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New Zealand dairy producers might be penalized for feed additives

New Zealand dairy operators might be penalized by their milk processors soon for using too much PKE, or palm kernel expeller, as a feed additive.  Highground Dairy analysts say Fonterra is talking now with producers to finalize penalties for overuse of PKE to bring up the level of milk components during a year where the weather has not brought them high-quality grazing ground.

New Zealand dairy operators are usually required to have a pasture-based feed for dairy cows.  Fonterra put in place a voluntary 3-kilogram PKE limit per cow two years ago.  Highground Dairy says New Zealand has already imported more PKE this year than all of last year.  The wet weather has also prompted New Zealand to increase imports of U.S. dried distiller grains because of a poor wheat crop.

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