Archive for European farmers

Bluetongue Outbreak Shakes EU Dairy Industry: High Mortality and Soaring Prices

Learn how the bluetongue outbreak is disrupting the EU dairy sector. What’s the impact on milk production and prices? Find out now.

Summary:

The recent bluetongue disease outbreak has significantly impacted European sheep and dairy farms, sparking concerns among dairy farmers and industry professionals. Originating in June in the Netherlands, the virus has swiftly spread across several countries, including Belgium, Germany, France, and others, leading to increased sheep mortality and a notable decline in milk production. Even though vaccination efforts are in place, the effects on dairy output and prices are substantial, causing a ripple effect throughout the market. Dairy prices in Europe have surged, with essential products like Emmental and butter reaching all-time highs. “Last year, milk output from affected cows fell an average of nearly 2.2 lbs. per day over ten weeks,” reported the Global Agricultural Information Network (GAIN) [source](https://www.gain.fas.usda.gov). This situation underscores the urgent need for comprehensive strategies and collective efforts to mitigate the impacts of bluetongue. How will producers respond, and what measures will be taken to protect livestock and stabilize the market? Dairy specialists are asking for increased biosecurity measures, such as enhanced farm sanitation, reducing insect vectors, and employing advanced herd management technologies to monitor cattle health closely.

Key Takeaways:

  • The latest bluetongue outbreak began in the Netherlands in June and has spread to numerous European countries, affecting sheep and cattle.
  • Bluetongue disease, caused by midge bites, does not spread from animal to animal and poses no threat to humans.
  • Infected cattle suffer from health and fertility issues, leading to a significant decline in milk production.
  • Some farmers send affected cattle to slaughter before full recovery, reducing milk output.
  • Milk and dairy product prices in Europe have surged in response to the outbreak, with notable increases in Emmental, whey, skim milk powder, and butter prices.
  • The economic impact of bluetongue is evident, with rising prices creating additional challenges for the dairy industry.
bluetongue disease, BTV virus, dairy sector impact, European farmers, midge transmission, cattle industry outbreaks, economic consequences, vaccination strategies, biosecurity measures, herd management technology

The latest outbreak of bluetongue illness has sent shockwaves across Europe’s dairy sector, jeopardizing the livelihoods of numerous farmers. This incredibly infectious virus, infamous for producing catastrophic death rates in sheep, is now wreaking havoc on dairy farms by significantly lowering milk output. What began in the Netherlands in June has spread quickly to Belgium, Germany, Luxembourg, France, Denmark, Austria, England, and even Norway. The outbreak’s rapid spread raises severe worries about its control and long-term effects. “Bluetongue does not spread from animal to animal and poses no danger to humans,” claims the USDA’s Animal and Plant Health Inspection Service. However, the effect on animal health and dairy production is considerable [USDA APHIS].

CountryDate of First CaseNumber of Affected FarmsEstimated Production Decline (%)
NetherlandsJune 20233004.5
BelgiumJuly 20232503.8
GermanyJuly 20234005.2
FranceAugust 20233504.9
AustriaAugust 20231503.5

Bluetongue Virus: A Threat Reignited 

Bluetongue disease, often known as BTV, is a viral illness mainly affecting ruminants, including sheep, cattle, and goats. The virus spreads by biting microscopic insects known as midges, notably the Culicoides species. While sheep are the most badly affected, cattle and goats may suffer greatly. It is important to remember that bluetongue does not directly threaten people and does not pass from animal to animal.

Bluetongue outbreaks have historically caused havoc in the global cattle industry. Significant outbreaks have already occurred in Europe, with the 2006-2008 pandemic especially severe. This outbreak resulted in the infection of hundreds of thousands of animals in afflicted areas, causing significant economic losses. Another large epidemic occurred in 2015, mainly in France, prompting intensive vaccination attempts to stem the spread. These occurrences highlight the disease’s tendency to disrupt agricultural operations and economic stability, underlining the need for prompt reaction and prevention measures.

Bluetongue’s Devastating Spread: An Emerging Crisis in European Agriculture

The bluetongue epidemic began in the Netherlands and has quickly spread to other European countries. Since its first outbreak in June, the virus has expanded to Belgium, Germany, Luxembourg, France, Denmark, Austria, England, and Norway. According to current statistics, more than 2,200 farms have reported illnesses, raising worries within the agricultural sector.

The effect on sheep has been especially severe, with high death rates threatening animal herds. Cattle infections, on the other hand, cause a variety of health issues that significantly impact milk supply and fertility, albeit being less lethal. For example, the Global Agricultural Information Network (GAIN) reported an average daily decrease of approximately 2.2 pounds per cow over ten weeks among impacted herds last year, eerily similar to the current epidemic.

This fast spread emphasizes Europe’s need for robust containment and immunization programs. It also highlights the catastrophic economic consequences for dairy producers, who already see a significant drop in milk production and dairy products.

Bluetongue Bleeds Dairy Yield: Production and Quality Take a Hit 

The outbreak’s effect on milk output is undeniable. According to Dairy Market News (DMN), weekly milk collections in Western Europe are seeing seasonal declines and direct consequences of bluetongue illness. This is more than simply fewer liters of milk being produced; the milk quality is also deteriorating. Component levels, particularly fat and protein content, have decreased with volume.

The Global Agricultural Information Network (GAIN) research delves further into the topic. Last year, the impacted cows’ milk supply decreased by an average of 2.2 pounds per day over ten weeks. Consider the implications on a broader scale: dozens, if not hundreds, of cows per farm suffering similar losses add up to considerable output shortfalls.

Infected cattle suffer chronic health difficulties, which affect their productivity and cause a lower milk supply. According to DMN, many of these animals continue battling health and reproduction issues long after infection, exacerbating the decrease in milk output. Some dairy producers may, out of despair or strategic need, choose to kill these afflicted animals sooner rather than later, exacerbating the acute shortage in milk output.

Economic Shockwaves: Bluetongue’s Ripple Effect on Dairy Product Prices 

The economic impact of the most recent bluetongue epidemic on the dairy sector cannot be underestimated. As the illness spreads throughout important dairy-producing areas in Europe, we’ve seen substantial changes in market dynamics. This is notably noticeable in the recent price increase for dairy products.

Emmental cheese prices have risen 5.7% in the last month, demonstrating the market’s quick reaction to declining supplies. Whey prices in Western Europe have risen even more dramatically, by 10.8%, reaching their highest levels since late 2022. This surge is directly related to lower milk production and higher production costs due to decreased efficiency in afflicted herds.

German skim milk powder has not been immune to these impacts, with prices rising by 10.3%. However, butter has seen the most significant price rise. Butter prices in Germany have reached record highs of more than $4 per pound. Western European butter prices have risen 13.8% from a month ago, demonstrating how severely the bluetongue epidemic has impacted the dairy industry.

These price increases may seem to be a silver lining for dairy producers—higher product prices may balance some losses due to lower milk output. However, the truth is significantly more complicated. Increased pricing reflects increased input costs and more operating problems. Producers may deal with poorer herd production, higher veterinary expenditures, and, in certain situations, the need to cull diseased animals sooner than expected.

The larger supply chain is also under strain. Processors have irregular supplies and varying quality, which affects everything from manufacturing schedules to long-term contracts. Retailers may need to change their pricing methods, perhaps passing on part of the higher costs to customers.

Finally, the bluetongue epidemic demonstrates the dairy supply chain’s susceptibility to disease outbreaks. As stakeholders, examining short-term mitigation techniques and long-term resilience planning is critical. How are you preparing your operations to handle this kind of shock? Understanding and predicting these economic repercussions is critical to our dairy industry’s long-term viability.

Combating Bluetongue: Collective Efforts and Strategic Measures 

Dairy farmers and industry experts are working on numerous fronts to tackle the bluetongue epidemic. Vaccination initiatives are at the vanguard of these efforts, with a coordinated drive to immunize susceptible cattle and slow the virus’s spread. However, the immunization push confronts logistical problems and variations in vaccine supply between locations.

In regions with significant outbreaks, many farmers have taken the painful but necessary step of sending infected animals to slaughter. This approach helps to avoid more losses and keeps the herd healthy. While this choice is far from ideal, it is a pragmatic approach to crisis management and reducing long-term effects on agricultural output.

Furthermore, dairy specialists are asking for increased biosecurity measures. This involves increasing farm sanitation, reducing insect vectors, and establishing tight monitoring techniques to identify and treat bluetongue cases early. Technological improvements, such as herd management software and real-time monitoring systems, are also being used to monitor cattle health closely.

The industry has not stopped there. Collaboration among farmers, veterinarians, and government organizations has increased as stakeholders exchange information, resources, and best practices. Educational activities are in place to keep farmers up to date on the newest advances and herd-protection techniques.

Despite the considerable obstacles the bluetongue epidemic faces, the industry’s proactive approach displays resilience and dedication to protecting Europe’s dairy sector. The collaborative effort seeks to alleviate present effects and set the framework for improved preparation for future epidemics.

Bluetongue Outbreak: Raising Alarms and Demanding Action 

The developing bluetongue epidemic in Europe has aroused concerns beyond the agricultural community. For dairy producers, the issue highlights livestock’s constant susceptibility to illness and the critical necessity for strong biosecurity policies and practices. According to industry experts, the unprecedented scope of this spread needs a two-pronged approach: emergency intervention and long-term prevention measures.

Dr. Michael O’Leary, a well-known veterinary epidemiologist, emphasizes the need for immunizations while advocating for more research into more effective and long-lasting remedies. “Vaccinations are our frontline defense, but we need to look into developing more resilient livestock breeds and more comprehensive monitoring systems,” he tells the Dairy Reporter.

From an economic viewpoint, the rise in dairy product prices, such as Emmental and butter, calls into doubt market resiliency. Professor Ian Kilgore of the Agricultural Policy Research Institute believes government action may be required to stabilize the market. “In the near term, subsidies and financial assistance for impacted farmers may help to minimize economic shocks. However, we should also concentrate on market diversification to lessen our reliance on a particular location,” Kilgore argues [Agricultural Policy Research Institute].

Furthermore, confident industry leaders emphasize the value of international cooperation. John Edmunds, CEO of a prominent dairy cooperative in the EU, emphasized the need for a unified effort. “To avoid the spread, the EU requires a coordinated plan encompassing both impacted and peripheral nations. He says sharing resources, research, and best practices will be critical [EU Dairy Coops].

Conservatives advocate for practical solutions that balance immediate assistance and long-term sustainability. “Rather than pouring funds into temporary fixes, we need to design frameworks that build resilience from the ground up—starting with farmer education and extending to international policy adjustments,” says Margaret Wilkins, a policy analyst [Conservative Policy Papers].

The ongoing bluetongue epidemic is a sobering warning that fast remedies will not suffice in an increasingly linked society. Policymakers, dairy farmers, and industry stakeholders must cooperate to protect the business from future crises, implementing urgent and long-term initiatives.

The Bottom Line

The current bluetongue epidemic has posed substantial issues for European dairy and sheep producers and has had far-reaching consequences for the whole agricultural industry. With milk supply and quality suffering significantly and prices for essential dairy products such as butter and skim milk powder skyrocketing, the economic consequences are clear and immediate. Despite current immunization attempts, the recurrent nature of this virus raises severe concerns regarding its long-term viability and the efficacy of existing disease management measures.

Looking forward, the EU dairy sector must address the possibility of further outbreaks and devise comprehensive risk-mitigation strategies. Enhanced surveillance, more effective immunizations, and robust contingency plans will be critical to maintaining the industry’s productivity and stability. The issue remains: Are we prepared to take these required actions, or will we continue to respond to the repercussions of this ongoing threat?

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EU-China Dairy Trade Dispute Intensifies: What It Means for Global Markets

Curious about the EU-China dairy trade dispute and its global impact? Find out how this conflict could reshape the dairy industry.

Summary: In a significant escalation of international trade tensions, China has launched an anti-subsidy investigation into European Union (EU) dairy exports, igniting global concerns. The probe, announced by China’s Ministry of Commerce, aims to scrutinize subsidies provided to EU dairy farmers, suspecting these financial supports have unfairly bolstered the competitiveness of EU dairy products in the Chinese market. This move is perceived as a retaliatory action following the EU’s tariffs on Chinese electric vehicles. The investigation, set to span over a year, will examine imports dating back to early 2023, potentially resulting in substantial tariffs or restrictions on European dairy products entering China. The EU-China dairy trade dispute is rooted in the complex global commerce network and regulatory procedures, focusing on major European exports like fresh cheese, milk, and cream and examining 20 subsidy schemes. European organizations like FrieslandCampina and Dairy Industry Ireland collaborate with investigating agencies to demonstrate compliance with international trade standards. If the charges are confirmed, EU dairy imports may face severe taxes or limitations, impacting European farmers and altering global trade dynamics. Major dairy exporters like New Zealand and the United States also stand to be affected. European dairy associations, such as Eucolait and Copa Cogeca, are calling for assistance measures to support European farmers amid this looming trade conflict.

  • China initiates an anti-subsidy probe into EU dairy exports, citing unfair competitive advantages due to subsidies.
  • The investigation could lead to significant tariffs or restrictions on EU dairy products entering China.
  • The probe is seen as a retaliatory measure following the EU’s tariffs on Chinese electric vehicles.
  • Investigation covers key dairy products like fresh cheese, milk, and cream, examining 20 different subsidy schemes.
  • European dairy organizations, including FrieslandCampina and Dairy Industry Ireland, are working to prove compliance with international trade rules.
  • The outcome of the probe may substantially impact European dairy farmers and shift global trade dynamics.
  • New Zealand and the United States, major dairy exporters to China, might also feel the repercussions.
  • European associations such as Eucolait and Copa Cogeca are urging for measures to support farmers during this trade dispute.
EU-China dairy trade dispute, Chinese Ministry of Commerce, improper subsidies, European dairy producers, global commerce network, regulatory procedures, state subsidies, unfair edge, European market, major European exports, dairy products, EU's Common Agricultural Policy (CAP), potential losses, Irish dairy exports, investigating agencies, international trade standards, Chinese inquiry, fresh cheese, milk, cream, subsidy schemes, severe taxes, limitations, European farmers, global trade relations, New Zealand, United States, market share, supply chain, price volatility, AHDB, powder prices, global production, pricing plans, larger-scale precedent, European dairy associations, Eucolait, Copa Cogeca, labor conflict, assistance measures, adverse effects, local production, self-sufficiency, market share, European dairy farmers, new markets.

The EU-China dairy trade battle is rapidly escalating, and it’s about more than just milk and cheese. What is really at stake here? According to Eucolait, the European umbrella group for the dairy sector, ‘For many years now, the European Union has proven to be a reliable supplier of high-quality dairy products and ingredients to the Chinese market.’ It is alarming that dairy will be sacrificed in an industrial dispute over electric automobiles. The European Commission should urgently and decisively act to resolve this trade dispute. The need for a swift resolution is paramount. Let’s investigate the specifics and understand how this conflict will impact global markets.

Background: The Catalyst for Conflict 

The Chinese Ministry of Commerce has probed potential improper subsidies for European dairy producers. This measure primarily avenges the EU’s levies on Chinese electric automobiles. What is the true story behind these tit-for-tat measures?

The conflict is rooted in the complex global commerce network and regulatory procedures. Earlier this year, the European Commission placed duties on imported electric cars from China, citing worries over state subsidies that allegedly provided Chinese manufacturers an unfair edge in the European market. In response, China focuses on major European exports such as dairy products, which are heavily subsidized by the EU’s Common Agricultural Policy (CAP).

This growing situation highlights the giant geopolitical chess game in which big economies use trade policy as instruments of influence. Chinese authorities claim that EU subsidies under different CAP programs, such as critical income assistance and incentives for young farmers, create an unfair playing field for domestic dairy producers. On the other hand, the EU believes that its subsidies are entirely compliant with World Trade Organization (WTO) standards, characterizing China’s measures as excessive and politically motivated.

The stakes are enormous, with potential losses well beyond the sectors directly involved. For instance, Irish dairy exports to China were €426 million (US$487 million) in 2023, with an estimated €46 million at risk due to the current investigation. Organizations such as FrieslandCampina and Dairy Industry Ireland are ready to collaborate with investigating agencies to demonstrate compliance with international trade standards. The gravity of these potential losses underscores the need for swift resolution.

This disagreement highlights an important point: the global marketplace is always susceptible to the ebb and flow of international politics and policy choices. Despite its isolated character, the dairy industry is now embroiled in a more significant economic battle between two economic behemoths, highlighting the interwoven nature of contemporary commerce.

The Stakes: What’s Under Investigation? 

The Chinese inquiry targets dairy products, including fresh cheese, milk, and cream. It looks at 20 subsidy schemes that give EU dairy an unfair edge. How may this affect the global dairy market?

First, if the inquiry confirms the charges, EU dairy imports may face severe taxes or limitations. This would not just hurt European farmers but also change global trade relations. Key exporters like New Zealand and the United States may embrace the chance to boost their market share in China.

Furthermore, interruptions in the supply chain might cause price volatility. For example, the UK’s AHDB has said that rising milk output had already dragged down powder prices. Further limitations might worsen the trend, affecting global production and pricing plans.

This investigation might create a larger-scale precedent, prompting other governments to study subsidies and trade practices more closely. The European Commission’s challenging approach to protecting its policies and sectors may result in comparable reprisals, culminating in a more significant trade battle.

This probe is more than just a bilateral disagreement; it can affect global dairy markets, altering everything from price to international trade ties. How the EU and China handle this will influence the industry’s environment for years.

Industry Reactions: Voices From the Field

European dairy associations, such as Eucolait and Copa Cogeca, are outraged. They say the dairy industry is unjustly pulled into an unrelated labor conflict. What are their worries, and how do they intend to respond? Let’s look at their opinions.

Eucolait, the European dairy industry’s umbrella body, vigorously opposed the inquiry. They argue, “It is unjust that dairy will be sacrificed in an industrial fight over electric automobiles. The European Commission should do all it can to resolve this trade dispute as soon as possible [source]. Their biggest worry is the impact such investigations may have on the global dairy industry, possibly influencing pricing and trading routes.

In a social media post, Copa Cogeca shared similar sentiments: “This further escalation in the EU-China trade relationship and the continuous impact on our sector is very worrying.” They emphasize that European dairy farmers and agricultural cooperatives produce and export in complete compliance with EU and WTO standards. The association cautions against what they see as an unjustified challenge to the EU’s Common Agriculture Policy (CAP) and calls for a strong reaction from the European Commission to protect the industry’s interests.

These organizations are actively advocating for speedy and decisive action. Eucolait has encouraged EU officials to prioritize diplomatic resolution of the dairy trade problem, highlighting the historical significance of EU-China trade ties. Meanwhile, Copa Cogeca calls for extensive assistance measures to mitigate any adverse effects on European farmers throughout the probe.

Market Impact: Shifting Trade Dynamics 

China has traditionally been a major importer of EU dairy goods. Nonetheless, recent statistics show a significant decrease in these imports owing to increasing local production and a goal for self-sufficiency. This current probe into EU dairy subsidies may accelerate this trend, possibly reshaping global trade patterns.

The inquiry may encourage Chinese purchasers to seek dairy goods from non-EU suppliers, such as New Zealand, which now accounts for 51% of China’s dairy imports. Countries like the United States and other non-EU territories may experience an increase in their export quantities to China.

This investigation might result in a loss of market share for the EU, requiring European dairy farmers to seek new markets or strengthen partnerships with current ones. This transition might influence global supply chains, boosting competitiveness among dairy producers.

On the price front, the study might increase market volatility. Reduced demand from China may result in an excess of dairy products in the EU, putting downward pressure on pricing inside Europe. In contrast, nations that gain from filling the Chinese market vacuum may see price hikes owing to increased demand.

These changes may result in worldwide fluctuations in dairy product pricing for consumers and merchants. Market players must remain adaptable and sensitive to changing trade dynamics to reduce risks and capitalize on new possibilities.

As this inquiry progresses, the global dairy business confronts uncertainty and possible disruption, highlighting the interconnectedness of international commerce and the consequences of governmental choices.

Global Players: Who Stands to Gain or Lose? 

New Zealand and the United States are critical participants in China’s dairy import sector, with shares of 51% and 13%, respectively. With the European Union under examination, these nations may perceive an opportunity to increase their market presence. Could this move usher in a new era for the global dairy trade?

Any interruption in EU dairy imports might increase New Zealand’s export potential. According to Rabobank, China’s milk output will grow by 3.2% in 2024. However, this does not eliminate the demand for imported dairy products, exceptionally high-quality and specialized commodities [Rabobank Report 2024].

The United States, now China’s second-largest dairy exporter, may gain from the EU’s prospective trade restrictions. However, difficulties in trade dynamics, such as extra tariffs, logistical hurdles, and geopolitical conflicts, may impact how much of this market share can be successfully captured.

On the other hand, if channeled to different markets to avoid additional Chinese tariffs, an abundance of dairy goods from the EU might drive down world prices. According to the UK’s Agriculture and Horticulture Development Board (AHDB), China’s drop in powder imports has already impacted global markets [AHDB Report, 2024].

Ultimately, the global dairy trading picture might change dramatically. Nations such as New Zealand and the United States may benefit in the short term. Still, long-term stability will be determined by how international markets respond to these new trade dynamics.

EU’s Stand: Defending the Dairy Sector 

The European Commission has pledged to safeguard its dairy sector and maintain WTO compliance. But how successful will these methods be in combating China’s investigation? The EU’s case is based on establishing that its subsidies under the Common Agricultural Policy (CAP) and other national programs conform with international trade regulations. Furthermore, working with Chinese officials is critical to mitigating the damage.

Olof Gill, a Commission spokeswoman, said that the EU would “follow the proceeding very closely” and “intervene as appropriate” to preserve its interests. This aggressive attitude signals a strong defense, but the controversial nature of the investigation and prior trade friction may hamper settlement attempts. The EU intends to negotiate this complicated trade issue by preserving openness and open conversation while avoiding aggravating tensions.

The Bottom Line

This issue is more than simply a commercial conflict; it reflects deeper geopolitical concerns and emphasizes the interconnectedness of global commerce. Actions in one industry, such as electric cars, may have far-reaching consequences in other sectors, such as dairy. It also emphasizes the strategic use of trade instruments as leverage in more significant geopolitical issues and the fundamental need to adhere to international trade laws. As the situation evolves, firms, governments, and analysts must adjust to a world where trade policy plays a critical part in geopolitical strategy, possibly dictating future global trade dynamics.

Learn more:

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Bullvine Daily is your essential e-zine for staying ahead in the dairy industry. With over 30,000 subscribers, we bring you the week’s top news, helping you manage tasks efficiently. Stay informed about milk production, tech adoption, and more, so you can concentrate on your dairy operations. 

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