World Cattle News:

[Mustang Sally Farm]

Feeding Strategies For Heifers
Replacement heifers are the future of the dairy herd, but very little research is focused on these animals.


Researchers at the University of British Columbia’s Dairy Education and Research Centre have recently completed three experiments designed to determine the effects of different methods of feeding weaned five to eight month old Holstein heifers.

For all three experiments, electronic feed bins were used that identify individual heifers housed in a group pen and record the timing and amount of feed eaten during each visit to a feed bin (Figure 1). Feed samples were also taken to determine if heifers preferentially selected certain components of a total mixed-ration.

 Figure 1: Electronically controlled feed bins used to study the feeding behaviour of growing heifers.
There are different strategies used to feed replacement heifers. One approach is limit feeding, where they are fed a restricted amount of a nutrient-rich diet. But limit fed heifers typically spend less time eating than they would under natural grazing conditions and spend more time standing (not eating) and may show higher rates of vocalisation associated with hunger. An alternative to limit feeding is to provide unlimited feed that is less nutrient-dense so that the heifers can eat as much as they like, when they like. A less nutrient-dense diet is achieved by diluting the diet with a low-quality feedstuff, such as straw.

In the first experiment we tested the effect of adding rye strawto TMR on the intake and behavior of heifers.After a week of adaptation, six heifers were fed three different diets for one week each.The three diets were the control diet (corn silage,grass silage and concentrates), the control diet plus 10 per cent straw and the control diet plus 20 per cent straw.

Adding straw to the diet changed the feeding behavior of heifers in several ways. Adding straw increased average meal times from 38 minutes on the control diet to 41 and 43 minutes, for 10 per cent and 20 per cent straw, respectively.This translated into more time spent feeding each day. Heifers consuming the 10 per cent strawration spent 13 minutes longer eating each day and those on the 20 per cent straw ration ate for an extra 19 minutes. Heifers fed with 20 per cent added straw also decreased feeding rate, meal size and number of meals consumed per day.

These changes in feeding behavior were due in part to an increase in time spent sorting. Heifers sorted their feed preferentially for concentrate and smaller particles (corn silage) and selected against long particles (straw).

Heifers consuming the control and 10 per cent straw diets showed similar body weight gains averaging 1.0 kg per day, but heifers on the 20 per cent straw diet gained 0.9 kg per day.

These results suggest that adding 10 per cent straw may be optimal in terms of reducing feed costs and satisfying natural feeding behavior without slowing growth.

Our second study focused on the effects of feeding methods on feed-sorting behavior in heifers. After a week of adaptation, six heifers were tested on each of the three treatments for one week each.Treatments consisted of two kg of grain concentrate and unlimited grass hay provided in three different ways; separately (grain and hay), as a top-dressed ration or as a total mixed ration (TMR).

When heifers were fed grain and hay in separate bins or the grain was top-dressed on the grass hay, heifers quickly ate the grain in a few large meals before they began eating the hay. When the two feed components were mixed together (i.e. TMR) the feed intake of each component was more balanced throughout the day and feed sorting behavior was reduced. Given the high forage component of growing heifer diets it is expected that feeding times will be longer than three hours per day. Moreover, given that heifers are fed and tend to eat at the same time,it is important to consider how much competition there is for access to feed and how this affects their feeding behavior. These factors were investigated in the third experiment.

 Figure 2. Hourly averages for feeding time (min) for growing dairy heifers fed noncompetitively (1 heifer/feed bin) or competitively (2 heifers/feed bin). Data show feeding times.
Thirty-six heifers were tested during two treatments. In the “non-competitive” treatment each heifer could access feed from a single feed bin.In the “competitive”treatment pairs of heifers had to each share a feed bin. The groups were balanced for age and weight.

Competition did not change feed intake or feed-sorting behavior but the treatment did alter feeding patterns, especially during peak feeding times. Figure 2 shows how competitively fed heifers spent less time eating, especially during peak feeding times in the morning and evening. Heifers in the competitive treatment spent about 15 minutes less time feeding each day, had nine per cent fewer meals per day and ate larger, longer meals. To maintain the same intake, they ate faster to compensate for the shorter feeding times in the competitive situation. The day-to-day variation in feeding behaviour also tended to be higher in the competing heifers.

In conclusion, providing the diet in the form of aTMR minimises sorting behavior by heifers, and diluting this with some low-quality feed such as straw increases feeding time. Providing adequate feed bunk space for each heifer is also essential as it will allow all animals access to feed at peak feeding times, when they are highly motivated to feed.

November 2011

[Mustang Sally Farm]

Friday, January 06, 2012

Philippines Improves Dairy Competitiveness

PHILIPPINES - The Philippines has partnered with the Babcock Institute for International Dairy Research and Development (IDRD) to upgrade farmers’ global competitiveness even as the country now produces Dutch-origin Gouda Cheese under a two-pronged livelihood creation and import substitution programme.


 ManilaBulletin reports that the Filipino dairy farmers linked with the Dairy Confederation of the Philippines have started collaborating for a training program with the IDRD in the University of Wisconsin (UW)-Madison to be able to acquire any global best practices in dairying.
 
The programme, supported with financing by the US Department of Agriculture and US dairy cooperative Land O’Lakes, sent in the second semester of 2011 eight dairy industry leaders to the IDRD.
 
The dairy training partnership programme included dairy herd improvement, marketing and value-added products, UW Cooperative Extension System, UW Center for Dairy Profitability, dairy cattle nutrition and feeding, Forage Center Activities, Basic dairy cattle health, Milk quality testing, and cow comfort and Facility Design and Biological Systems Engineering.
 
Government agencies have been supporting local dairy development as the sector has tremendous growth potential considering the huge market with the country’s dairy imports reaching $500 to $700 million annually.
 
A Gouda Cheese development programme is now under the Philippine Council for Agriculture Forestry and Natural Resources Research and Development’s (PCARRD) Technomart programme.
 
Here, dairy producers belonging to the Northern Mindanao Federation of Dairy Cooperatives (NMFDC) based at El Salvador City, Misamis Oriental are aided on raising their revenue as they produce Gouda Cheese, butter, lactoflan, and other flavored milk products.
 
With agencies like the National Dairy Authority (NDA) assisting in quality control of the dairy products, the Gouda Cheese of NMFDC has been purchased by the Dutch flag carrier KLM and has gained acceptance from recognised hotels.
 
“Fresh milk and other products produced and processed by NDA-assisted dairy farmers meet dairy industry standards. Customers-such as premium coffee shops and first-class hotels-are assured of quality items. Gouda cheese (Queso de Oro) has passed the discriminating test of cheese lovers,” reported NDA.
 
The NMFDC’s Gouda Cheese, stored at four to eight degrees centigrade for at least six months, have gained a market for its flavor. As storing process raises production cost, PCARRD has extended a help to the NMFDC through a biogas digester facility that has become a cheap source of energy for the storage facility. The power facility uses manure of dairy animals as gas source.
 
The programme has also identified a dairy expert called “Magsasaka Siyentista” (MS) to aid other dairy producers in adopting best practices. The MS, Crescencio Barros, has been able to prove that temperate purebreds Holstein, Freisian, Jersey, Guernsey, and Brown Swiss can thrive in the country.
 
The MS programme is helping other dairy producers address shortage of forage, produce concentrate feeds, and carry out rotational grazing.

[Mustang Sally Farm]

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Australian Genetics for UK Dairy Farmers

UK - Australian dairy cattle genetics are to be imported into the UK offering a range of options for dairy farmers including outcross and cross-breeding.
 

The genetics from Holstein, Jersey and Aussie Red bulls will help dairy farmers produce more milk from home grown forage feed and will produce cattle with a better stature that not only give a longer milk production but also have the benefit of producing dairy bull calves with a better meat conformation.
 
The genetics are being imported into the UK from Genetics Australia by Sterling Sires.
 
Farmers are looking for different genetics to stay in the herd book," said Sterling Sires director Paul Westaway.
 
He added that there are close similarities between production systems in the UK and many parts of Australia, where they are geared to producing as much milk as possible from grazing and conserved forages together with concentrate supplements.
 
"Typically, the daughters of GA sires are medium-sized with good style and robust functional conformation," Mr Westaway added.
 
He said that while they present pedigree breeders with new bloodlines, they also present an opportunity to cross breeders, because the date of the sires is fully traceable.
 
Apart from the Holstein and Jersey sires Sterling Sires will also be importing genetics from Australian Red bulls - a combination of Scandinavian Red and Australian Shorthorn bloodlines.
 
GA export director, Rob Derksen said that the potential for the GA lines existed because of the similarity between the dairy farming approached in Australia in states such as Victoria and in the UK.
 
He said the new genetics on offer presented farmers with traits that include a measurable profitability and good milk fat and protein, with good survival and longevity including overall type, pin set, udder depth and likeability, good daughter fertility, mastitis resistance, good liveweight and long milking span.
 
He said that whereas in the UK the average milking life for a cow was three lactations for Australian Holsteins it was 4.6 lactations and for Australian Jerseys it was 4.3. The average lactation was over 300 days.
 
The better conformation with a shorter sturdier and broad animal also meant that there was a better use for the bull calves within the meat industry.

[Mustang Sally Farm]

Unwanted Fungal Growth on Dry-cured Meat Products

The growth of yeast and mould fungus often poses a threat to the quality of dry-cured meat and is a problem facing producers all over the world.

 
Penicillium spp. credit: Dereje Asefa
 
Fungal growth can lead to bad quality products, increased production costs and health issues in consumers. In Norway, there is a low incidence of fungal growth on dry-cured meat products compared with products from Southern Europe. But producers still want to find out more about which fungi grow on foods of this kind and about their effect on the food's quality and safety.
 
The research project is the result of a collaboration between a dry-cured meat producer, The Norwegian Veterinary Institute, Nofima, Animalia and The Norwegian School of Veterinary Science and has provided new knowledge and recommendations about how the industry can combat these problems.
 
The aim of this doctoral study was to identify the fungi that grow on Norwegian products, appraise their significance, chart sources of contamination and propose measures. The study began by identifying mould fungus associated with Norwegian dry-cured meat products. Moulds of the genus Penicillium predominated in the trials carried out on these products. Most of the species of Penicillium that were found are capable of producing fungal toxins. When they develop on dry-cured meat products, they can potentially affect and reduce the safety and quality of the products.
 

Fungal growth dynamics
 
Dereje T. Asefa's doctoral project involved studying cured mutton and two cured ham products made by a Norwegian cured meat manufacturer and taking samples throughout the whole production process in order to gain insight into the growth dynamics of the fungi.
 
In this way, Asefa managed to identify sources and factors contributing to fungal growth on the products and was able to suggest preventive measures. Of a total of 901 fungal isolates, 57% were mould fungi, while 43% were yeasts. Yeasts predominated on the surface of the meat products, whereas mould predominated amongst the environmental samples.
 
The diversity of yeast species was greatest before salting, where the yeast fungus Candida zeylanoides was most prevalent. The latter is a species which can under certain circumstances lead to disease. The meat samples taken on arrival at the factory were contaminated with this yeast and the source of contamination was outside the production plant.
 
But after salting, and especially after smoking, the yeast fungus Debaryomyces hansenii fortunately took over, to the detriment of C. zeylanoides. Yeasts were discovered in 1/3 of the environmental samples. D. hansenii was not detected in the air, but predominated in the samples taken from machines and production equipment.
 

Twice as many fungal species in the environment as on the products
 
Mould fungi were detected in the environmental samples taken throughout the production process. Fungal growth on the products themselves was however not detected until the beginning of the drying and maturation process, gradually increasing in numbers thereafter. Of the 39 fungal species isolated, the genus Penicillium predominated. The quality of the air inside the plant was worse than that of the air outside and had a higher concentration of most of the species of mould fungi that were found on the dry-cured meat products.
 
Penicillium was discovered both on the products and in the production environment, but less than half as many fungal species were detected on the products themselves as in the environmental samples. At the species level, P. nalgiovense was the most prevalent – a species that is known to be able to form penicillin, but no penicillin was detected when the fungus grew on meat.
 

Sources of contamination
 
The results of the study show that the main sources of contamination from fungi in the finished products are to be found within the production plant. Local strains of P. nalgiovense and D. hansenii were found in the production plant and preventive measures must focus on these two species.
 
The charting process uncovered three important elements in the production chain which create favourable conditions for the growth of fungi: the way the meat is pressed, the quality of the air and the sorting process. Measures involving both technical and organisational solutions have been proposed.
 

Hazard analysis and critical control point (HACCP)-plan
 
The fact that the yeast fungus D. hansenii and the mould fungus P. nalgiovense predominate towards the end of the production process is considered to be a positive development, since both these species are used as starter cultures for improving the sensory quality of dry-cured meat products in Southern European countries.
 
These fungi are known for their ability to oust other microorganisms, both toxigenic and pathogenic, and therefore help to improve food safety. But the study also shows that pathogenic yeasts and mould fungi capable of producing fungal toxins can grow on these products and have a potentially detrimental effect on food safety.
 
All producers should therefore introduce measures to safeguard food safety in this respect. A HACCP plan based on the project's findings was drawn up for the company involved in the study. The plan includes measures to combat both pathogenic yeasts and toxigenic fungal species.
 

December 2011

[Mustang Sally Farm]

Wednesday, January 11, 2012

CME: Cattle Futures Down, Concern Over Demand

US - Live cattle futures were modestly lower on Monday as market participants continue to fret about the state of beef demand, writes Steve Meyer and Len Steiner.
 

Beef supplies at the moment appear to be at or above year ago levels and there is some concern about the ability of the market to absorb higher supplies at current price levels.
 
The choice beef cutout closed on Monday at $189.6/cwt., about $4.5/cwt. or 2.3 per cent lower than on 3 January but still some 13.3 per cent higher than the same period a year ago.
 
While choice beef has shown some weakness, which is not all that unusual following the seasonal decline in some popular holiday features, the select cutout has held up well. On Monday the composite select cutout closed at $179.5/cwt., about the same as last Tuesday and 11.3 per cent higher than the same period a year ago.
 
In the last two years, both the choice and select cutout have trended higher into mid January, pulled back some into late February and then surged higher into March and April as retailers and foodservice operators prepare for the start of the grilling season in May (there is some lag between the time wholesale orders come in and when the product will be marketed).
 
It is still too early to make any pronouncements about trends given the few data points for the year but this is an issue that will be watched closely given the lofty price levels for a number of beef items .
 
Our report yesterday showed weekly slaughter tabulations but, as usual, the year to year comparisons for the holiday weeks are somewhat skewed and tell us little about the general trend in terms of steer, heifer and cow slaughter.
 
The attached charts should be familiar to regular readers. They track a rolling seven day total of US cow slaughter and compare it to slaughter data for same timeframe during the previous two years. After the normal holiday break, both fed and non fed cattle slaughter is now above year ago levels.
 
Based on the preliminary slaughter data, US steer and heifer slaughter for the seven days ending 9 January was 533,000 head, 8.7 per cent higher than the same period a year ago. Cow and bull slaughter during the same period was estimated at 151,000 head, 3.4 per cent higher than the same period a year ago.
 
The big cow slaughter numbers are somewhat surprising given how aggressive producers were in liquidating the herd last fall. With improving feed supplies and strong calf prices, there is an expectation that cow slaughter will slow down in the first half of the year.
 
It is possible that the surge in cow slaughter will be short lived, driven in part by “tax cows” (cows that were not sold until the start of the year so as not to count in the past tax year). Prices for US lean grinding beef are currently past the $2 mark and should cow slaughter start to dry up, we could see notably higher ground beef prices in Q1.

[Mustang Sally Farm]

Beef Demand Is Key To Cattle Prices
US - Beef and cattle prices increased to new record levels in 2011 and are expected to push even higher in 2012, writes Derrell Peel, Oklahoma State University.



Several years of declining cattle inventories culminated in late 2011 with a projected 3.0 per cent decrease in slaughter that combined with lighter carcase weights to result in a 3.8 per cent less beef in the fourth quarter of 2011 compared to a year earlier.

For 2012, slaughter is forecast to drop another five plus per cent and, even with an expected increase in carcass weights, will result in a nearly four per cent drop in beef production for the year. Decreasing beef production ensures that wholesale and retail beef prices will be pushed even higher in 2012.

Cattle supplies that are even tighter, on a relative basis, likewise ensure that fed and feeder prices will be pushed to the limit and maintain strong negative pressure on feedlot, packing and retail margins. Weather conditions that determine whether the drought in the South continues or abates will determine whether feeder cattle supplies remain merely very tight or move to extremely tight should heifer retention accelerate in 2012.

While supply is clearly the main driver pushing cattle and beef prices upward, it is consumer beef demand that will determine just how far prices will go. It is not really a question of whether prices will be higher but rather a question of how much higher.

Ignoring trade for a moment (though it continues to play an increasingly important role in the US beef industry), it is domestic demand that is the biggest unknown in 2012. Consumer demand for beef (or indeed any product) is a combination of "willingness" and "ability" to purchase a given quantity of a product at a given price.

Typically, when nothing else changes, consumers will pay higher prices when quantity is less and will only purchases greater quantities at lower prices. Declining beef production in 2012 already suggests higher prices for this reason.

However, other factors can change that affect the overall level of demand. Among the "willingness" factors for beef is the underlying desire that consumers have for beef or what are commonly referred to as the preferences for a product. There is no significant indication that consumer preferences for beef have declined. Even as consumers have been forced to adjust spending patterns in recent years (discussed below), beef preferences remain strong.

However, beef is not one product but many different products and there are questions of whether consumer preferences have changed in terms of the mix of beef products desired. Steak, though still popular, may be viewed now by consumers as more of a special occasion meal, while ground beef demand continues to grow, including demand for premium ground beef products. It will take time before the extent and permanency of these apparent changes in preferences is determined.

Other short run factors may also affect willingness to purchase beef products. Consumer decisions are driven by value, which is a combination of preferences and price of a product relative to other products that may be substitutes. In the case of beef, these are other meat products, mostly pork and poultry. Therefore, beef demand at any point in time, will be determined in part by the prices of pork and poultry relative to beef.

In 2011, pork prices, like beef, moved to new record levels thus maintaining a relative balance between beef and pork prices. Through the first 11 months of 2011, retail beef and pork prices both increased about 10 percent year over year. During the same period, retail broiler prices increased only about 2 percent. This is another sign of strong beef preferences relative to chicken. Anticipated decreases in broiler production in 2012 should support broiler prices and provide additional support for higher beef prices.

Since 2008, the "ability" part of beef demand has played a bigger role in beef demand than for many years prior. The recession of 2008 and 2009 caused significant adjustments in consumer spending and may have permanently changed spending patterns. Macroeconomic measures provide a general backdrop for consumer spending ability.

Post-recessionary GDP growth in 2010 was followed by weaker than expected growth in 2011in the US economy and many other countries as well. The tsunami in Japan and the continuing fragile economic situation in the Euro area limited global growth. General expectations for 2012 are for continued anemic macroeconomic performance in the US and most major developed and developing countries.

In the US, unemployment, though down from recessionary peaks, remains stubbornly high with little decrease through most of 2011. Inflation-adjusted personal disposable income decreased slightly from 2010 levels in the second and third quarters of 2011. Data for the fourth quarter are not yet available.

However, personal savings rates, which jumped sharply during and immediately after the recession, fell back to a more modest level in late 2011 and likely supported additional consumer spending. Anecdotal indications of strong holiday spending suggest that consumers have adjusted to the post-recession environment.

Recent stories of large winter crowds at vacation venues such as Disney World are indications that consumers are moving past recession-induced retrenchment to more typical consumption, albeit with continued belt-tightening. Beef middle meat prices improved noticeably in the last quarter of 2011 and the Restaurant Performance Index, which has improved erratically during the recovery, moved towards a strong finish for the year with the latest November data.

Cattle and beef prices will be higher in 2012 but just how much higher depends on consumer demand. Continued fragility of the US, as well as the global, economy make demand the biggest question mark for the beef industry in the New Year. Though consumer preferences for beef remain strong, they may have changed.

Consumer reaction to higher prices may result in additional changes in demand for middle meats relative to end meats and for away-from-home versus at-home beef consumption. In the absence of major US or global macroeconomic weakness, beef demand is sufficiently strong to support higher beef and cattle prices in 2012 but exactly how that demand will be manifest across different cuts and qualities of beef remains to be seen.

January 2012

[Mustang Sally Farm]

Wednesday, January 11, 2012
Calls To Halt EU Live Exports To Turkey
EU & TURKEY - Investigations into live animal transport from the EU to Turkey have revealed a crisis at the border as exports to Turkey in 2011 rocketed to over one million animals. Animal welfare organisations are now calling for EU exports to Turkey to be suspended.
 

Three European animal welfare organisations, Compassion in World Farming, Eyes on Animals and Animal Welfare Foundation, carried out three investigations in 2011 on the border between the EU and Turkey.

What they found confirmed their findings from a similar investigation in October 2010. Out of 158 vehicles checked at the border, an alarming 67 per cent broke the EU’s regulations on the welfare of animals during transport.

With this in mind they are pushing for EU exports to Turkey to be suspended.

Speaking at a press briefing today Andrea Gavinelli from the European Commission (DG SANCO) said that it was not possible for the Commission to impose this unilaterally.

Responding to a question on what the Commission is doing, he said that the Commission will try and meet with member state authorities and gather all the players around the table soon.

He added that this issue had already been raised in the standing committee and that the meeting with member states would take place over the next month, no later than March.

What are the issues?

The problems are compounded by delays often lasting hours, sometimes even days at the border, caused by defective paperwork and strict import checks. In one case, two trucks carrying Greek sheep were stuck at the border for four days. In all, 14 of the sheep died as a result of this prolonged delay.

Peter Stevenson, Compassion in World Farming’s Chief Policy Advisor, says: “This inhumane trade has grown very quickly and, with over one million sheep and cattle exported to Turkey in the last year, is now one of the world’s largest live export trades. Packed into overcrowded trucks, the animals suffer terribly during the long journeys and the protracted delays at the border. They become desperate with thirst and so hungry that some even eat their own filthy bedding. The EU should halt this callous trade in living creatures.”

The sheep and cattle, including youngstock, come from a number of EU Member States including Hungary, Bulgaria, Austria, Greece, Lithuania, Latvia and Estonia. The trucks carrying the animals are from these countries but also from the Netherlands, Germany, Poland, Romania and Croatia.

Once the animals make it through the border, their ordeal is not over. Many face a further gruelling journey through Turkey to as far away as Erzurum in the east of the country, around 1,500 kilometres from the border.

Some of the major problems are:

Severe overcrowding; insufficient headroom;
inadequate ventilation (in the summer temperatures as high as 58°C were recorded inside the trucks);
and lack of water.
Most of the animals are being sent for slaughter though some of the cattle are going for fattening or breeding. Slaughter conditions in Turkey are often inhumane. Animals are hoisted up by their legs to the killing line where their throats are cut while they are fully conscious and they are left to bleed to death. Suspending conscious animals upside down by their legs is in breach of the international standards of the OIE – the World Organisation for Animal Health – of which Turkey is a member.
It is ethically unacceptable for the EU to send animals to a country which regularly ignores international standards on welfare at slaughter.

Lesley Moffat, Inspector and Director of Eyes on Animals, says: “Should we not be able to stop this inhumane trade, then we call for the authorities and traders to liaise so that a stall at the border can be built immediately. At the moment, animals blocked for days at the border, or animals arriving with broken legs or other painful injuries, cannot be unloaded.

"They are simply left on board, facing possible trampling, dehydration and even death. After inspecting animal transports for 10 years, the cases here are the saddest and most frustrating I have seen.”

After each investigation, the charities wrote to the main countries involved in the trade but saw no improvement in the dire situation at the border in 2011, as the numbers of animals crossing it in trucks continues to rise.

The three organisations are calling on the European Commission to:

suspend the export of live animals to Turkey in order to prevent further suffering by EU animals


commence infringement proceedings against Bulgaria and Hungary for their systematic failure to enforce EU law on the protection of animals during transport


liaise with the authorities of Turkey and the EU Member States involved in the trade to find ways of bringing the lengthy delays at the border to an end.
Iris Baumgärtner, Animal Welfare Foundation´s project manager, says: “We witnessed bulls with broken legs and dying sheep in vehicles that had just passed the Turkish veterinary inspection and were cleared to be transported to their destination in Turkey. It seems Turkey cannot guarantee the most simple welfare standards for animals at its border: feed, water and rest and emergency killing or euthanasia for injured and sick animals.”

[Mustang Sally Farm]

Thursday, January 12, 2012
India World Leader In Milk Production
INDIA - The National Dairy Development Board’s (NDDB) Annual Report for 2010-11 has conveyed that India continued to be the largest milk producing nation in 2010-11. The country’s estimated milk production for 2010-11 is 121 million tonnes, close to 17 per cent of world milk production.


During the year, dairy cooperatives collected 9.6 million tonnes of milk, a growth of around one per cent over last year. Liquid milk marketing by cooperatives increased by around four per cent over the previous year and was about 8.2 million tonnes in 2010-11.

Explaining that higher GDP growth, increased incomes in rural areas through schemes like MGNREGA and a growing population are contributing to a rapidly growing demand for milk, Dr Amrita Patel, Chairman, NDDB said: “Increasing domestic milk production at the pace required through adoption of a scientific approach by improving the genetic potential of milk animals and feeding them a balanced diet, to ensure they produce milk commensurate with their genetic potential, is the only way to meet the surge in demand.

"It is therefore imperative that a scientifically planned multi-state initiative is launched and NDDB has therefore prepared a National Dairy Plan (NDP) with a fifteen year horizon."

“NDP has been appraised by the World Bank and approval for the project is expected shortly," she added.

Additional funding for activities that are commercial in nature such as plants for milk processing and manufacture of cattle feed, are being explored with the International Finance Corporation (IFC), an affiliate of the World Bank.

The National Dairy Plan aims at contributing to increasing milk production by increasing productivity in existing dairy animals through a focused and scientific process for breeding and feeding.

The first phase of the NDP is proposed to be implemented over a period of six years and envisages an investment of around Rs. 2000 crore for activities ranging from:

Production of high genetic merit bulls,
Production of disease free quality semen,
Implementing a pilot to promote a model for viable doorstep AI delivery services following prescribed Standard Operating Procedures,
Ration Balancing Programme,
Extension and demonstrations for fodder development,
Interventions to strengthen village based milk procurement systems,
ICT for breeding and nutrition services – based on ear tagging of animals and capturing and transmitting data from the field to central database servers for monitoring, analysis and feedback,
Augmenting systems in the villages for procurement of milk in a fair and transparent manner,
Project learning and monitoring and capacity building and training.
The project is proposed to be carried out by End Implementing Agencies (EIAs) including State Cooperative Dairy Federations; District Cooperative Milk Producers Unions; Producer Companies and State Livestock development Boards that meet the criteria for each activity and in states that have agreed to put in place the necessary regulatory and policy measures to create an enabling environment for the successful implementation of the project.

During 2010-11, NDDB continued to provide a range of technical services by undertaking numerous engineering projects, implementing programmes to produce high genetic merit bulls, managing two of the largest semen production stations that together produce about 18 per cent of the total frozen semen doses in the country, facilitating pilots for Ration Balancing Advisory Services, R&D activities related to animal vaccines and diagnostics, methane emission reduction through balanced feeding and solid state fermentation technology and training initiatives focused on equipping dairy professionals with the latest technology and hands-on practices and capacity building of milk producers, staff and directors on the boards of milk unions on recent developments in the dairy sector.

[Mustang Sally Farm]

Friday, January 13, 2012
CME: The Future of US Beef Exports

US - As we start the new year, the future of US meat exports is top of the mind for many in the industry, writes Steve Meyer and Len Steiner.
 

In 2011, we saw significant price appreciation for a number of beef, pork and chicken items, driven in part by strong exports to both traditional and new markets.

Will exports hold up? If yes, what will sustain ever expanding shipments? And if not, what will be the main risks for a reversal?

Today we will focus on beef exports and touch on pork and poultry on Monday once the monthly export data is released.

The top chart shows the growth in US beef exports in 2011. The data is based on weekly shipments, product weight basis, through the end of the year. For the year, exports of US beef muscle cuts (this does not include cooked beef and offal) rose 27 per cent compared to the previous year.

Four countries, Korea, Japan, Canada and Russia, accounted for about 75 per cent of the overall growth in US beef exports. We think the growth in shipments to these markets is far from reaching a saturation point. In the case of S. Korea, the free trade agreement as well as limited growth in their domestic production will sustain demand for US beef.

Australia is still the top supplier of imported beef in the S. Korean market but herd rebuilding in Australia will limit product availability and will likely provide opportunities for further expansion of US beef exports. Also, current US beef exports to Korea still remain well below the volumes that were shipped prior to the outbreak of BSE in North America (see bottom chart). Japan constitutes an even more important growth market for US beef.

At the moment, the key factor impeding growth is the requirement that US ship only beef from cattle that were 21 month or younger at slaughter. There are plenty of rumors that this requirement may be changed to 30 month or younger in 2012, and if that happens, it will provide opportunities for even higher beef exports to Japan. As with Korea, Australia remains a top supplier of imported beef to Japan but supplies from there will be constrained due to herd rebuilding. The key risk to US beef exports remains a sharp appreciation in the US currency.

Keep in mind, that even as the US dollar has gained ground recently, it still remains relatively weak, particularly vs. currencies of our top beef markets. The only scenario we see for a sharp appreciation in the US currency is if the Euro breaks up, leading to an inflow of capital into US dollar denominated assets.

The preponderance of evidence at this point is that the Euro zone will be able to muddle through and further improvements in global economic growth will spur demand for US beef.

Finally, it is important to keep in mind the global beef supply picture. Key world beef exporters, Brazil, Australia, Argentina, Canada, are in herd rebuilding mode. While this will pave the way for higher beef supplies in 2013 - 2016, the coming year will likely continue to see limited global beef supply availability. Beef demand in emerging countries will likely continue to increase and, in the short term, the US remains a favored, and relatively competitive, beef supply source.

[Mustang Sally Farm]

Friday, January 13, 2012

Nestle Develops its Largest Milk District in China

CHINA - Nestle is to invest in developing its largest milk district in China. This will help the country deliver high quality and fresh milk.


Mr Mao Chen, Mayor of Shuangcheng, and Mr Zhan Yudong, Director of Production Technology of Nestle in Greater China Region, signed a Memorandum of Understanding on behalf of the two sides.

The MOU will urge both sides to jointly develop the modern dairy farming and ensure the milk district, which is already Nestle's largest fresh milk supply base in China, becomes a leading milk district under the most professional management and the nation's benchmark for best practice in dairy farming and management.

Under the agreement, a total investment of RMB 2.5 billion will be made in the milk district over the next five years through a partnership between Nestle, the local government, investors and farmers. The partnership will promote high quality and efficient dairy farming methods using modern technology and professional knowledge.

The agreement will help all the farmers working alone or on small farms in the milk district to be relocated to professionally managed dairy farms or large scale pastures, and will help those who own larger farms to scale up their facilities and use more modern practices. To this end, Nestle and the Shuangcheng government have invested RMB 10 million to purchase 1,000 sets of milking machines.

Mr Roland Decorvet, Chairman and CEO of Nestle China said: "The plan will continue to make Shuangcheng the nation's benchmark for high quality and reliable fresh milk. It also underscores Nestle's commitment to grow its dairy business in China in a long-term and sustainable way. The Shuangcheng government highly commended the long-term cooperation between the two sides and said will that the government would do its share to work with Nestle and the partners to accelerate modern dairy development

[Mustang Sally Farm]

Monday, January 16, 2012
NZ Beef Exports Lower In 2011

NEW ZEALAND - New Zealand (NZ) beef exports in 2011 were down nine per cent year-on-year, at 330,999 tonnes swt, the lowest calendar year total since 2002 according to the NZ Meat Board.

According to Meat and Livestock Australia, this drop was largely driven by an estimated six per cent dip in production and the strength and volatility of the NZ$ throughout the year.
 
This drop was largely driven by an estimated six per cent dip in production and the strength and volatility of the NZ$ throughout the year.
 
Despite falling five per cent year-on-year, the US remains the largest export destination for NZ beef, reaching 148,963 tonnes swt to capture 45 per cent of the market share.
 
Most of this beef is bull and cow manufacturing beef for grinding. Exports to South East Asia (37,268 tonnes swt) and Japan (29,194 tonnes swt) also fell by 29 per cent and 10 per cent, respectively.
 
Indonesian permit issues and the natural disasters in Japan were important factors in these areas. Beef shipments to Korea increased three per cent to reach 33,526 tonnes swt in 2011.
 
NZ beef exports for the month of December were down 46 per cent year-on-year, sitting at 18,500 tonnes swt. Demand is expected to increase in January as a result of strong promotional activity in the US in the lead up to the Super Bowl in early February (NZX Agrifax).

[Mustang Sally Farm]

Tuesday, January 17, 2012
Ron Plain: Cattle on Feed Bucks Forecasts

US - USDA's December cattle on feed report said both November placements and marketings were higher than expected. USDA said November placements of cattle into large feed yards (over 1,000 head capacity) were 4.1 per cent higher than in November 2010, reports Ron Plain, University of Missouri.

 
Ron Plain
 
The average of pre-release trade forecasts was for November placements to be down 0.4 per cent. November placements were the highest of any November since 2007. Thus far this year, placements have been above year-earlier levels in 7 of the 11 months.
 
USDA said marketings of fed cattle from large feed yards during November totaled 1.77 million head, down 0.2 per cent compared to November 2010. The trade forecast November marketings to be down 1.5 per cent.
 
The total number of cattle on feed at the start of December was up 4.0 per cent compared to December 2010. The pre-release survey of forecasts predicted an increase of 3.7 per cent. The number of cattle on feed has been above the year-earlier level for the last 19 months. The December inventory is the highest on-feed number for any December since 2007.
 
The number of cattle placed on feed weighing less than 600 pounds was up 20.8 per cent from last November. Placements of feeders weighing 600 to 700 pounds were down 15.4 per cent; placements weighing 700 to 800 pounds were up 0.3 per cent, and placements weighing more than 800 pounds were up 10.8 per cent compared to a year earlier. The calculated average weight of cattle placed on feed during November was 4.1 per cent higher than in November 2010.
 
The average retail price for choice beef during November, $5.001 per pound, was up 6.8 cents from October, up 51.7 cents from November 2010, and record high for the fourth month in a row. Slaughter steer prices averaged $123.50/cwt in November, also a record.

[Mustang Sally Farm]

Thursday, January 19, 2012
Beef Prices Increase As Shortages Continue

IRELAND - Despite the attempts of factories to shave up to 5 Euro cents off quotes, beef prices have again been strong in the past week due a shortage of stock, according to the Livestock Price Coordinator for the Irish Cattle and Sheep Farmers’ Association (ICSA).


John Cleary also said that farmers should now be prepared for tougher negotiations from factories but those willing to do us will get the best prices.

For a good mix of steers, the base price being quoted is €4.10 – 4.15/kg, a further increase of 10c from last week. Factories are quoting €4.20- €4.30/kg for heifers, a slight increase on last week For a mix of U and R grade bulls, the base price is also €4.20/kg, roughly the same quotes from last week Base price quotes for cows stand at €3.35-€3.65/kg. This is a rise of nearly 20c, a significant rise for cows for this time of the year.
 
Mr Cleary said: “There had been significant talk over this past week that factories had been doing all they could to pull prices by as much as 5c this week but this failed to materialise due a shortage of stock once again coming into the factory the floor.

"The return of the marts in the past couple of weeks has resulted in a surge in prices being paid at some ringsides by factories for stock but they are still desperately trying to locate stock and this looks set to be the case for the foreseeable. Farmers with quality stock should be prepared to bargain hard with factories for prices if the rumours of price pulling continues.”
 
Scarcity was the explanation given for a jump in prices last week for sheep but further shortages has resulted in another 10c increase. Prices for lambs up to 23.5kg are €5.30/kg. Ewes are being quoted €3.20/kg.

[Mustang Sally Farm]

Friday, January 20, 2012

Positive Outlook for Beef in 2012

GLOBAL - This year will be another year of record high cattle and beef prices with diverging impacts for various segments of the industry. Again Brazil will be the only country to see production of beef increase, according to analysis from Rabobank.


Ranchers will benefit from scarce cattle supplies while feedlots and packers face challenges.
 
Tight cattle supplies—as result of either weak rancher margins over the past years or weather-related problems—will push power up the value chain. Ranchers are set to enjoy some of their best margins in years. Conversely, feedlots and packers should be concerned about both higher prices and limited availability of inputs exacerbating low capacity utilisation problems and causing margin compression.
 
Beef processors’ ability to pass through pricing to consumers will be tested in 2012. Global economic growth has been inconsistent, with growth slowing in many markets. In the world’s largest consumer markets, Europe and the US, growth has been particularly slow. Although not identified yet, there is a limit to what consumers will pay for retail beef.
 
Additionally, the ongoing debt crisis in Europe presents a unique tail risk for some beef processors. If the banking system becomes stressed to the point at which it has to withhold credit, cash- strapped beef companies will struggle. In conjunction with margin compression, possible credit strains could set the stage for accelerated merger and acquisition activity in the beef industry. Signs of this were seen in Q4 2011, with several transactions announced in Europe and in the US.
 
Although the big picture remains challenging for certain segments of the industry, the outlook for beef companies does look positive for 2012 in some countries. Among them, Brazil stands out. Of the top producer countries, Brazil is the only one that is expected to show a combination of increased supply of animals for slaughter, robust domestic demand and a growth in exports (see Figure below).
 
This more favourable scenario for companies operating in Brazil should be viewed as an opportunity for the sector to generate better results and deleverage balance sheets, thus mitigating possible credit-related risk.

[Mustang Sally Farm]

Tuesday, January 24, 2012
Threat from Cheap Imports Falling
SCOTLAND, UK - The threat of cheap red meat imports undercutting prices is reducing as a result of the prevailing economic climate.


Latest analysis of global meat trends by Quality Meat Scotland has shown that increasing world demand and currency fluctuations outside Europe, means imports from areas such as South America and Australasia are losing their competitive edge on the price front.

Stuart Ashworth, Head of Economics Services at Quality Meat Scotland, presented the results of the analysis at this week’s QMS marketing conference.

He said: “With the population of the UK expected to grow by eight per cent by 2020, we’re going to be looking at a rise in demand for meat within the UK. When we take into account our growing export activity this means we will be selling into, and buying from, an increasingly tightly supplied global market.

“Most of our beef and pork imports come from within the EU, and most of our lamb imports are from New Zealand and Australia. Both have seen declining stock numbers, whereas global demand for meat is set to continue apace.”

Studies by the Food and Agriculture Organization of the UN predict that demand for beef is set to rise by 58 per cent by 2050, with sheep and goat meat up 78 per cent and demand for pig meat up by 37 per cent. While the growth will be seen in developed countries, most of the growth is set to be driven by the emerging prosperity in developing countries.

Mr Ashworth said: “With the Euro in the doldrums, the currencies of our traditional trading partners, such as Brazil and New Zealand, are appreciating strongly, and this, coupled with tight supplies, is leading to global prices converging with European prices.

“Although the market is global, it is concentrated in a few large producers. Australia and Brazil alone account for more than a quarter of the beef trade, and together New Zealand and Australia cover more than two thirds of global lamb exports.

“With Australia a major supplier in the middle east and New Zealand having recently brokered a bilateral free trade agreement with China, it means that although the EU will always be a major customer, there are a number of other countries looking for a bigger share of what is a fairly static supply.

“Aside from potential changes to the CAP and international trade deals, the current range of socio-economic changes happening throughout the world look set to underpin strong prices in the medium to long term.”