Livestock snippets

    Livestock snippets

    Milk looks positive whilst beef supply falls in the USA

    Milk looking positive

    As we have observed in the past, a rise in the global price for dairy products is perhaps the most important driver of UK milk price.  

    The bottom end of the milk price is determined by the demand from the milk processors which is in turn determined by the ability to compete with imports. 

    Unfortunately, and for whatever reason, the UK dairy supply chain remains uncompetitive leaving the UK as importers in dairy products.

    Following the extreme USA drought last year and the extraordinary wet weather here, New Zealand is now suffering one of the worst droughts for at least 30 years.  While an ill wind for New Zealand, their dominance of dairy exports has meant that the Fonterra auction price, one of the measures most closely representing world price, reached a new peak.  View the graph. Note also the reduction in the volume offered.

    Beef supply also falling in the USA

    It is not just the poor countries that suffer in times of high prices. The high grain prices in the US have reduced the number of beef cows to the lowest level since 1962. View the graph.

    Even many cattle systems based on grazing feed more grain per kg of meat than poultry or even pigs but US feedlots have an even more unfavourable relationship. 

    Globally, meat consumption is moving away from beef.

     
     

    Key contacts

    Ashley Lilley

    Ashley Lilley

    Director
    Food & Farming

    Savills Cheltenham

    +44 (0) 1242 548 012

    +44 (0) 1242 548 012