ADM Deforestation-free PKE
27/09/2023
ADM Newsletter - August 2023
General Manager NZ's comment:
Welcome to the ADM Newsletter, our objective is to provide you with some useful info that may assist you in decision making around imported concentrate feed usage on you farm(s).
With increasing cost pressures and declining returns getting an economic return on your feed inputs is more important than ever. In this newsletter Natalie Chrystal provides a perspective on the importance of feeding especially during mating.
We hope you find the info below of value and would welcome your feedback .
Regards
Peter Mourits
A fair bit has changed since we sent our last newsletter. The purpose of this email is to provide you with monthly market knowledge to help with your feed decisions and also a topical technical article.
What’s been happening at ADM NZ? A fair bit actually. We are sad to have said goodbye to Brenda our Territory manager down in Southland as she has moved on. We are replacing this role and will introduce that person in due course.
We have been wrapping trucks. Keep an eye out for these units moving around the country below.
We have a new website that will be updated regularly and provide you with product information, Feed declarations and our friendly reps. preprod.admnewzealand.co.nz
Global PKE markets.
Uncertainty would be the word to describe Global feed markets currently. The Ukraine war continues to drive a degree of uncertainty around supply with some key infrastructure damage impacting order flow, reducing shipments to some markets, and increasing flow into Europe.
We continue to see the global PKE market mature with the product being used more widely as an input into concentrate feeds ,when priced competitively. A record hot June in Europe drove their early summer PKE demand, this was followed by a record wet July reducing demand in this region. PKE usage in NZ has traditionally had a significant impact on global PKE pricing but as our usage has stayed stable or declined and other markets taken up the increased production NZ’s influence on PKE pricing has diminished. We now represent less than 30% of global PKE usage.
Over recent months we have seen PKE demand from China up significantly reducing pressure on crushers and supporting current firm prices. One would expect the weaker overall global economic outlook to put downward pressure on feed prices, but we have yet to see this materialise. Prices in NZ$ to you the farmer have also been impacted by our weakening economy. The depreciation of the NZ$ by more than 7% this calendar year has increase PKE NZ$ prices by more than $25per mt.
Body condition loss in early lactation affects mating success – Natalie Chrystal, Nutritionist, Complete Feed Solutions
he dramatic drop in Fonterra’s forecast playout for the 2023/2024 season will have many farmers, and their bank managers, questioning whether the use of supplementary feed will pay for itself this year, and there is no doubt there will be substantial adjustments to budgets over the next few weeks.
When making decisions about where to cut costs, it is important to consider not only the cost of any input or strategy but also the overall return which that might bring to the business. Where farmers have a good handle on pasture management and are feeding a well-balanced diet (with or without supplements), reducing feed inputs will typically result in less milk in the vat. Ultimately this means that fixed costs are spread over fewer milk solids, reducing profitability per kg of milk solids and in many cases overall farm profitability.
Another undesirable consequence of reducing feed inputs, particularly in early lactation, is a likely reduction in in calf rates. Although this may not affect milk production in the current season, the consequences will be felt in subsequent years.
Irish researchers (Buckley, 2003 adapted from Regan, 2021)[1] assessed the effect of cow body condition at calving and weight loss between calving and first service in spring calved cows fed predominantly pasture based diets (Figure 1). These authors reported a decrease in 6-week in calf rates with increasing body weight loss between calving and first service. They also showed that cows with lower body condition at calving are less likely to get in back in calf.
Once mating has started cows should be either maintaining or gaining bodyweight to support the establishment of a healthy embryo, and it is important to maintain a stable or improving supply of nutrients, particularly energy, to the cow through the mating period.
Macro (such as calcium, phosphorus, magnesium and sodium) and trace minerals (such as zinc, copper, selenium, cobalt and iodine) play an important role in many physiological processes including reproduction. Including these in a compound feed or blend is an easy and cost-effective way to ensure that cows get all the essential nutrients they need for milk production, health, and immunity.
Adjusting your feed budget in the face of a low pay out is always a challenge. However, while supplementary feed is costly, used wisely it can help improve the overall profitability of your business.
[1] References available on request.
Buckley, F., O’Sullivan, K., Mee, J. F., Evans, R. D. and Dillon, P., 2003. Relationship among milk yield, body condition, cow weight, and reproduction in spring-calved Holstein-Friesians. J Dairy Sci., 86 (7), pp. 2308 – 2319.
Regan, M., 2021. Pre-breeding management of the dairy cow. Veterinary Ireland Journal, 11 (5), pp. 298 – 301.
