll, on the other hand, indicate that farmers had relatively high amounts of fertilizer in store at the end of the year 2020, which they subsequently put to use in 2021.

The expenses associated with machinery hiring (contracting) climbed by 2% on average to a total of 13,204 euros, while the expenditures associated with other livestock and veterinary care also increased by 9% to a total of 14,163 euros for the typical dairy farm.
Production of milk

The rise in gross output in 2021 was on average 17% higher than in 2020, while the increase in the cost of production was on average 12% higher.

In 2021, milk output reached 12,155 L/ha, which was a 3% rise over the previous year’s total.

The high milk prices in 2021 contributed greatly to the large rise in gross production per hectare, which reached an average of €4,978.

Despite an 8% rise in direct costs in 2021, the average gross margin per hectare rose to €3,181 in that year.

Regional

When we consider dairy farms on a regional scale, we find that the bulk of them, 72 percent, are situated in the south.

The remaining sixteen percent are equally dispersed among the other two areas, with fourteen percent living in the north and west and fourteen percent in the east and midlands respectively.

However, the dairy farms that can be found in the east and the midlands are far greater in size than those that can be found in the south.

However, it is noteworthy to note that the southern area had the greatest dairy revenues, with an average income of €1,611 per hectare.

The average prices per hectare for the east and the midlands, as well as the north and the west, were respectively €1,410 and €1,394 correspondingly.
When compared to farms in the north and west, those in the east and the middle of the country had much higher direct expenses per hectare.

The direct expenses were on average just 1,135 euros per hectare in the south, making it the region with the lowest direct costs per cow.

In 2021, the amount of concentrate feed used per cow in the north and west was 1,444 kilograms, while the amount used in the east and midlands was 1,240 kilograms, and the amount used in the south was 1,072 kilograms.

The southern area had the highest average revenues per cow, coming in at a total of €1,611 on average for each cow. This is about €217/cow more than the price in the north and west area, which is over €201/cow higher than the price in the east and midlands region.

DeLaval, a Swedish company that makes dairy equipment, has started building a new dairy complex for 550 cows that will be “more modern and sustainable,” according to the company.

The new complex at DeLaval’s Hamra Farm in Sweden will cover 18,000 sqm and include new barns, 4 new DeLaval VMS V300 automatic milking robots, and other digital technology to improve the health, quality, and efficiency of the animals.

A focus on the welfare of animals

As well as being a commercial dairy farm, Hamra Farm has always been used as a test unit for the company’s latest innovations, with a big focus on animal welfare.

On the farm, there are about 250 cows that produce an average of 12,200 kg of milk per cow per year. With this new investment, they hope to increase the number of cows to 550, which is more than double the current number.

Hamra Farm’s managing director, Johan Bjurevall, says, “We’ve always put a lot of thought into our animals’ health and happiness. Part of our philosophy is that good animal care and planning for the long term usually lead to good yields.

“The investment has opened up a lot of new opportunities for us, and it’s great to be able to help plan and build a modern farm with a long-term focus.

“We’ve been planning and getting ready for the building for a long time. The new barns will house 550 dairy cows of the Swedish Red and White breed (SRB) and 500 young stock of the Holstein breed. We now have a good mix of these two breeds, which has worked well for us for a long time,” he said.

Hamra Farm is only 30 minutes from Stockholm. It takes care of 2,800 ha of land, of which 1,000 ha is arable land where winter wheat, barley, and corn are grown to feed the herd.

Over the years, many different pieces of DeLaval equipment have been tested on Hamra Farm, which also shows customers how to use the equipment.

Bjurevall says, “That makes our job so much more fun and exciting, but it also means we need to plan more for our building project.”

Even though the company hasn’t said how much the new complex will cost, DeLaval said that the investment will “continue the development of modern and sustainable milk production.”

Paul Lofgren, president and CEO of DeLaval, says, “At DeLaval, we really want to find new and innovative ways to make milk production more sustainable while putting a lot of attention on animal health.

“We can do this with the help of automatic solutions, more digital systems that, for example, give the farmer important information at the right time, and good animal knowledge and advice.

“When the rebuilding of Hamra Farm is done, we’ll see even more of that. It’s a big day for us, and we’re very happy and proud to finally be able to show off this amazing building. The first animals are supposed to move in at the start of 2024,” he said.

The total turnover climbed by 5% in euro terms. Top 20 merger and acquisition activity was reasonably constant in 2021 but fell in the first part of 2022.

According to Richard Scheper, Rabobank’s dairy analyst, dairy demand firmed internationally as a result of the rebound in foodservice channels after the first Covid-19 epidemic and continuing robust retail channel sales. “Dairy product prices surged to significant levels in 2021, owing to lower-than-expected milk production increases in the key exporting countries and extraordinarily strong Chinese import demand.”

According to Scheper, the movers and shakers characterize this year’s list. Both turnover increase and strategic actions were stronger than in previous years, creating a shift in the ranking. Strategic repositioning and mergers and acquisitions, for example, led in Froneri’s arrival and Kraft Heinz’s exit from the list.

The second half of the leader board is still congested, with little financial gap between the firms. In 2020, the gap between the eight corporations in the bottom half of the chart was less than $1 billion. This year, four firms had revenues of less than US $0.15 billion.

Dairy alternatives (from drinks, yogurts, frozen desserts, and cheese to hybrid items) are becoming increasingly prominent in the product portfolios of the Top 20, making it more difficult to extract pure dairy earnings. As a consequence, the definition of dairy is becoming more ambiguous.

The four worldwide cooperative behemoths are clustered towards the bottom of this year’s list. Each has some degree of constraint in their native market for organic development. Dairy Farmers of America continued to integrate Dean Foods businesses in 2021, while Fonterra and FrieslandCampina divested non-core assets.

Privately-held According to Rabobank’s newest Global Dairy Top 20 report, French dairy business Lactalis has reinforced its position as the world’s biggest dairy company.

According to the research, Lactilis’ sales increased to USD26.7 billion in 2021 (up USD4.7 billion or 16.2 percent from the previous year), putting it considerably ahead of second-placed Nestlé of Switzerland, which had turnover of USD21.3 billion over the same time.

Lactalis’ double-digit percentage sales growth, according to Rabobank senior agri analyst Emma Higgins, was driven by the acquisition of KraftHeinz’s US natural cheese business and Groupe Bel’s Royal Bel Leerdammer, Bel Italia, Bel Deutschland, and Bel Shostka Ukraine, with these purchases adding a combined estimated annual turnover of about USD2.1 billion.

“With the recent acquisitions of Australian-based Jalna Dairy Foods and German-based Bayerische Milchindustrie’s (BMI) Fresh Dairy Division, this acquisition frenzy has extended until 2022,” she added.

Danone (France) surpassed Dairy Farmers of America (US) to take third position on the list (turnover of USD20.9 billion) (USD19.3 bln). Yili (China) stayed sixth despite acquiring Infant Milk Formula company Ausnutria, which helped boost its 2021 revenue to USD18.2 billion, up from USD13.8 billion the previous year.

Ms Higgins said that New Zealand’s Fonterra took sixth place on the list for the third year in a row, with 2021 sales of USD14.8 billion, up USD1.2 billion from the previous year.

“Fonterra completed the sale of its two wholly-owned China agricultural centres in 2021.” “The sale of DPA Brazil and Soprole, as well as future adjustments in the Australian-based firm, are still on the table,” she stated.

“Despite the sales of its Chinese hubs, wider China, notably foodservice sales, remains a significant market for Fonterra, as do other nations in the Asia Pacific area.”

“Fonterra’s annual results for the fiscal year 2022 will be released next month.”

More dairy firms are integrating their climate goals with the campaign Science Based Targets (SBTi). To far, eight of the top twenty corporations have publicly committed to (some of) the SBTi aims or have targets that are deemed linked with SBTi.

Rabobank anticipates that this figure will rise in the near future as examination and goal setting continue. Dairy firms are focusing on climate and environmental goals for 2030, as well as net-zero goals for 2050.
Another good year for dairy sales.

Rabobank also predicts that the combined Global Dairy Top 20 turnover will be high again next year, as underlying dairy commodity prices reach record or near-record levels throughout the world as a result of the Ukraine conflict and growing inflation.

“However, decreased global dairy consumption is expected in the second half of 2022 owing to a mix of Covid-related lockdowns, inflation affecting consumers’ spending power, and other economic headwinds,” says Scheper. Some corporations may struggle to preserve their positions and advances in this year’s list due to the weakness of local currencies, particularly the euro versus the US dollar.”

In court proceedings initiated by the ACCC, the Federal Court ruled Lactalis Australia Pty Ltd (Lactalis) violated the Dairy Code of Conduct by failing to satisfy several of its responsibilities in respect to the 2020-21 milk season.

The Code went into effect in 2020 in order to address systemic transparency difficulties as well as negotiating power inequalities between dairy producers and processors.

“This is a significant case for the ACCC because these are the first proceedings we have initiated under the Dairy Code of Conduct,” ACCC Deputy Chair Mick Keogh said. “The judgement represents a victory for dairy farmers who normally have little negotiating leverage in their interactions with much bigger processors.”

Lactalis violated the Code when it failed to post its milk supply agreements on its website by the Code’s deadline of 2 p.m. on June 1, 2020, instead requiring dairy farmers to sign up via a web portal to receive them by email.

The Court also determined that Lactalis violated the Code by posting and entering into agreements that permitted them to terminate the agreement unilaterally in situations that did not constitute a significant breach. Lactalis, in instance, was given the authority to cancel the agreement unilaterally if the farmer, in their perspective, participated in “public denigration” of processors, major customers, or other stakeholders.

The Court, however, rejected the ACCC’s claim that Lactalis failed to publish true non-exclusive milk supply agreements by asking farmers to deliver a minimum of 90% of their monthly milk output, which the ACCC said would prevent most farmers from selling milk to another processor. The Court determined that Lactalis’ later publishing of this agreement satisfied the Code’s provision for non-exclusive agreement dissemination.

The Court also determined that Lactalis did not fail to fulfill the Code’s “single document” requirement, which is meant to give farmers with confidence about the nature of their agreement by providing a single source of farmers’ responsibilities.

“Farmers must have timely access to information when choose which processor to deliver milk to,” Mr Keogh added.

“Within failing to disclose its milk supply agreements by the date required by the Code, Lactalis made it more difficult for farmers to compare milk pricing and contract conditions among various processors.”

“This case should serve as a warning to all dairy processors that failure to comply with the Code may result in ACCC enforcement action, including court proceedings,” Mr Keogh said.

A hearing on relief, including fines, will take place later.

Background

Lactalis is one of Australia’s major dairy processors, buying milk from over 400 dairy farmers around the country. The firm manufactures a broad variety of dairy products under several trademarks such as Pauls, Oak, Vaalia, and Ice Break.

On January 1, 2020, the Dairy Code (the Competition and Consumer (Industry Codes—Dairy) Regulations 2019) went into force. It is a necessary industry code that governs how farmers and milk processors interact with one another.

A processor is required under the Dairy Code to post one or more standard form milk supply agreements on its website by 2:00pm on June 1st of each year, as well as a statement outlining the conditions under which the processor would engage into the agreement.

Every exclusive milk supply agreement that a processor advertises must provide a non-exclusive supply alternative for farmers.

The Dairy Code requires processors to buy milk solely via milk supply agreements. All agreements must be code compliant by satisfying a number of fundamental standards, including:

specifying a minimum price paid for milk; being a single document; specifying quality and quantity requirements, including testing procedures; and specifying the circumstances under which parties may unilaterally terminate the milk supply agreement – for processors to unilaterally terminate, the circumstances outlined must involve a’material breach’ by the farmer.

The Dairy Code’s disclosure requirements apply to all processors with an annual aggregated turnover of $10 million or more in the preceding fiscal year.

The August Milk Production report highlighted the industry’s significant increase last month. According to the most recent USDA data, milk output in the United States is up 1.6% from August 2021. Nonetheless, cow numbers decreased by 11,000 head from the previous year, but rose by 8,000 head from July 2022.

According to the research, Texas led the way in year-over-year increase, increasing by 30,000 head from August 2021. South Dakota’s favourable cow growth trend continues, with an increase of 22,000 head. Iowa and Georgia also witnessed gains, with 13,000 and 11,000 more people added, respectively. The states with the greatest decrease in cow numbers were New Mexico and Michigan, which were down 24,000 and 15,000 head, respectively.

Phil Plourd, Ever.head Ag’s of market intelligence, said that the results exceeded his expectations.

“However, we were comparing against a rather poor result last year,” Plourd notes. “For example, cattle numbers fell 45,000 head between July and August last year, explaining how we narrowed the year-over-year disparity to barely 11,000 head in August.”

Plourd believes there is a fair likelihood that cow numbers will rise beyond year-ago levels when the next USDA data is released, considering we lost 33,000 cows from August to September last year.

“I believe it’s also fair to say that California had good weather for the most of August this year, which wasn’t the case last year,” he said. “The opposite was true in Wisconsin, where temperatures rose somewhat last month.”

Plourd claims that the figures had a significantly negative slant.

“We predict respectable growth in September, but not big rises anytime soon,” he adds.

The August milk production report showed that monthly output in the United States and major dairy states was up 34 pounds per cow year over year.

Michael Oosten at his family’s dairy farm in Lakeview, an unincorporated area of Riverside County. (Luis Sinco/Los Angeles Times)

After moving to California in the 1920s, the grandparents of Michael Oosten started their own dairy farm in Paramount in 1945 before shifting to larger farms in Artesia and Bellflower. The grandparents were Dutch dairy farmers.

They relocated their farm to Chino in the early 1970s, but in 2001 they made the decision to sell it to a trucking firm adjacent to an Amazon warehouse that had been constructed on the site of two previous dairy farms.

Dairy farming has decreased in California since the industry’s high in 2008, according to Oosten, who has operated Marvo Holsteins for 18 years. Marvo Holsteins is a dairy farm in the unincorporated community of Lakeview in Riverside County that provides milk to Land O’Lakes. The industry has suffered from declining real estate in Southern California, more affordable land in other states, stringent permitting procedures, a lack of water and other natural resources, and more expensive land in other states.

According to Oosten, the main reason why farmers leave their home states is economics. The cost of feed is cheaper and the regulatory environment is better in other states, where milk prices are often highly competitive.

He said that real estate in particular has had a big impact on the decision of more dairies to leave California.
Michael Oosten strolls through barren terrain while standing beside a corral with cows.

“Developers would come in and acquire the property and turn it into houses or commercial structures,” he added, “when urban sprawl pushed in and got near to the farm.” “That is the development of what has occurred in the dairy business in California. Many individuals have begun to relocate out of state more lately, during the last 20 years.

According to Michael Boccadoro, executive director of sustainability organization Dairy Cares, there are only around 1,200 dairies remaining in California, a considerable decrease from the 2,100 farms there were in 2001 and the 20,000 farms there were in 1950. One of these dairies is Marvo Holsteins.

Although there are now 94% less dairies in the state than there were 70 years ago, producers have been able to make up the difference by producing more milk and improving cow comfort and breeding, according to Boccadoro.

It’s “a nonstarter” to establish more dairies or increase output in California, he said. “It’s been six or seven years since we constructed a new dairy. Simply said, it’s not an ideal location to start a milk manufacturing firm.

According to Boccadoro, the number of dairy cows in the state has decreased from 1.88 million in 2008 to 1.72 million now, or by around 160,000 cows in 14 years. Every year, the number of cows in the state drops by between 0.5% and 1%.

Dairy cows are being sent to areas like Texas, South Dakota, Arizona, New Mexico, Idaho, and Kansas that are not normally recognized for their dairy production in instead of remaining in California. According to Boccadoro, milk production has been moved to the Midwestern states as a result of a decline in the demand for fluid milk and a rise in the demand for cheese, yogurt, butter, whey protein, and other milk-related products. Since the pandemic started in 2020, demand for dairy products has grown by 2000%.
After being milked, cows at the dairy farm owned by Marvo Holsteins go through a cooling shower.

There was a lot of milk production on the West Coast and the East Coast historically because cows needed to be near to the market since it was a fresh milk market and milk has a limited shelf life of around two weeks, according to him. The extended shelf lives of the new products are causing milk production in the dairy industry to shift to the country’s centre regions.

Cows have being pushed out of California due to closer proximity to new industrial facilities. The Hilmar Cheese Co. has a factory in Texas and is now building a cheese and whey production facility in Kansas. Another significant dairy production business, Leprino Foods, said last autumn that it was constructing a new plant in Lubbock, Texas.

The prospect of climate change rules and their potential consequences is another major concern dairy producers have.

The Short-Lived Climate Pollutant Reduction Act of 2016, or SB 1383, was approved by the California legislature and established a 2030 target to cut methane emissions from the dairy and cattle sectors by 40% below 2013 levels, or around 9 million metric tons of carbon dioxide. The California Air Resources Board may begin enforcing measures to curb emissions if it deems in 2024 that the dairy sector is not on pace to meet its goal.

According to Oosten, future laws may call for dairies to construct anaerobic digesters, which regulate the breakdown of waste and turn methane into clean energy, as well as the use of feed additives to lessen the amount of methane that cows belch forth.

There is a concern in California that if mandates and rules are implemented, we will begin to lose financing for incentive programs, our alternatives, and farms, he added. Some of them may cease operations, which would be a disgrace for that family. The second thing that will happen is that they will pack up, depart, and go outside of the state. The ‘leakage,’ as we discussed, still occurs even if they are not subject to the [mandates] over there.

More dairy farmers remaining in California would benefit the state from a global climate viewpoint, according to Anja Raudabaugh, CEO of Western United Dairies, a trade association that represents the bulk of milk produced in California.

She said that since California exports gas to other regions, processing and manufacturing—which was the state’s cash source for producing eco-friendly goods—are now departing the state. It was intended to be a reward system, but if we don’t produce them in California, they will undoubtedly be produced somewhere.

The Inland Valley Daily Bulletin reported in August on worries from the dairy business over the air regulations.

However, David Clegern, a spokesman for the California Air Resources Board, said that because no environmental laws are even permitted to be submitted for approval until 2024, they have no effect on the migration of cows from California.

There could be more of a market push there since cattle prices are really high right now and increased significantly this summer, according to Clegerns.

According to Clegern, staff members are in the early phases of creating a rule on methane emissions via consultation with neighbourhood residents and working groups.

He added, “We won’t start until we have a real regulation. “The public procedures, legislation, and other regulatory testing take a few years to complete. We need to confirm that it won’t conflict with federal rules, that it makes sense scientifically, and that it can be accomplished in a practical and affordable manner.

The Coalition for Clean Air’s Bill Magavern, director of policy, stressed the significance of lowering methane, a short-lived climate pollutant with an atmospheric half-life of 12 years and an 80-fold greater warming impact than carbon dioxide.

“These massive factory farm operations have significant local environmental implications in addition to the climate change impact, including the methane itself that leads to smog, which is currently far beyond permissible levels in the San Joaquin Valley,” he said. California’s dairy sector is located in the South Coast Air Basin and the San Joaquin Valley Air District, which have the worst air quality in the nation.

Magavern doubted that possible laws would drive cows out of the state.

He spoke to dairy farms, saying, “I have seen them lobby over the past 20 years and resist any legislation that would get them to lessen the pollution they’re releasing in California.” They are putting up a fight against everything, and the fact that they are now whining about not even being regulated is telling.
a close-up of cow legs and the udders of a cow being milked by a machine.

The dairy and cattle industry, which is responsible for more than half of the state’s methane emissions, has decreased its yearly emissions by slightly over half, according to a study by the California Air Resources Board published this spring. To attain the 2030 target, dairy producers will need to keep altering their waste management practices, reduce the number of their cows, and use digesters.

However, not everyone loves the dairy digesters. According to Genevieve Amsalem, the Central California Environmental Justice Network’s head of research and policy, dairy farms are responsible for 50% of the San Joaquin Valley’s particulate matter pollution. She said that the digesters are producing ammonia, which harms the environment and the general public’s health.

By putting in a dairy digester, she said, “you’re using state money to institutionalize this activity and make it law.” The fact that the state is institutionalizing these environmental disasters raises serious concerns.

Oosten stated his farms use less water since they put their cows outdoors and that he is in negotiations with digester businesses about installing them despite the digesters’ high cost (it costs roughly $6 million to construct one at a 2,000-cow farm). The state’s Dairy Digester Research & Development Program pays a part of the cost of a digester while dairy producers pay the remaining balance as one of the incentives for lowering methane emissions.

According to Oosten, despite the consolidation of his family’s farms over the years, his farms sell between 30% and 35% of their milking herd, which consists of roughly 2,500 cows, for beef each year.

He said, “We’re not expelling animals from the state merely to get rid of them. It is centred on economics and is implemented in areas where dairies are most lucrative.

Australia’s dairy sector is suffering from a production shortage, which might lead to higher milk prices.

Wet weather, growing production costs, labour problems, and farmer migration are blamed for price increases.

Rabobank’s Senior Analyst of Dairy and Consumer Foods Michael Harvey said Australia’s output declined by 350 million litres.

Recent rains have given better fields and full dams to agricultural areas, says Rabobank’s Michael Harvey.

Flooding in Queensland and NSW caused milk losses, while seasonal circumstances were unfavourable in Tasmania and Victoria, he added.

This affects feed quality and availability.

Mr. Harvey said labour shortages and farm departures hurt the sector.

‘That’s why output is falling,’ he remarked.

I expect rising food costs, including higher dairy prices across most categories.

High-price drivers are still in play. High expenses of manufacturing, packaging, and delivery.

Production concerns are predicted to raise the prices of butter, cheese, and yoghurt.

Mr. Harvey said prices are rising across all categories and regions.

Rabobank’s Senior Analyst of Dairy and Consumer Foods Michael Harvey said Daily Mail Australia’s output is down 350 million litres.

Milk and cheese prices are rising globally.

Australian dairy farms face labour shortages. Some senior farm owners desire to quit for lifestyle reasons.

And cattle compete for resources and money.

Shaughn Morgan of eastAUSmilk said dairy farmers were under a lot of pressure and had no option.

Many dairy farmers and their families are giving up, he added.

Bianca Woodford operates a dairy west of Brisbane and raised prices to compensate for expenses.

She believed buyers would comprehend price hikes.

‘We keep raising prices to support our company,’ she told ABC News.

Australia’s cost of living crisis has forced households to pay exorbitant prices for groceries, petrol, and electricity.

Australia’s cost of living issue has caused consumers to pay more for food, fuel, and power, and now milk.

According to the Australian Bureau of Statistics’ July report, the price of vegetables, fruit, morning cereals, bread, eggs, oils, butter, and margarines has risen considerably in the previous year.

Vegetable prices rose 7.3% nationally and considerably more in certain cities.

Darwin’s vegetable costs rose 9%, while Sydney and Melbourne’s rose 7.7%.

Fruit and vegetables rose 7.3% from June 2021 to June 2022.

Coffee, tea, juice, and soft drinks rose 7.9%.

Dairy farmer advocate Shaughn Morgan from eastAUSmilk stated employees had no option.

The increased costs you pay at the grocery store do not help the producer. Prairie View Dairy in Muleshoe is an example of this.

Labor is one of the highest expenditures, despite the fact that the owner, James Hancock, claims he hasn’t lost many staff.

“But whatever roles we’ve lost, we haven’t been able to find successors for that have lasted very long, because they’re constantly off looking for something new,” Hancock added.

Hancock claims that boosting salaries on his farm is difficult, but no one has lately inquired about a position. Hancock now spends $19 to produce 100 pounds of milk, which sells for $21. He claims that the market is expected to decline to $17 per 100 pounds, implying that he would earn less.

Feed prices are another explanation for the high input costs.

“Not a lot of additional feed in the region that we could get a hold of, particularly with the weather,” Hancock added.

Furthermore, getting the stream is difficult.

“You can’t get the semis to come through, there are a lot of missing drivers out there, and you can’t get enough people to carry the feed to you,” Hancock said. “So, all of it adds up to a larger price for us whenever it arrives.”

Hancock claims he had to sell 400 cows last year, reducing his herd to 4,800 head. That was during the dairy farm’s most difficult period, and things are looking up today, but that might change.

“We were upside down on pretty about everything under the sun a year ago, and the year before that as well,” Hancock remarked. “We’ve had, normally in the industry, three poor years to one good year, but this year we’ve got four awful years to one good year.”

A large portion of the product is being exported.

“A lot of exports today, not so much in the nation.” “A lot of our goods is migrating abroad, which is great, but any type of glitch in that market and you’ve got a whole lot of difficulty,” Hancock said.

Based on current market conditions, he believes the fight might endure up to three years.

On Tuesday, the University of Idaho’s ambition to establish the nation’s biggest research dairy and experimental farm overcome a major obstacle.

Idaho Gov. Brad Little and two other statewide-elected officials on the Idaho Land Board authorized the university’s proposal to spend $23 million purchase 640 acres of farmland in south-central Idaho, the state’s dairy heartland.

That would be the primary emphasis of the planned Center for Agriculture, Food, and the Environment, or CAFE, at the school.

Idaho’s dairy business is the third-largest in the country, after only California and Wisconsin. However, the business in Idaho – and in general – confronts a number of issues, including greenhouse gas emissions from livestock, land and water contamination, and waste systems from dairies with thousands of cows producing tons of manure.

Political Illustrations

Scott Green, president of the University of Idaho, said the decision was a significant triumph for the state, the university, and the dairy business, but the school hasn’t been able to perform the large-scale research the industry requires to discover answers to those and other complicated challenges.

“The research that we perform there will help us enhance the water quality across the state,” Green said after the decision. “It will assist us in using waste products from the dairy sector in an environmentally and agriculturally advantageous manner.”

Green said that students would get the knowledge required to work at the forefront of agribusiness and dairy sciences. He also said that CAFE allows the institution to earn millions of dollars in research grant money, possibly leading to new ideas and innovation.

If CAFE is successful, it will contain an experimental farm and a 2,000-cow research dairy in Minidoka County. Classrooms, laboratories, and faculty offices would be built in Jerome County near the intersection of Interstate 84 and US Route 93. The College of Southern Idaho campus in Twin Falls County would include a food processing pilot plant as well as a workforce training and education facility.

According to state authorities, the state’s dairy sector has backed the idea by providing more than $8.5 million to far.

Specifically, the board voted on Tuesday to use $23 million from the 2021 sale of 282 acres of endowment land in Caldwell benefiting the University of Idaho’s College of Agriculture and Life Sciences to purchase roughly 640 acres of farmland owned by the university in Minidoka County north of Rupert and convert it to endowment land. The endowment land and funds will now be used to construct the research dairy.

Endowment land is land that Idaho obtained at statehood and that the Land Board administers to create the best long-term return for beneficiaries, mostly public education.

Members of the Land Board had alternative possibilities for the money. It may have invested the $23 million in a fund. It might also have saved the money for future investments in forestry, the most reliable income producer for state property.

The university option was unusual in that it acknowledged research as a valuable asset.

“If this were more inexpensive research, private enterprise would undertake it,” Little remarked after the conference. “These are the types of things that the government must accomplish, these long-term, low-return projects” (investments). If we can get research out of this that leads to a more sustainable, cleaner dairy sector in Idaho, it’s a win-win situation for everyone.”

Applause erupted in the Statehouse meeting room immediately after the vote, an uncommon event for a Property Board meeting that generally deals with staid financial management choices regarding the state’s 3,900 square miles (10,100 square kilometres) of endowment land.

Compared to previous year, milk deliveries were 1.4% lower.

According to AHDB analyst Charlotte Forces-Rees, UK milk deliveries in August were anticipated to be 989 million litres, 14.4 million litres (1.4%) less than in August 2021. This decline is less than the 1.8% rise in milk output predicted for August of last year in the June GB milk production estimate. Averaging 31.89 million litres per day, GB output was projected to be 0.5 million litres lower than August of the previous year. When 31.16 million litres were generated on August 17, daily deliveries were at their lowest. The lowest day last year had 0.5 million less litres than today.

Estimated UK milk deliveries in August came to 1,186 million litres, down 14.5 million litres (1.2%) from August 2021 despite an average daily milk output of 38.24 million litres. The lowest day for UK daily deliveries this year was August 17; it was 0.4 million litres lower than the lowest day in August 2021.

Early data for September already indicates an increase in daily delivery quantities, suggesting that production may have reached its low point in August. This would be consistent with recent seasons, as opposed to the past, when the trough took place later in the year. The increase in block calving during the previous five years is assumed to be the cause of this. This August’s heatwaves put farmers under additional stress, and the further decline in August productivity closely matched the heatwave’s termination on August 14.

According to the Ukrainian club of agricultural business (UCAB), which cited government figures, Ukraine exported 12,700 tonnes of dairy products in August 2022, more than double the amount shipped in August 2021.

As a result, the entire volume of Ukrainian dairy exports in January–August 2022 increased to 59,400 tonnes, surpassing the volume exported during the same period in the previous year after a decline in shipments in March–April as a result of the Russian invasion.

Ukraine exported a wide variety of dairy goods in August 2022, including:

• 3,580 tonnes of non-condensed milk and cream (200% more compared to August of 2021)
• 3,260 tonnes (100%) more of condensed milk
• 273 tonnes of butter dish (-50%)
• 2,530 tonnes (+72%) of whey
• 2,140 tonnes (+250%) of butter
• One thousand tons of cheese (+62%)
• During the month of August 2022, Moldova (4,400 tonnes), Poland (2,400 tonnes), and China were the top importers of Ukrainian dairy goods (900 tonnes).

decreased dairy imports

Dairy imports, meanwhile, are progressively falling. 42,300 tonnes of dairy goods were imported into the nation between January and August 2022, which is 37% fewer than during the same time period the year before. Imports totaled 5,000 tonnes in August. Mostly, Ukraine imports cheese.

According to UCAB, Ukraine will probably start exporting dairy products this year if the present trends continue.

In other Ukraine-related news, 50,000 dairy cows need to be replaced immediately. Read on…

domestic demand is declining

The Ukraine Union of Dairy Enterprises anticipated that the country’s milk output would fall by 13–16% this year, to 7.33–7.56 million tonnes, from 8.73 million tonnes in 2021, and that the conflict would decide how severe the problem would be.

Additionally, it is predicted that the average amount of milk consumed per person in Ukraine in 2022 would decrease by 8% from 212 kg in 2021 to 229 kg this year, mostly as a result of population movement both internally and externally as millions of Ukrainians were compelled to flee their homes.

Exports are becoming more and more significant.

Prices for dairy goods have been steadily rising on the domestic market in Ukraine during the last several months. According to the Ukraine Union of Dairy Enterprises, the main cause of this was an increase in export.

In 2022, a dramatic depreciation of the national currency and inexpensive raw milk gave Ukrainian dairy firms the appearance of being competitive on the international market. According to the federation of dairy firms, the trend is anticipated to continue during the winter, when a decline in dairy output is anticipated throughout the European Union.

Much larger than Lactalis. The conversations have not yet been confirmed by either company, but Dutch trade publication foodbusiness.nl claims to have learned about them from credible sources. According to reports, Sybren Attema, chairman of FrieslandCampina, has been speaking with Jan Toft Nrgaard, a colleague from Arla, for weeks.

The scale of the two dairy cooperatives, both of which operate in the Benelux, is comparable: The annual revenue of Dutch FrieslandCampina is 11.5 billion and Danish Arla is 11.2 billion. Together, they would outperform Lactalis, the current leader in the dairy industry, with a combined turnover of 22.7 billion.

In terms of milk supply, climatic needs, and financial performance, the dairy industry confronts significant obstacles. Both businesses may benefit from economies of scale in terms of their competitiveness on global marketplaces.

The consent of all cooperatives, the dairy farmers who provide the milk, as well as the European Competition Authority must be obtained before a potential merger can proceed. The two businesses previously engaged in merger discussions in 2005, but they ended in failure.

According to the Iowa Department of Natural Resources, the owner of a dairy farm in northwest Iowa was sentenced to pay the state more than $36,000 for a huge manure spill that occurred last year and killed about 100,000 tiny fish in a nearby creek.

When a worker at Rock Bottom Dairy, close to Lester, forgot to turn off an irrigator that sprays manure into an adjacent field one night, there was a manure leak in April 2021.

The next morning, it was determined that there had been an overflow of around 200,000 litres of manure into Mud Creek and a nearby tributary. According to the DNR, there were contaminated areas 13 miles downstream with high levels of ammonia and E. coli bacteria.

The dairy has roughly 3,800 animals, and in the last 20 years, the DNR has recorded four prior manure leaks there.

One of them, in 2009, killed approximately 1,400 fish and similarly contaminated the streams with roughly 100,000 gallons of excrement. According to DNR documents, the leak was triggered by a clamp that broke free from a hose being used to move manure about the site. The dairy received a $6,000 fine.

According to Scott Wilson, manager of the DNR field office there, the reasons for the leaks varied in each case.

Regarding the most recent leak, Wilson stated, “This is unfortunate. It was obviously a mistake, and we anticipate that they will develop policies or some other kind of fix to ensure that it doesn’t happen again.

The DNR’s maximum administrative penalties for the most recent incident was $10,000, and dairy owner Bernard Bakker agreed to pay it. Along with the expenditures associated with the DNR investigation into the fish kill, he must also reimburse the state for the estimated 96,168 fish that were destroyed. That came to almost $26,100.

The National Irish Food Board Bord Bia actively promotes Irish food and beverage exports to South East Asia at the moment after internal research had identified the region as having the biggest development potential.

According to Bord Bia South East Asia Market Specialist Malcolm Leoi, Ireland exported EUR535 million (US$528.6 million) worth of food and beverage exports to ASEAN last year alone, which was a 20% year-over-year growth even amidst the pandemic. This growth was clearly led by dairy, which shows even greater potential for the sector.

The majority of dairy products consumed in the region, including condensed and evaporated milk, already contain Irish dairy; however, because a lot of this is still in the B2B stage, consumers might not be aware of this just yet. In fact, Singapore and Malaysia are our main hubs for dairy processing.

We do think there is room for expansion since Ireland, through its Origin Green program, the first and only national sustainability initiative for the whole agri-food sector, is currently able to provide a degree of sustainability and quality assurance that no other nation can. ​

“We definitely see this as crucial for future growth, with more and more younger consumers today seeking for more sustainable alternatives when making purchasing decisions,” the statement continued.

Leoi further emphasized how the quality of the region’s dairy and meat has already been tried and tested there as not just favoured but also held in high respect due to the farming practices used to produce them.

“All of our cows and sheep are grass-fed, which makes a tremendous difference, for Irish dairy and meat, for example. The Origin Green program also provides long-standing quality, food safety, and sustainability credentials,” he said.

As a small island nation, Ireland has a climate that is ideal for growing grass, which contributes to the grass-fed quality. In addition, because most of the farms in the area have been in operation for many generations, there is much to be said for the understanding and connection that can be made at this level as opposed to factory farms.

We already know that this quality is highly valued in the area since, despite the fact that we have only introduced one consumer-facing dairy brand thus far, Kerrygold butter, which enables better performance and a richer flavour, it has quickly risen to the top spot in several marketplaces.

Ireland’s food exports to ASEAN and East Asia are expected to reach EUR900 million (US$889.3 million) by 2025, almost doubling the EUR535 million (US$528.6 million) export value from 2021. This goal demonstrates Bord Bia’s ambitious plans for the region.
Brexit is a factor.

In contrast to Northern Ireland, which is now a part of the United Kingdom but is no longer a member of the EU, Bord Bia represents the Republic of Ireland, the southernmost region of Ireland and the region that will continue to be a part of the EU even after Brexit.

Leoi stated that the internal market analysis was carried out in anticipation of Brexit and its potential effects on Ireland’s food and beverage economy.

“Whether Brexit happened or not, the population in ASEAN is still expected to grow, leading to a rise in protein demand as well. Additionally, there are a number of markets, including Singapore and Brunei, that are either less able to produce their own food supply or are dependent on imports for meat and dairy, so this is a demand we want to capitalize on, Brexit or not.”

Singapore is a significant market.​

Ireland, in particular, views Singapore as a market with enormous possibilities given the country’s strong emphasis on food security.

No government is more acutely aware of this than Singapore, as seen by its 30 by 30 target, said Leoi. “As populations in Asia rise, output actually has to double, making sustainability and food security a priority not just for consumers but also for governments.”

“Ireland actually understands this very well because, as everyone is aware, food security has taken on significant importance in this country and because supply systems there are no longer as reliable as they once were. For instance, Singapore is searching for reliable partners to diversify its supply chains. ​

We also know that 25% of Singaporean consumers give safety, health, and sustainability in food an increasing amount of importance. The EU already has a reputation for these qualities, but today’s consumers want concrete evidence. Ireland has this differentiated value proposition in the form of Origin Green, which can provide the data and proof points, verified annually, to give consumers that assurance.

Even emerging and middle-income markets like Malaysia, Vietnam, and the Philippines have affluent consumers who share this same taste. As countries become more urbanized, these foods will resonate more with them, so eventually there will be a diffusion of these ideas and values – and we are looking at the long run here. However, Singapore is currently the market that is leading the way for this.

​

Pennsylvania has slipped down the Top 10 list of dairy-producing states over the past decade, but it might be able to regain some lost ground.

Dairy production is likely to grow in places with sufficient land and water, and regulations that aren’t too burdensome.

“I hear Pennsylvania’s a little bit like that,” said Betty Berning, a Minnesota-based dairy consultant and economist.

Berning spoke Wednesday at the Dairy Financial and Risk Management Conference presented by the Center for Dairy Excellence.

Pennsylvania has an opportunity to grow in part because the Western states probably don’t. The straitened water supply may dissuade dairy processors from expanding in that region and could make purchased feed too expensive for California farmers to consider adding cows.

Berning has higher hopes for the Midwest, where rapid expansion in Michigan and South Dakota is already showing that those states offer the conditions for success.

Pennsylvania has the water and land base to join the party, but the state isn’t a lock to attract dairy investment.

It’s more mountainous and populous than any Midwestern state, and has high land costs in some places. Pennsylvania is also heavy on processing for fluid milk at a time when other dairy products are driving the industry’s growth.

The state’s milk production has declined 6% since 2010, even as Michigan has grown 44%, USDA statistics show. Pennsylvania slid from fifth to eighth place during that time.

To attract new dairy investment in Pennsylvania, the state will need to implement the right policies, Berning said. Wisconsin has made a concerted effort for the last 20 years to at least maintain its dairy industry, and that state remains a top dairy producer with the most dairy farms in the U.S.

Pennsylvania has been working to get dairy-friendly policies in place.

In 2020, the latest of several state dairy studies provided more than 50 recommendations to bolster the industry, and 10 of those goals have been achieved, Ag Secretary Russell Redding said.

The state has courted new processing plants, including a baby formula plant that opened earlier this year in Reading.

In 2019, the state created Farm Vitality Grants that help families plan their futures. And a recent $500 million upgrade to the Port of Philadelphia attracted a company that will ship directly to China, avoiding the transshipment that was previously required.

“I like our chances,” Redding said. “I like what we’re doing. I like what we see. I see a future that has agriculture in it.”

Berning offered another encouragement — dairy farmers can almost always be profitable, as long as they use risk management.

The federal Dairy Margin Coverage program is the starting point — it’s free at the base coverage level for small dairies — but farms can also pursue value-added processing, diversification, good transition planning, and lobbying for farm-friendly policies, she said.

Only a third of Pennsylvania dairies are enrolled in Dairy Margin Coverage, said Zach Myers, risk education manager at the Center for Dairy Excellence. Religious objections from the state’s Plain Sect farmers may contribute to the low participation rate in the federal program.

Export Growth

If Pennsylvania has an opportunity to build its stature within the U.S., the nation is also in a decent position to grow its stature on the export market. The U.S. set a dairy export record and is on pace to do so again this year, Berning said.

European competitors are weighing environmental rules that could limit their dairy expansion.

The Netherlands — where low-lying land and high livestock density raise water quality concerns — has proposed nitrogen regulations that could lead to many farmers exiting the industry.

Dutch farmers have protested the potential threat to their livelihoods, though it’s possible some of the drawdown could be achieved through attrition, buyouts or transfer of calf operations to a neighboring country, Berning said.

New Zealand, another major dairy exporter, is approaching maximum cow capacity for its Colorado-sized land base. Kiwis value dairy because it accounts for 3 to 5% of national GDP, but they have a potentially conflicting desire to keep the island nation environmentally pristine, Berning said.

China has set aggressive goals for increasing consumption of dairy, which is seen as key to combating child malnutrition.

The country is building massive dairies to meet the growing demand, but it doesn’t have the land base to grow enough crops, especially with some of the farms sitting near the expanding Gobi Desert.

“They’re going to run into water issues,” Berning said.

Dairy growth could also occur in places with population growth, which has cooled in much of the world. South America and Africa are the big exceptions.

Africa lacks the infrastructure and political stability to become a hotbed of dairy production, but over time, South America could build its stature in the industry, Berning said.

Source: lancasterfarming.com

In an effort to avoid the effects of Western sanctions, the Russian government has tentatively agreed to apply zero import charges for another six months on a broad list of essential machinery and raw commodities.

Victoria Abramchenko, the deputy prime minister of Russia, recently declared that the federal budget will pay dairy farmers for 70% of the costs related to the purchase of labelling equipment. Early in 2023 is when the rule is expected to take effect.

In order to “stabilize the financial position” in the Russian dairy sector and to “reduce the anguish of the previous few years,” this move, according to Artem Belov, chairman of the Russian Union of Dairy Producers, Soyuzmoloko, would be taken.

According to the Russian dairy industry, implementing mandatory labelling would cost approximately 12.2 billion roubles (US$200 million), of which 8.9 billion roubles (US$148 million) would go toward labelling equipment. Belov also noted that Russian dairy companies would need to spend between 9 and 15 billion roubles (US$150 and US$250 million) annually on label purchases from the Russian state operator, in addition to incurring some other costs.

Belov expressed the wish that the Russian government will continue its program of subsidized soft loans, which Russian businesses have benefited from over the previous few years.
Free of charge imports

The concept of expanding duty-free imports on a lengthy list of raw materials, machinery, components, and packaging used by Russian dairy industries has also received approval from the government of Russia.

According to Roman Chubak, a public relations expert for Soyuzmoloko, the decision, which was first authorized by the Eurasia Union Economic Commission in March 2022, had an impact on more than 100 different goods, all of which were crucial for the dairy industry.

Chubak said that the action was required in light of the present “political environment” as well as the growing expenses of logistics and raw materials.

In particular, Chubak said, “these measures [to eliminate import restrictions] enabled the dairy industry to alleviate the adverse consequences of economic sanctions, both for business and, ultimately, for consumers, notably in reference to socially significant items, specialized and baby food.

The government will “assist goods makers maintain steady operations in the face of persistent foreign policy and economic issues” by extending the measure waiver for a further six months, according to Chubak.

When Tane Bradley was a little boy, his schoolteacher mother and her boyfriend relocated the family south in search of seaweed after returning from a working vacation on organic farms. Nearly three decades later, Tane and his wife Clare Bradley operate the business once known as Ocean Organics, now AgriSea, which creates liquid concentrates from the local seaweed Ecklonia Radiata. According to Kate Green’s article, they just received a $750,000 loan from the government’s Regional Strategic Partnership Fund.

Tell me how seaweed is used in agriculture.

In the main industries, which include horticulture, dairy farming, apple and kiwifruit orchards, and everything else that grows, our goods are predominantly used.

All seaweeds include nutrients, growth-promoting agents, amino acids, and complex carbohydrates, however, not all seaweeds are created equal. There are roughly 1000 species in Aotearoa.

It is decided to use brown kelps in agriculture. Methods of extraction and fermentation make sure the nutrients are kept for usage by the soil, plants, and animals.

We stumbled onto our beekeeping product by chance. We discovered that beekeepers were purchasing one of our items intended for dairy cows to feed their bees while they were being fed sugar syrup.

According to research, Ecklonia Radiata includes bioactives that can heal gastrointestinal problems and parasites in bees.

How was AgriSea founded?

This company was founded in 1996 by Tane’s mother and her business partner as Ocean Organics. They worked on organic farms throughout the summer as South Auckland school teachers, and one of the farms stood out for its excellence and used seaweed as its primary input.

They returned and did a further investigation after being fascinated by the potential of seaweed. Since they were aware of the demand, they sold their home, loaded up their van, and relocated to the Paeroa.

The days when we could see our consumers by driving about in a day have long since passed after 26 years.

From wine producers to beekeepers, we provide to sectors in the United States, Canada, Italy, and Australia. Autumn sales have climbed by 200% year over year, and farmer uptake has improved as a result of our new relationship with Farm Source.

There are presently around 40 employees. Every day of the week, the six of us used to make lunch together. Even if we only cook on Wednesdays anymore, we are still a way.

How do you ensure the sustainability of your methods?

Our environment serves as our life support system, but it is having difficulty doing so. You can only operate under a take-and-make-waste model for so long.

We take care not to remove all of the seaweed that washes ashore since a different ecology depends on it.

Seaweed is manually collected by our local collectors under the direction of the Ministry of Primary Industries; the supply chain can be challenging and unreliable.

But we must take a more circular approach if we want to maintain a strong life support system for future generations.

Does seaweed provide any advantages for individuals as well?

We have always understood that we wanted to create something for people. Everyone anticipates that it will taste fairly fishy, and various processing techniques can bring out that flavour; believe us, there have been some disastrous efforts.

We received a high-value nutrition grant in 2021 to investigate several techniques for fermenting seaweeds. We sampled a variety of species before settling on one that, in our opinion, tastes alright.

Brown seaweed has a flavour that is fairly sweet, almost like salted caramel, since it contains a lot of long-chain mannitol carbohydrates. We believe we’ve found one with a good iodine level that isn’t overpowering.

Our three children have always understood they are not permitted juice without their seaweed, thus we all consume seaweed as a family.

These are particularly abundant in sulfated polysaccharides, complex carbohydrates only found in brown kelps. Otago University is now doing consumer testing on the formulation.

Next, what?

There are thousands of species of seaweed still to be discovered, but we now only use one. Not just for AgriSea but also for Aotearoa New Zealand and our economy, the prospects are limitless.

Seaweed does not have roots; instead, it absorbs nutrients from the ocean. We’re engaged in a pioneering bioremediation project that involves running water from the Waihou River via a unique seaweed-ponding system.

It cleans up the water by absorbing nitrogen and phosphorus. The seaweed may subsequently be transformed into agriculture fertilizer.

Our innovative animal supplement line, which is the first for dairy cows to lower levels of oxidative stress—the primary cause of disease—and nitrogen excretion, which might have a significant positive impact on our water quality—won a Fieldays Innovation Award.

We also collaborated with Southward Gin, a neighbourhood distillery in Wellington. It turns out that seaweed was a fantastic technique to bring out the drying properties of the gin. They just launched a dry vodka and are currently developing a whiskey.

Being able to use the phrases “seaweed” and “hi-tech” in the same sentence is just the beginning. Winning the Hi-Tech Mori business of the year was a compliment to our staff and partners.

Strict, careful rules can hinder progress. A recent study report by Global Market Insights Inc. projects that the size of the dairy enzymes market would surpass $1 billion by 2030.

The dairy enzymes market trends will be influenced by a favourable forecast for the dairy product processing sector, according to the research. The demand for the product will increase as government measures to lower the risk factors for food items throughout the food and beverage sector that may cause intestinal damage, digestive problems, diarrhea, and other concerns become more widespread. The growing prevalence of lactose intolerance among individuals worldwide is changing consumer preferences toward lactose-free food supplements as an alternative to lactose-rich goods, which will boost the market for dairy enzymes.

According to the paper, strict and circumspect laws regarding the production and use of enzymes might prove to be a significant barrier. However, growing public knowledge of the usage of these enzymes in the production of curds, cheese, butter, and ice creams may encourage consumers to purchase the product while also motivating industry actors to finally minimize the risk-related characteristics of these enzymes.

The dairy enzymes market is divided into many categories in the study based on the kind of enzyme they are: lipases, carbohydrases (amylase, lactase, and others), proteases, esterases, catalases, transglutaminases, and others. The revenue for the carbohydrases market was $220 million in 2021, and it is anticipated that by 2030, it would be worth $350 million, thanks to the growing demand for sports drinks brought on by peoples’ changing lifestyles. Since carbohydrase removes acids and hazardous gases from these materials, it is often employed to produce food and beverage, pharmaceutical, and animal feed products.

By 2030, the whey protein application section of the dairy enzymes market will be valued more than $100 million. Dairy enzymes, like protease, mainly function to break the peptide bonds of different proteins, resulting in smaller, more readily digested pieces that will speed up the absorption of whey proteins. As a consequence, the need for dairy enzymes will significantly grow.

Youngstock numbers remain high

The GB milking herd totalled 1.63 million head of cattle, a decrease of 17,000 head (1%) below July 2021, according to the latest data from British Cattle Movement Service. Overall youngstock numbers have continued to increase, and as of July 2022 totalled 941,000 head, up 3.4% (31,000 head) on July 2021, reported Charlotte Forces-Rees, a trainee analyst with AHDB. 

Despite the overall category growth, within youngstock there was a 1.7% drop in the number of calves aged 0-6months (3,800 head), compared to the same time last year. Additionally, there was a slight quarter-on-quarter decline in the number of 0-2 year olds – the first since January 2020.

All main age categories aside from youngstock saw contraction in numbers, with the largest decline seen in the 4-6 year group, back 13,100 head (-2.6%). Due to the increase in youngstock there has been a small growth in overall herd size from July 2021, up 0.3% (7,900 head).

Although the milking herd has been in long term decline, the increase in youngstock could help stabilise numbers as they start to move up through the herd. Conversely, given the financial pressures farmers are under, AHDB believes they could instead see additional destocking, either as an overall contraction to ease financial burdens or to make room for youngstock moving up. Based on cull cow numbers, this does not appear to have happened to date, however it will be a point of discussion with industry at this week’s milk forecasting forum.

The Dairy Management Inc. (DMI) New Product Competition is accepting applications for innovative products that focus on dairy’s qualities related to calming.

The program, formerly the National Dairy Council New Product Competition, is open to U.S. undergraduate and graduate students to develop products in line with industry and consumer insights to uncover innovative dairy-based products that offer calming benefits.

Research shows:

• With a heightened emphasis on mental and emotional wellbeing, consumers are looking for products that calm.

• There is projected growth associated with products that calm, and these benefits are of particular interest with Gen Z consumers.

Successful entries will meet competition criteria, demonstrate innovation and provide value to consumers. The judging panel includes experts from across the dairy industry and winning teams will be recognized at the Institute of Food Technologists’ annual meeting in Chicago next July.

The winning team will earn $8,000 with second place receiving $5,000 and $3,000 going to third place.

The competition provides a platform for students to bring their knowledge and expertise to dairy product innovation. Students can integrate their work on product formulation with packaging, pricing and marketing to create a product that meets consumer needs.

The deadline for submissions is Jan. 16, 2023. For information, visit www.usdairy.com/research-resources/new-product-competition or send an email to DMI’s Rohit Kapoor at rohit.kapoor@dairy.org.

Started in 1993 in Gustine, Texas, with just 50 cows, Volleman’s Family Farm now has 5,000 dairy cows, its own unique milk brand and 14 different milk products.

Volleman brothers Ben, Daniel, Andrew and David recently sat down with American Farm Bureau Federation President Zippy Duvall to discuss their dairy farm and how they bridge the gap between dairy farmers and dairy consumers.

“My parents always had a dream of getting closer to the consumers,” Andrew Volleman said. “We know we make great milk and we wanted to get it in the hands of our consumers, so we’ve had that vision for a long time.”

The Volleman family takes pride in connecting to their consumers and offering a firsthand look at the dairy industry.

One way the Vollemans connect with their consumers is by offering dairy tours once a month. A visit to the family farm is a great way for consumers to learn more about where their products come from and how they get to the grocery store.

Some visitors may be concerned to find out that the cows spend most of their time inside the barn.

David Volleman explained, “A cow starts getting heat stressed at about 68 degrees Fahrenheit. We haven’t dropped below that in months.” He went on to describe how staying inside the barn for the warmer parts of the year helps the cows stay cool, comfortable and healthy. Urban consumers may only have the chance to learn about this if they take a trip put to the farm to learn from the producers.

President Duvall discussed the challenges of dairy farming with the Volleman brothers. They mentioned water, labor, regulations, supply chain issues and heat stress as significant hurdles to the success of their business.

President Duvall commended the Volleman brothers on their ability to overcome these challenges and maintain their family legacy. He hopes that hearing the Vollemans’ story will help consumers understand that just because a farm is large, doesn’t mean it’s a factory.

“It can be large, and it can be personable, and it can be a family out there running it,” he said.

Each of the four Volleman brothers has gone to college and returned to the family farm. They are proud to carry out their parents’ vision and deliver products directly to consumers.

Learn more about Volleman’s Family Farm.

Milk production likely to remain stable

Dairy Australia’s September 2022 Dairy Situation and Outlook report indicates the season is gaining momentum. According to the report, milk production is likely to remain stable this season, with farmgate prices remaining high.

Weather and workforce remain issues for the industry. A third consecutive La Niña weather event is likely, which may increase homegrown feed production, but wet conditions will be challenging for farmers who have already received higher than usual rainfall.

A smaller global milk pool is forecast due to droughts, high input costs and farm exits in the northern hemisphere. This may offer opportunities for Australian exporters.