search.noResults

search.searching

dataCollection.invalidEmail
note.createNoteMessage

search.noResults

search.searching

orderForm.title

orderForm.productCode
orderForm.description
orderForm.quantity
orderForm.itemPrice
orderForm.price
orderForm.totalPrice
orderForm.deliveryDetails.billingAddress
orderForm.deliveryDetails.deliveryAddress
orderForm.noItems
will benefit EU/US Agro-food trade and, in particular, imports of US soy and other feed grains which had previously moved to a historic all-time low mainly due to the EU’s non-tariff barriers. “The European feed industry will continue to rely on imported


vegetable proteins for many years to support our competitive and sustainable livestock industry,” said FEFAC President, Nick Major, stressing that the persistent drought across many parts of Europe, meant it is possible that the EU will have to increase imports of soy and other feed grains during 2018/19 to maintain livestock population in the current marketing year. Another piece of classic timing maybe, although much more positive this time.


BIOJET FUELS AND ANIMAL FEED Looking a little further into the future of feeding farm livestock, and being extremely upbeat for a change, I recently spent an enjoyable hour talking to Canadian biojet fuel innovator Steven Fabijanski, discussing the potential of his company’s ambitions to plant 40 million acres worldwide with an oilseed/mustard-like crop called Carinata. As CEO of Quebec-based Agrisoma Biosciences, Mr Fabijanski


has spent the past five years developing Carinata as a new and sustainable source of aviation fuel, with the added attraction to farmers that the residue from the fuel oil crushing process can be fed to livestock. Progress to date is impressive. In January this year, for example,


Agrisoma partnered with Qantas to help fuel the airline’s first US-to- Australia flight to be propelled by a blend of traditional jet fuel and Carinata oil. Since then Qantas has been working with Agrisoma to develop a


farm-to-airplane value chain with the aim of producing 200 million litres of Oz-based biofuel a year, equivalent to around 50% of the airline’s annual jet fuel requirements. The crop is also now being grown in the US, Canada, South


America and has been the focus of a first oil crush demonstration project in Europe, all in preparation for production trials to begin next year in southern France, south-east Spain and possibly Italy. Total global plantings this year remain relatively modest at 100,000


acres, although that represents a doubling of acreage over 2017 levels, an annual multiplication process which Mr Fabijanski is confident of sustaining from now on. “Scaling up to 40m acres will obviously take time, maybe ten years,


but we’re confident that the growing base around the world is available and we’re starting to gather the necessary momentum to make this happen,” he said, pointing out that Agrisioma has already raised $12 million of venture capital funding to support the development, with more cash in the pipeline. “We also have longer term development hopes that parts of


China and Africa can be added, as our annual doubling of output gains further momentum. As a result, I think we’ll see some very interesting Carinata-based biofuel and animal feed numbers being achieved over the next few years.”


PAGE 14 SEPTEMBER/OCTOBER 2018 FEED COMPOUNDER


Milk Matters By Christine Pedersen


Senior Dairy Business Consultant The Dairy Group


www.thedairygroup.co.uk


EXCEPTIONAL WEATHER … We have come to expect ‘exceptional weather’ in UK to mean exceptionally wet weather; the last time exceptional weather impacted on UK milk production was in 2012 when a very wet summer resulted in reduced milk yields, reduced forage quality and maize yields up to 50% lower than normal. At the time we knew that dairy costs would increase, but it was not


until September 2013 (when sufficient accounts data could be analysed) that the true impact could be established. Our analysis indicated that in 2012/13 the total cost of production increased by 3.3ppl (10%) to 35.2ppl, with a knock-on effect to the following year (due to reduced milk yield & reduced forage stocks) with an average cost of 34.1ppl. Although 2018 is completely different to 2012, the very wet spring,


followed by a hot dry summer is expected to have a significant impact on the cost of milk production due to the lack of grazed grass and reduced forage yields, the need to make or buy additional forage, the increased use and price of purchased feed and the high cost of straw. The impact of the dry weather on maize crops has yet to be quantified, but looking at crop variability across regions, we expect yields to be compromised. Based on what happened in the previous exceptional weather event of 2012 we might anticipate the cost of production increasing by 3.1ppl (10%) to 34.5ppl in 2018/19 with a knock-on effect to the following year of 33.9ppl in 2019/20.


A quick glance at the graph above will leave the reader wondering


how UK dairy producers stay in business when the average cost of production has outstripped the average milk price every year for the last decade. There are several points to consider. The first is that stock sales and other outputs add approximately 3.0 ppl to the milk price, leaving the average producer at break-even point or retaining a modest profit in some years. The second is that both milk price and cost of production are average figures – there is a significant range in both so a low-cost producer could have a higher than average milk price and vice-versa. The third and final point is that the average cost of production includes an imputed cost for unpaid family labour of approximately 3 ppl.


Comment section is sponsored by Compound Feed Engineering Ltd www.cfegroup.com


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76