Dairy Markets

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Del curso dictado por The Pennsylvania State University

Dairy Production and Management

278 calificaciones

The Pennsylvania State University

Dairy Production and Management

278 calificaciones

With the world's first MOOOOO-C, you will gain a broad and comprehensive understanding of all aspects of dairy management such as genetics, nutrition, reproduction, animal health, farm economics, and sustainability of dairy production systems. There's something here for everyone whether you are just looking for the basics or have years of experience in the dairy industry. This is an eight-week course. Each week consists of four to nine video lectures, additional reading materials, and a multiple-choice questions quiz. Estimated study time is between three and five hours per week. Learners have the option to purchase a Course Certificate for 49.00 USD. The certificate can be purchased at any time, but you must verify your identify before taking the course quizzes in order to be eligible. For those who cannot afford the certificate fee, financial aid is available through Coursera. Why is producing milk efficiently and sustainably so important? Milk provides humans with over 16 essential nutrients, such as: Energy, Protein and Essential Amino acids, Vitamin A, Vitamin D, several B vitamins, including B12, Pantothenic and Folic acids, and essential minerals such as Calcium, Magnesium, Phosphorus, Potassium, Zinc, as well as other minerals. Did you know that one glass of milk provides a 5-year old child with 21% of his/her daily protein requirements and 8% of their energy needs? Most milk in the world, about 85%, is produced from cattle. However, water buffaloes, goats, sheep, and camel are also dairy animals. The United States, India, the European Union, Brazil, and New Zealand are among the largest dairy producers in the world. Yet among these dairy-producing countries there are varied methods to generate milk with highly variable productivity and efficiency. Dairy production is vital for the survival of billions of people. Globally, around 150 million small-scale dairy households, equivalent to 750 million people, are engaged in milk production. The number and size of dairy farms varies among countries, but in India alone, there are estimated 78 million dairy farms! In the United States, one of the leading milk-producing countries in the world, total milk production has been steadily increasing in the last decades, reaching over 205 billion pounds (93 billion kilograms) in 2014. This was accompanied by a steady increase in average milk yield per cow, reaching 22,260 lb (over 10,100 kg) per lactation in 2014. How has this efficiency been achieved? What methods are necessary to ensure production of high quality milk? How do we balance milk production efficiency with animal health and environmental protection? This course will provide the student with information to better understand dairy production systems and their role in feeding the world population. In this MOOOOO-C, you will learn about the dairy enterprise from internationally recognized dairy science professors who have delivered highly regarded dairy education programs within the United States and internationally. Course lectures are translated into Portuguese and Chinese; PDF files of these translations can be found under each course week. The Dairy MOOC team thanks Dr. Antonio Branco (Universidade Estadual de Maringá, Brazil) and Ms. Yuanyuan Zhang (Pennsylvania State University) for translating the lecture materials. Course Sponsors This course was supported by the generous contributions of Innovation Center for US Dairy at Silver Level and Pancosma North America, RP Nutrients, Inc. and Arm and Hammer, which provided funding support at a Bronze Level. The Pennsylvania State University has final responsibility for the academic content of this course.

De la lección

Farm Economics and Environment

In Week 8 of the course, you will learn about the basics of dairy farm management and identify some key aspects of farm level economics that impact farm productivity and profitability. From crops to cows to cash, the dairy farm is an economic engine that has positive impacts on local communities. The second part of this series expands on dairy’s local impact to provide a global view of dairy markets around the world. From price volatility to seasonal milk supplies, the world marketplace for dairy products is complex. In the last lectures of this course we will discuss the environmental implications of dairy production and strategies for decreasing nitrogen, phosphorus, and greenhouse gas emissions from dairy operations. Those of you, who would like to get more engaged in discussions and are interested in completing the Course Certificate requirements, can participate in discussion forums and take the weekly quiz. Enjoy this week's material and the entire course!

Dairy Farm Management7:01

Dairy Farm Economics6:12

Dairy Markets8:11

Milk Marketing7:20

Conoce a los instructores

Alexander N. Hristov
Professor of Dairy Nutrition
Animal Science
Troy L. Ott
Professor of Reproductive Biology and Associate Director
Huck Institutes of the Life Sciences
Bhushan Jayarao
Resident Director
Penn State Animal Diagnostic Laboratory (ADL)
Greg Roth
Professor of Agronomy
Plant Science
Gabriella A. Varga
Distinguished Professor of Animal Science
Dairy and Animal Science
Chad Dechow
Associate Professor of Dairy Cattle Genetics
College of Agricultural Sciences
Robert Van Saun
Professor of Veterinary Science and Extension Veterinarian
Department of Veterinary and Biomedical Sciences
Kathy Soder
Research Animal Scientist
USDA-Agricultural Research Service, Pasture Systems and Watershed Management
James Dunn
Professor of Agricultural Economics
Agriicultural Economics, Sociology and Education
Lisa A. Holden
Associate Professor of Dairy Science
Animal Science

[MUSIC]

My name is Jim Dunn, I'm a Professor of Agricultural Economics at

Penn State University and my specialization is Dairy Economics.

Dairy markets are marked by time legs and perishability issues.

For drinking milk in particular, and all dairy products to a lesser extent,

people are not induced to buy more if the price is less.

If drinking milk is on sale, the consumers are unlikely do buy twice as much

since milk is not very storable as it must be refrigerated and takes up a lot of

space in the refrigerator even refrigerated milk can spoil.

Most dairy products are considered necessities,

this is especially true of drinking milk, many parents will buy the milk for

their children regardless of cost.

This lack of price sensitivity is called inelastic demand.

On the farm, milk has an inelastic supply, that is,

the farmer cannot adjust milk production quickly if the milk price changes.

Dairy cows stay in production for many years, in addition,

it takes a long time for a cow to start producing milk.

A calf is bred, once she's one year old and has her first calf a year later.

So, you get no milk until the animal is two years old when her first calf is born.

This lack of adjustment by both consumers and producers creates a lot of price

volatility, we see in this slide the enormous amount of price volatility

for the class three or the price of milk to make cheese, until 1985

we had a stabilization program where the government bought up all the surpluses,

but the price was too high and we were buying up 15% of milk production and

in the process of lowering the support price to a level where it no

longer provides support, we have now very great price volatility for milk.

The shelf life of milk depends on farm refrigeration.

Generally, very small farms with one or

two cows do not have a refrigerated milk tank,

while some of the biggest farms quick chill the milk to just above freezing.

Immediately, after it comes from the cow and pump it straight into the milk truck,

that carries it to the factory that processes it.

This reduction of temperature, reduces bacterial growth and spoilage.

Other dairy products such as cheese, butter and powdered milk are much more

storable and can last for several months or even years before it being consumed.

Farm milk used to produce these products often receives a lower price.

Since, there's no urgency for finding a customer for the product.

The productivity in an average dairy cow grows by about 1 percent a year

in the United States and other modern dairy countries,

while in developed countries the population usually grows more slowly.

This means the dairy industry depends, that if the dairy industry depends only on

the domestic market, it will need fewer cows every year.

Since, the number of cows per farm also grows,

this means the number of dairy farms falls over time.

Between 1990 and 2010,

the number of dairy farms in the United States has dropped by 70%.

The ability to export dairy products can partially offset this natural shrinkage,

if the industry can effectively compete in world markets.

To export dairy products, the nation must have prices and

production costs below the world average and

be able to produce products the rest of the world wants to buy.

In the past decade, the United States exported much more dairy products,

which has allowed the industry to grow and to benefit from increase in prosperity and

other parts of the world.

Especially, China and Latin America.

The North American Free Trade Agreement provided market access to Mexico and

Canada, that was not their previously and

now Mexico is the biggest US dairy customer.

What do different dairy customers want?

For each customer the answer will vary.

For example, Mexico imports American cheese for Resorts and

exports Mexican cheese to South Mexican immigrants living in the United States.

One challenge in an international trade is the issue of the regional appellations.

Europe in particular has many limits on standards of identity according to origin.

For example parmesan cheese must come from parma, in Italy.

This is a continuing stumbling block in European Union, US trade talks

since American Parmesan cheese is used to make pizza in the United States.

American processors have developed this market over the years

would not want to sacrifice it to Italian processors at this point.

Historically, before trade in dairy products was widespread,

many governments instituted polices to stabilize milk prices.

Generally, these policies involved a system of production quotas and

support prices, where the government would buy excess production and

pre-established prices, and then dispose of these government

inventories in various ways including selling them at a loss overseas or

providing famine relief for distressed countries.

Invariably, the political pressure led to raising government support prices

faster than production cost grew and very large government stockpiles accumulated.

The farmers didn't want the stocks distributed in their home country,

and farmers in the receiving country didn't like having to compete with

subsidized imports.

These policies are now ending with New Zealand leading the way in the 1990s, now,

the U.S. government has offered subsidized margin insurance to help farmers in a year

of low prices, but is largely out of the commodity storage business.

In April 2015, the European Union ended its dairy production quotas and

farmers can expand or relocate as they see fit.

And general,

artificially high farm prices are not sustainable in the world of free trade.

With the last 20 years,we've seen the growth of

dairy exports in the United States

grow from about 5% of milk production to up to 17% of milk production.

As we've gotten rid of our dairy price supports and

brought our prices in line with world markets, and now we are the third largest

dairy exporter in the world after New Zealand and the European Union.

A further complication in dairy markets is seasonal demand,

when the students return to school in the autumn, milk consumption rises.

During the winter holidays in Europe and America, more baking and

entertaining increases butter consumption.

These cycles do not coincide with the production cycles of the cows so

storage is required to equalize seasonal supply and demand.

Milk production is uneven throughout the year.

Production depends on weather, quality feed,

when the cow has a calf, and other factors.

So, what we see in this slide is that milk production is most in May.

In the spring, when you have good, new grass and it falls as the year goes on and

is generally at it's lowest, just before Christmas.

And at that point the cows are consuming stored feed and

that feed isn't necessarily as good as the fresh stuff coming out of the field.

The seasonality in the United States is much decreased because most

of our cows are in confinement, but in some countries, like New Zealand,

the seasonal high is 20 times the seasonal low,

and so for example, in the middle of their winter they're basically producing

just enough milk for the domestic milk drinking population.

Historically, in temperate climates, the highest milk production is in the spring.

As the temperatures rise,the quality of the grass decreases and

milk production falls.

In extremely hot climates such as south Australia.

Dairy farmers often dry off their herd and take a break in the summer.

In winter, places where there are mostly grass fed dairy herd

suspend production and wait for spring.

The examples are Ireland and New Zealand.

These extreme fluctuations in milk production did not match well with

the fluctuations in milk consumption.

And create a lot of seasonal variation in prices and income.

Farmers must plan ahead for the lean months,

and consumers may find prices vary considerably throughout the year.

All of this makes planning a challenge.

It also means farmers must plan for periods of poor profitability.

It occur but periodically.

[MUSIC]

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