Germany: ife data

In Germany in February compared to January 2022 the raw material or compound value of milk at farm increased 2.0 eurocent to 56.3 eurocent per kilogram milk with 4.0 percent fat and 3.4 percent protein (exclusive VAT). This is 23.4 eurocent more than in the same month one year before. The highest future price of milk for the next 18 months on the Kieler Börsenmilchwert European Energy Exchange is the price for May 2022 at 63.7 eurocent. The lowest future price is the price for September 2023 at 57.8 eurocent.

Germany: EEX – partnership with Fonterra and NZX

The Germany headquartered European Energy Exchange (EEX) that offers among others trading in agricultural futures has agreed a strategic partnership with New Zealand’s dairy cooperative Fonterra and New Zealand’s Exchange (NZX) to each take one third ownership stakes in Global Dairy Trade (GDT).

The Netherlands: research on methane production

In Holland, research by Wageningen University & Research shows that the volume of methane that cows produce when digesting grass silage is determined by the proportion of cell walls or NDF (neutral detergent fibre). The more NDF the higher the emission. With maize silages also the starch content is important. The less starch the lower the emission.

The Netherlands: RFC lost member dairy farms

The Holland headquartered dairy cooperative Royal FrieslandCampina lost on January 1, 2022 a number of 239 member dairy farms that went to another dairy, milk buyer or milk processor. Together they accounted for 272 million kilogram of milk supply on annual base. In 2021 RFC’s total intake of milk decreased 3.2 percent to less than 10 billion (10*9) kilogram.

The Netherlands: Royal DSM commercializes methane-reducing feed additive

 

The Holland headquartered Royal DSM, has got approval from the European Union to commercialize its methane-reducing feed additive for ruminants Bovaer. According to DSM just a quarter teaspoon of the 3-nitrooxypropanol containing Bovaer per cow per day suppresses the enzyme that triggers methane production in a cow’s rumen and consistently reduces enteric methane emission by approximately 30 percent for dairy cows and even higher percentages (up to 90%) for beef cows.

United Kingdom: report on growth opportunities for dairy

In the United Kingdom there are enormous growth opportunities for dairy, according to a report of Kite Consulting. Given the UK’s strong track record in animal welfare and traceability, and its activity to reduce carbon emissions across dairy production and processing, and when the processing sector innovates, UK farmers have access to growth markets. This also because of UK milk prices and milk returns have become low compared to world market prices, particularly in the liquid sector. UK dairy processors can improve their returns by accessing growing global markets, which was not an option in the past. This introduces a new dynamic in the dairy industry, particularly in the liquid sector, where the price differential is greatest. If UK retailers want to secure long-term liquid milk supply from supply chain partners that are committed to fulfilling their decarbonisation objectives, then they need to act to ensure that they are providing a fair market return. Otherwise it seems unlikely that liquid milk as a retail loss-leader in the UK will remain viable, according to Kite.

Russia: European dairies stop activities

Several European dairies stop their activities in Russia because of the Ukraine war. Finland’s largest dairy cooperative Valio stops all its business in Russia. Valio has one cheese factory near Moscow and contract manufacturing partners and sales offices in St. Petersburg and Moscow. Valio employs about 400 people in Russia. The Denmark headquartered dairy cooperative Arla has initiated preparations to suspend its business in Russia. This will cover both its local operations and imports, which were much reduced by the embargo put in place in 2014.