Dairy News // april 12, 2011
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news
US levy eyes ‘free riders’ ents such as casein and milk protein concentrates. The National Dairy Board will collect the money for nutrition research, consumer education, ‘issues management’ and building demand for dairy consumption.
SUDESH KISSUN
Full coverage of Dairy Business Conference
Pages 5, 7, 9
Farmers praised for helping keep Rotorua lakes clean
Page 14
Feedpad shelters allow herd sizes to increase
Page 28
News............................................................3-17
FONTERRA exports to the US will from August 1 attract a new levy championed by US dairy farmers but opposed by global exporters. The levy of 10c/cwt (45.5kg) on “Foreign dairy products profit all dairy-based imports into the US will help pay for dairy research and from our market but rely on Us consumption. dairy farmers to promote it.” US dairy processors and market– Jerry Kozak ers also oppose the levy, fearing a backlash from their export markets. NMPF chairman Jerry Kozak says when Fonterra says the levy will directly impact its cost of exports to the US, and sets a prece- the national dairy promotion programme dent when most countries are looking to open was set up in 1983, imports were a smaller portion of domestic consumption. trade barriers. “It is particularly hard to understand when But times have changed, he says. “Import shares have grown as the US itself is a net exporter of dairy products, and the third-largest dairy exporter in a portion of the entire domestic the world, and so has more to gain from re- US dairy market, which has also Jerry Kozak moving trade impediments than from impos- grown. “Foreign dairy products profit from our “US dairy farmers have spent billions ing them,” a Fonterra spokesman told Dairy over 27 years to build a compelling case for market but rely on US dairy farmers to proNews. The co-op says exporters in New Zealand, the consumption of cow milk in its various mote it. “In two successive farm bills Congress Australia, South America and the EU op- forms. “Importers of foreign cheeses, as well as has said it’s time to end this free lunch for pose the levy on the grounds it discriminates specialty ingredients, have benefitted from foreign dairy interests.” against imports. But US dairy manufacturers and marketAfter 10 years lobbying by the National the huge surge in per capita cheese consumpMilk Producers Federation (NMPF), the fi- tion. Yet not a single dollar has been spent by ers oppose the levy. The International Dairy Foods Associanal ruling was released last month by the US importers to help these efforts.” Kozak says dairy importers are “the clas- tion, representing processors, is concerned Department of Agriculture (USDA). It levies how other countries will respond. cheese and butter products, and dry ingredi- sic example of the free-rider phenomenon”.
Top 20% farmers show the way
Opinion..................................................... 18-19 Agribusiness............................................20-21 Management...........................................22-24 Animal Health......................................... 26-30 Animal Breeding..................................... 31-33 Machinery & Products.......................... 34-38
SUDESH KISSUN
NEW ZEALAND’S top 20% of
farmers do things differently and make $100,000 more annually than others. Data collected by DairyBase shows the top 20% of farmers operate leaner and smarter to ensure they drive operating expenses down and profits up.
Statistics show for every cent/kgMS saved on basic expenses, the average dairy farmer would add $1200 to their bottom line each year. DairyBase manager Adam Barker says operating costs have a huge impact on a farm’s profit. On average during the 2008-09 season, the most profitable 20% of New Zealand’s
dairy farms spent 84c/kgMS less on operating expenses than the country as a whole. “For the average New Zealand farm that’s worth about $800/ha or about $100,000 per year in operating profit. “What is important, and perhaps surprising, is what causes the gap between the average farms and the most profitable ones.
“The data show it isn’t region or farming system or herd size. “It is management within your farm system that makes all the difference. If you have a good understanding of your farm business, you can then target expenses to manage them down and drive profits up.” Full report on page 13.
1 ns 01 o ti 2 Michael Hutjens ra pril t s A i g Re e15University of Illinois, Urbana os cl Guest Speaker
Mike Hutjens was raised on a 313 acre, 70 cow Holstein farm near Green Bay, Wisconsin. In 1971, he earned his joint doctorate degree in dairy science and nutritional science with a minor in biochemistry at the University of Wisconsin, Madison. Since 1979, Dr Hutjens has been a member of the University of Illinois Dairy and Animal Sciences Departments as extension dairy specialist. He is the editor of the National Dairy Database and Illinois Dairy Report. Annually, he speaks at 90 to 100 meetings in Illinois and midwest states.
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He has spoken at conferences in 46 states, South Africa, Australia, Brazil, France, Argentina, Czech Republic, Ireland, Italy,
Dr Mike Hutjens Dairy Extension Specialist University of Illinois, USA
Japan, Korea, Mexico, New Zealand, Puerto Rico, Spain, China, Zimbabwe, and nine Canadian provinces. Mike writes feed columns for Hoard’s Dairyman, Dairy Today, Dairy Japan, Western Canadian Dairy Magazine, Wisconsin Agri-View, and Dairy Herd Management. Throughout his career Dr Hutjens has received numerous awards.
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In 2008, he was named “Service Person of the Year” by World Dairy Expo for his contributions to the industry and was recognized as a Fellow by the American Dairy Science Association.
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