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UK PUNCHES BELOW ITS WEIGHT |
Who would believe that the UK is the third largest milk producer in the EU and number eight in the world?
This is our position according to the recently published 2007 DairyCo ‘Pocket Book.’
While other nations around the globe increase output, the UK plummets to new depths. And it is set to get worse. High stock prices, a worsening relationship between input costs and milk price, much needed capital investment on many holdings – all are encouraging an exodus from production. Every time a herd is dispersed, at least 20 per cent of the cows are slaughtered out.
©2008 The Alternative Semen Company LtdUpdated: 14/07/2008
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Feed prices forecast to ease in autumn |
‘Wheat’s biggest bull market could be about to end badly’
‘Wheat’s biggest bull market could be about to end badly’ proclaimed Money Morning last Wednesday.
In the USA the bushel price has soared 400 % since late 99 – a rate never seen before. All grains are depicted as ‘reminiscent of uranium last year.’
Uranium rose steadily from $10 to $70 over five years, then it doubled to $140 in late 2006, after which ‘capitulation’ and ‘despair’ set in and prices plummeted way below the $70 level.
And so to wheat which has been capped on five occasions in the past three weeks on breaching the maximum daily price increase allowed – despite this limit being doubled from 30 cents to 60 cents a day.
When the bubble bursts, financial forecasters anticipate prices returning to their former levels, at least in the short term. With 19 per cent higher plantings in the UK, livestock farmers need to hold their nerve and hope that milk and meat doesn’t follow the same path.
But what are the financiers recommending? Buy meat!
As cattle, and pigs in particular, are slaughtered-out in the face of uneconomic production, this creates a short term surplus which will be followed by a shortage.
©2008 The Alternative Semen Company LtdUpdated: 25/03/2008
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EFRA RECOMMENDS TARGETTING DISEASED BADGERS |
The House of Commons EFRA (Defra without the Department!)
Committee has recommended an all-out attack on bovine TB, including the targeting of diseased badgers.
But will Secretary Benn have the courage?
At the recent Defra seminars on the Cost Sharing and Responsibility consultations, bTB has been the centre of heated exchanges.
Time is at a premium, please write to MPs and the local press.
bTB is doubling every 4.5 years and government policy is described as ‘not working effectively’ by the Commons’ Committee.
©2008 The Alternative Semen Company LtdUpdated: 12/03/2008
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PROFIT BECKONS ABOVE COST RISES |
‘quite stunning.’
Old Mill Rural Services, accountants in the westcountry, recently reported data which they describe as ‘quite stunning.’
Old Mill compare the profitability of two herds of 160 cows, each selling 1.25m litres per year. The fortunes of a profitable example (making £35k before tax, drawings and re-investment in 2006) to a loss-making unit (loosing £16k on the same basis) both show big upturns for 2007.
Profitable businesses are forecast to increase their surplus to more than £100k in the year, while former loss-makers move to a positive +£32k.
Even if milk price slides a little and costs rise more than budgeted, the potential for strong dairy units to gear-up for the future is immense. Hence the reason for such high cow prices, and the level of investment being made in to facilities capable of meeting stringent pollution controls.
This is not being missed by beef and sheep farmers. A noticeable number are re-entering the dairy sector after 15 years or more.
Yet it all looks as if the exodus of milk producers will accelerate rather than stabilise. Age and succession are the two defining factors.
©2008 The Alternative Semen Company LtdUpdated: 03/03/2008
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Cost sharing and responsibility consultation |
PLEASE MAKE YOUR VIEWS KNOWN
BY 15 APRIL to
Mike Weavers, Defra RCS Programme, Area 310, 1a Page Street, London SW1P 4PQ
or rcsharing@defra.gsi.gov.uk
The Defra consultation is limited to England only with a possibility that English farmers could be involved in disease prevention decision-making and, also, contributing to the associated costs from as early as 2010.
The EU intends introducing legislation ‘to harmonise minimum standards across all member states from 2013.’ At such a time the remainder of the UK will have to introduce the policies as well.
Denmark, The Netherlands, Belgium, Germany, France and RoI all have schemes in place, although they vary in their scope and method of operation.
While the 57 page briefing document with its 42 questions is intimidating, there are a number of key principles where we all need to make our feelings known:-
At a recent Defra briefing day, it became clear that there is a wide range of opinion between various industry sectors.
Cattle farmers have an exceedingly low level of trust in Defra, demanding control of bovine TB before further changes to government policy.
Pig and poultry farmers wished to see a swift implementation of a new policy, claiming that cattle farmers will be better placed to wrest control of the TB issue from within an empowered industry-government body.
It was sobering to learn that 75 per cent of the EU Veterinary budget has been spent on the UK over the past ten years.
©2008 The Alternative Semen Company LtdUpdated: 25/02/2008
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The Alternative Semen Company Ltd
Lower Croan, Sladesbridge,
Wadebridge, Cornwall, PL27 6JH
Tel: 01242 808260
Email: info@alternative-semen.co.uk
Web: www.alternative-semen.co.uk
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