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August 13, 2024
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Global - Milk supplies forecast: stability expected for the remainder of 2024
According to latest estimates, global milk production across the key producing regions is expected to remain stable with a small decline of 0.1% year-on-year. This is slightly lower than the 0.1% increase recorded in 2023 and a downgrade from the 0.25% growth predicted earlier this year. There is expected to be some variability across key regions.
Overall, dairy markets so far in 2024 have been tending towards slight undersupply due to weaker underlying market fundamentals. Disappointing Chinese import demand contributed to overall lack of movement on the demand side and lower prices than the previous year. Although prices have been rising again, producing some margin improvements, input costs remain at much higher levels than previously.
In the first half of 2024 (to June 2024) every region except for Australia and the EU have seen decline. Even the EU only grew by a modest 0.6%, whilst Australian milk supplies grew by 3.8%, annualising against a weaker 2023. However, total production for the year ahead is expecting to be overall more stable in the key exporting regions.
Australia (2.0%), US (0.2%) and EU (0.4%) are expecting to end the year with slight growth with the UK (-0.7%) and New Zealand (-0.7%) expecting to be in moderate decline. Argentina continues to expect more severe declines (-7.4%) in response to the challenging economic conditions seen in the country, although less severe than the declines we have been seeing.
The decline in herd size in the US is slowing down and cow numbers are expected to further stabilise in 2024. Despite the continuously decreasing dairy cow herd in Europe (-0.5%), EU milk supply is forecast to remain relatively stable also in 2024 (+0.4%). Stabilising input and output prices could improve margins for dairy farmers in 2024, while EU dairy consumption could benefit from somewhat easing food inflation and remain stable overall.
Read more about the global milk production forecast on the AHDB website.
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UK - Catch crops offer rescue plan for part-filled clamps
With the summer's inconsistent conditions adding to last winter's wet weather woes, livestock farmers could be facing the prospect of not having enough home-grown forage available this winter. Simon Montgomery of ProCam explains how an autumn sown catch crop could mitigate the shortfall and unlock additional revenue from the SFI scheme. "After one of the wettest years in recent history, the summer hasn't given growers any respite, with unrelenting rain showers and below average sunshine preventing forage crops from growing as hoped," Simon explains.
Lower than usual hours of sunshine and a corresponding lack of heat units has slowed grass growth, with a large proportion of dairy and beef producers expressing concern that second and subsequent cuts of silage grass simply haven't produced the biomass required to fill clamps. The sub-optimal weather has also impacted maize growth so far this year, with concern building that unless conditions improve and remain improved for the remainder of the growing season, the forage stock challenge could be compounded by low maize yields.
For producers with serious concerns about winter forage stocks, now is the time to start formulating a contingency plan Mr Montgomery advises. "One way of plugging the gap is to plant a catch crop as soon as the autumn's cereal and/or maize harvests have concluded," he explains. Growers have three main options: "They can either opt to drill a fast-growing single species ryegrass ley, choose a triticale based multi-species mixture which will have the added advantage of qualifying for an SFI (Sustainable Farming Incentive) payment under the scheme's SAM2 classification, or look at a forage and rye type mixture."
For the former, he recommends ProCam's 'Hurricane III' mixture from the company's Field Options range of forage seeds. "Based on a new, high performance and exceptionally hardy diploid Westerwold ryegrass, Hurricane III is ideal in scenarios where grass is required in a hurry," Simon explains. "Sown after maize, its combination of complementary varieties produces big cuts of silage early in the spring, with UK trials showing it can deliver as much as 8.1-9.1 tonnes of dry matter per hectare. It is also suitable for spring and autumn grazing when managed correctly and will easily persist for at least 12 months."
For producers more interested in growing a multi-species catch crop - to produce biomass and to secure an SFI payment - ProCam's 'T101 N-Max' seed mixture is more appropriate. "N-Max is based on an 80:20 mixture of forage triticale and hairy winter vetch," Simon continues. "The triticale element is more robust and faster establishing than forage rye which makes it ideal for the production of spring forage for early stock turnout and to reduce the reliance on bought-in feed when silage clamps run empty.
"N-Max also meets the SAM2 specification by providing over-winter ground cover which scavenges existing nutrients and prevents leaching losses and reduces soil erosion. It also excels at suppressing autumn weeds, and, thanks to its ability to withstand even the harshest of winters which enables it to keep growing through the winter, it has the best potential for producing spring biomass with a similar feed value to forage rye."
As a third option, N-Rich - which comprises an 80:20 split of forage rye and hairy winter vetch varieties - is also suitable for drilling after maize. "N-Rich occupies the middle ground for those who might not have the confidence to grow a triticale-based ley," Simon explains. "It too continues to grow even in very hard winters and produces a good biomass for spring cutting or can be grazed from January onwards. And it is also SAM2 compliant which means producers electing for this option can also benefit from an SFI payment." www.field-options.co.uk; info@field-options.co.uk
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UK - Confident Strides: Taking steps to enhance cow mobility
AHDB Dairy's 'Confident Strides' campaign kicks off this week at Keele Dairies Ltd, Newcastle, Staffordshire ST5 5BD, on Wednesday, 14 August 2024. Time is 10:45am - 2:30pm.
Book your place for this on-farm meeting, designed to help you take steps to enhance your herd's mobility while grazing and simultaneously boost profits and public perception.
Lameness can be costly, increasing staff time and treatment expenses, while also reducing milk yields and shortening your cows' productive lives
This event offers practical, actionable advice you can implement on your farm to improve cow welfare, even with limited time and resources
You'll hear from mobility mentor Will Gratwick, who will share best practices for identifying and applying the right solutions for your cows. Following this, Sam and Tom Summerfield will discuss how they collaborated to reduce lameness rates at Paddocks Farm.
This event will cover: The key factors that affect mobility while grazing; Practical ideas for addressing lameness; The benefits of our Healthy Feet programme; The steps Paddocks Farm took to improve mobility.
If you want to create a future where your cows move with confidence and ease, leading to happier and healthier lives, then this meeting is for you.
Book you place today!
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UK - Don't forget to check operator licences when running farm machinery
With farms across the country at full stretch, with harvesting providing better than expected yields for some, given the incredibly challenging weather conditions, farmers are being warned to minimise risks at a period when there is greater vehicle and machinery movement on site and on roads.
"While not restricted to the busy harvest period, this is the point where we see more bodies on farm, and indeed more machinery and farm vehicles in operation," says Acres Insurance Brokers director Georgie Spencer.
"One area that is often overlooked is ensuring staff operating machinery and agricultural vehicles hold the correct licences and qualifications," she continues.
She explains that a clear example is the fact that not all driving qualifications are equal. In the UK, when you pass your car driving test and acquire a category B licence, you are automatically entitled to a category F licence to drive a tractor.
"This is not always the case throughout Europe, so if employing seasonal staff from European countries, it is important not to assume anything. Check driving licences, as well of course as the right to work in the UK. Failure to do so could mean any insurance cover would be void," she adds.
There are also different weight and speed restrictions on some agricultural machines, depending on factors such as type of vehicle, and age of operator, that should also be considered. Tracked vehicles also require a separate category H licence, and this requirement can be missed.
"Many farm businesses recruit seasonal workers who are under the age of 25. When recruiting young workers who will be responsible for driving tractors and other farm vehicles, it is important to be aware of age restrictions and any limitations on your insurance."
Policy holders need to inform insurers or brokers of any young drivers under the age of 25, so there is a note added on the policy.
"While 'Any Authorised Licensed Driver' is covered under the Agricultural Vehicle section of your policy, meaning drivers over the age of 17 with the correct licenses are covered when driving tractors, not all policies cover young drivers when driving commercial vehicles, and certain large pieces of machinery, such as combines, also have restrictions," she explains.
Tracked vehicles will also need adding to the license.
"A key priority should also be to make sure any existing motoring convictions by any employees operating agricultural vehicles or machinery are listed on insurance policies."
The broker will require a copy of the licence of any driver from outside of the UK, of any age, to ensure insurers are happy with them driving the vehicles on the policy.
"Regardless of age, we recommend that you conduct a simple driver competency assessment on all seasonal staff. Make sure this is recorded and signed by the employee," she continues.
"This demonstrates to HSE that you have taken reasonable precautions, and will hopefully flag up any potential training gaps or areas that need to be addressed. We would advise policy holders to have a fully logged training record for all staff, especially temporary harvest workers."
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UK - TIAH Launches "Essential Skills: Inclusion Matters" online learning
The Institute for Agriculture and Horticulture (TIAH) is proud to announce the launch of its new e-learning path, Essential Skills: Why inclusion matters. These innovative learning pathways are designed to support farmers and growers in understanding the importance of diversity and inclusion, recognising unconscious biases and implementing practical steps to create a welcoming workplace for everyone.
At TIAH, we believe that by creating an inclusive workplace, farmers and growers can see many practical benefits including: Better staff retention: Inclusive workplaces are more likely to retain employees, reducing the costs and disruptions associated with high staff turnover. Attracting talent: By implementing inclusive hiring practices, we can attract talent from a wider pool, helping alleviate labour shortages. Improved innovation: Diverse teams bring different perspectives, which can lead to more innovative solutions to farming challenges
We understand that implementing new practices takes time and effort. That's why our e-learning path is designed to be: Practical and tailored to agricultural and horticultural contexts; Concise and impactful, taking around 40 minutes to complete each module; Supported by additional resources and guidance from TIAH. By becoming a TIAH Member, your progress is automatically saved, allowing you to fit this flexible learning around your own busy schedule.
This isn't about drastic changes overnight. It's about taking gradual, positive steps towards a more inclusive and sustainable industry. TIAH understands many farmers and growers want to be more inclusive but are not sure where to start, that's why we are offering this important training free of charge. By completing this training, you're not just ticking a box - you're investing in the future of your farm and our industry.
Start your learning now by visiting the TIAH website to take the FREE Essential skills: Why inclusion matters - www.tiah.org/why-inclusion-matters
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UK - Possible Inheritance Tax changes under Labour government prompts business rethink
The possible abolition of Agricultural Property Relief (APR) in the next government budget could have significant financial implications for landowners, particularly landlords, according to leading property consultancy Berrys.
If APR is abolished, inheritance tax liabilities could increase substantially, with a farm valued at £2 million facing an estimated tax bill of £600,000. This change would predominantly impact landowners not actively trading and would affect landlords of Farm Business Tenancies (FBT'S) and Agricultural Holding Act (AHA) Tenancies.
Although Chancellor Rachel Reeves hasn't specified any changes to APR, in Labour's first budget, which is scheduled for 30 October, she has indicated that taxes are likely to rise but that national insurance, VAT or income tax will remain untouched. That leaves inheritance tax, capital gains tax and pensions up for grabs.
Pre-election, the then Defra Secretary Steve Barclay warned that Labour were 'secretly planning to scrap inheritance tax relief for farmland'. APR currently offers significant inheritance tax relief for family farms. However, the new government's stance on APR is still unclear, making the future of this relief is uncertain.
Charlotte Shepherd, Partner at Berrys, highlights the growing likelihood of a change to APR. "APR has been part of the discussion for a long time now, and with a new government in place, there is an even stronger chance changes to APR will come," she says.
Mrs Shepherd advises landowners to carefully consider alternative options to their land management strategies, perhaps moving from FBT agreements to share or contract farming agreements. This shift can help reclassify the farm as a trading entity, making it eligible for the other important relief - Business Property Relief (BPR), upon death. The landowner would need to have been actively trading in business for two years to claim this relief on business assets.
Although moving away from an FBT to a share or contract farming agreement will mean changes for both the landowner and tenant, there are a number of impacts that both parties should consider.
Please contact Charlotte Shepherd in the first instance on 01743 290642 email charlotte.shepherd@berrys.uk.com.
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UK - GB milk production: July production closer to year ago levels as weather stabilised
AHDB estimates GB milk deliveries totalled 1,024 million litres in July, only a minor decline of 0.3% compared with the same month of last year. Daily deliveries averaged 33.03 million litres per day. So far, production for this year's milk season (April-July) totals 4,270 million litres, down 0.9% on the same period in 2023.
After a slow start to the year, we have seen milk production move much closer to year ago levels over the last couple of months. There are a couple of potential drivers for this. Firstly, more favourable weather has boosted grass growth and quality appears good, although there is some regional variation. AHDB's Forage for Knowledge reports that most farms contributing data are achieving the correct average farm cover. Met office data shows that July rainfall sat in line with the UK long-term average for the month. The overall mean temperature was 14.8°C, with a cooler wetter start to the month evened out by higher temperatures in the last week.
Secondly, we continue to see milk prices strengthening, which may be incentivising producers to push production. In recent months, we have seen uplifts in prices for almost all contracts on the AHDB league table. UK wholesale markets have also witnessed good support, with prices for butter, bulk cream and mild cheddar.
Looking ahead, milk prices could continue to be supported later in the year if dairy product demand returns after the summer holiday season. The weather will continue to dictate some on farm decisions, as many farmers will be looking to take quality forage and plan for good grass cover in the autumn while keeping an eye on harvest progress and what that might mean for feed prices and availability come winter.
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UK - Don't overlook weed control when reseeding
Utilising quality grazed grass to full effect is one of the best ways of keeping costs down in any livestock system. Re-seeds can play an important role in grassland productive. However, when cultivating the ground during this process, the seed bank is disturbed, allowing dormant seeds to germinate, explains David Gurney, Corteva's Field Technical Manager for grassland crop protection.
He says: "Newly established grass leys are particularly vulnerable to weed invasion because the sown grass species are not yet fully established and can be easily outcompeted by more aggressive weeds. If left unchecked, weeds can dominate the pasture, leading to undesirable species which livestock may not find either palatable or nutritious." High prices for fuel, labour, seed and fertiliser make re-seeding a big investment so it is important weed control strategies are in place to gain optimum long-term productivity from newly sown leys.
"Annual weeds such as chickweed, redshank and fat hen are particularly problematic while seeding perennial weeds such as docks and thistles can also cause real difficulties to the establishing ley. It is vital to control them as they can quickly dominate a new grass ley, reducing its ability to establish successfully and become productive. In new grass leys which include clover, weed control is more challenging. Using Forefront T after the last grazing or cut in the preceding crop can significantly remove the threat from docks or thistles which might subsequently re-emerge from root fragments.
"Weed seedlings are more susceptible to herbicides than mature plants so hitting them at the right time is paramount. It is cheaper to control weeds at this young stage than when they are established. Early productivity from the establishing ley will also be better if the weeds are removed early."
Select the best solution for the weed challenge you face, advises Mr Gurney.
He says: "Use 'Envy' where the main focus is seedling docks establishing from root fragments, chickweed and buttercup. Where docks are likely to be a major issue in the new ley, it is a good idea to use an effective dock spray or glyphosate in the previous crop to reduce the burden of docks growing from root fragments in the new ley. Envy can be applied up to the end of November. Use 'Leystar' to tackle a wider spectrum of weeds including seedling thistle. Target sprays around six to eight weeks after reseeding. It is important the grasses present are beyond the three-leaf stage before products are applied. Leystar can be applied until late August."
For more information visit corteva.co.uk/crops/grassland
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UK - The future looks bright at this year's Dairy Show
The next generation will be at the heart of this year's Dairy Show with a full schedule of competitions and seminars focused on building a bright future for dairy. Returning to the Bath & West Showground on 2 October, the show will host some of the UK's finest dairy livestock, welcoming past, present and future generations of talent and class. Exhibitors will travel from all over the country to compete in a variety of breed classes before respective champions go head-to-head for the sought after Supreme Champion title. But before the title is bestowed, the ring will host the next generation of handlers in the Showmanship classes, including age groups 7-12, 13-17 and 18-26. This, followed by the calf classes, will be a chance to spot a few new showing stars.
The Dairy Show will also once again be the venue of choice for the UK Jersey Cattle Society's and the English Guernsey Cattle Society's National Shows. To that end, competition entries will open in early August to all classes. Demonstrating the sector's breadth of knowledge and innovation, a showcase of the latest technologies, services and advice will also be on offer - enabling discussions and collaboration which capitalise on opportunity, build resilience, and help prepare for the future. With the future in mind, the Dairy Show is proud to announce its 'Careers' theme for this year's seminars - aiming to take a holistic approach to the industry's growing need for new minds, perspectives and appetites. "The dairy sector - and the industry as a whole - has a wealth of career prospects," says Head of Shows, Jess Chiplen.
"But despite there being an extraordinary breadth of careers, young people and those looking for new career opportunities have often expressed that they are at a loss of where to go for advice, how to get their foot in the door - or even afford a career change. With so many businesses and key stakeholders present at the show, it felt like a prime opportunity for us to tackle the careers topic and work towards dismantling barriers."
Furthering its reach to young people who reside outside the farm gate, the show will launch its Dairy Discovery Day - linking farming with STEM (science, technology, engineering and mathematics), with its pilot interactive careers tour taking place at the show. "As we continue to broaden our education horizon, we are excited to be launching a new initiative to the Dairy Show, specifically aimed at key stage two students who are beginning to explore possible career paths, "says shows and education co-ordinator, Lilanie Self. "The career choices are limitless, and we are passionate about providing a platform to raise awareness of the breadth of opportunity within agriculture."
Find out more and book tickets at www.bathandwestdairyshow.seetickets.com/event/the-dairy-show/bath-west-showground/3079678
Enter competitions at www.bathandwest.com/the-dairy-show/competitive-entries
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