Farm News
May 2014 Milk Suppliers’ Edition
Castlefarm Expansion
The IFA’s National Dairy Committee visited the Castlefarm site to view the investment recently undertaken there and plans for further development.
Pictured (l to r) are James Lynch, Vice Chairman, Catherine Lascurettes, Secretary, IFA National Dairy Committee, Jim Woulfe, Chief Executive,
Martin Gilvarry Vice Chairman, IFA National Dairy Committee and Bertie O’Leary, Chairman.
Castlefarm Expansion
During the last week in April our new expanded Castlefarm
facility processed its first milk following a very intensive
fifteen month construction and commissioning programme.
The `33 million investment increases the facility’s
processing capacity by an additional 5.2 million litres per
week. The investment involved the installation of new milk
intake, new dairy plant, new evaporator, new dryer and new
automated multi bag-off facilities.
The investment represents Phase One of Dairygold’s post
quota expansion plan. The Castlefarm investment will allow
Dairygold to cater for its suppliers’ forecasted milk volume
expansion. Dairygold milk flow is currently showing a 17%
increase over April 2013.
Investment from Enterprise Ireland also facilitated the
improvement in the energy and environmental performance
of the site which boasts one of the country’s largest and
most modern Anaerobic Digester effluent plants,
commissioned in 2012. This waste-to-energy system uses
effluent from the site to generate gas to contribute to the
site’s energy requirements.
In April the Castlefarm site was chosen as the location for
the Irish Dairy Board’s new national Kerrygold butter
manufacturing facility. This facility will see the Kerrygold Foil
Wrapped and Tub butter manufacturing centralised at
Castlefarm with associated R&D activities.
Phase Two of Dairygold’s post quota expansion plan will
see work begin in the coming months at our existing dairy
site in Mallow to establish a new state-of-the-art milk
processing facility with ancillary infrastructure to produce
the full range of milk powders up to and including Infant Milk
Formula.
AGM & SGM
Over 350 Members turned out to the Society’s AGM &
SGM in the Silver Springs Hotel in Cork on 7th May. The
meeting was very positive and constructive where Members
heard reports of the strong 2013 performance.
An SGM was convened after AGM at which Members
overwhelmingly approved a number of amendments to the
Society’s rulebook. The rule changes will ensure the
on-going development and good governance of the Society
in the post quota era.
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AGM & SGM
Pictured (l to r) at the recent AGM of Dairygold Co-Operative Society Ltd. At the Silver Springs Hotel in Cork were
Michael Harte, Chief Financial Officer; Eamonn Looney, Secretary; Bertie O’Leary, Chairman; Jim Woulfe, Chief Executive
and James Lynch, Vice Chairman.
Milk Supply
Dairygold milk supply for April 2014
was 17% up on the supply for April
2013.
The Department of Agriculture, Food
and the Marine has announced that
the national milk quota position up to
31st March 2014 is estimated to be
0.94% over quota when account is
taken of the butterfat content.
Dairygold made a provisional
allocation of internal flexi milk with the
March milk accounts. The finalisation
of the 2013/2014 quota position
cannot take place until the allocation
of national flexi milk has been
received from the Department of
Agriculture.
This may not take place until August /
September 2014.
Temporary Leasing Scheme
Details of phase one of this year’s
temporary leasing scheme have been
announced by the Department of
Agriculture.
The price of such quota in phase
one of the scheme is 2 c/l plus an
administration charge of `25 per
transaction.
Enclosed with the April milk account
is an application form for those who
wish to surrender quota into the
scheme and also for those who wish
to acquire quota on a temporary
basis in the current milk quota year.
Phase two of the scheme will be
administered in January 2015 when
the price of quota will be 1 c/l.
MILK ADVISOR
ON WEEKEND CALL
The following are the weekend
on call arrangements for emergency
milk issues for the next five weeks:
May 24th/25th
Jack Cahill
086 262 829 0
May 31st/June 1st/2nd
Denis Guir y
086 809 8639
June 7th/8th
Ger Hennessy
086 852 0792
June 14th/15th
Jack Cahill
086 262 829 0
May 21st/22nd
Maeve O’Connor
086 835 4808
INFORMATION DESK LO-CALL
NUMBER FOR
MILK RELATED
QUERIES IS
1890 200 840
1%6/)876)4368
Markets Report
World Markets
Excellent milk producing conditions
combined with strong milk prices have
led to a continuation of the trend of
high levels of milk output over the past
month. While demand remains strong,
there is no doubt that with bumper
levels of milk output in all the major
dairy export regions, an oversupply
situation has developed in dairy
markets, with prices reacting
accordingly.
New Zealand’s milk production
continues to surge, with a strong end of
season performance aided by good
pasture conditions. Officially, to the end
of February, milk output is up 7% for
the season to date, and some
forecasters are predicting that with a
good late season, that figure could rise
further.
The latest gDT auction, held on 6th
May saw a further decline in the TradeWeighted index, which fell 1.1%. The
biggest decline was in SMP, which fell
2.3% to `2,800/tonne. WMP dropped
1.7% to `2,820/tonne with 20,000
tonnes auctioned.
Butter showed a positive movement, up
1.6% to `2,800/tonne, still well below
the price achievable in the EU. The next
auction will take place on 20th May,
and is likely to see increased volumes
being auctioned due to the increased
milk availability in New Zealand.
In the US, April milk prices have risen
again, to reach new highs. This is
chiefly due to the strong performance
of US cheese prices during April, which
resulted from the temporary tight stock
situation in certain states.
Monthly
`50 Voucher
Winners
Looking down the curve, the domestic
prices for Cheese, Butter and Powder
all show price decreases for the rest of
the year, with falls of 10-15% being built
into the exchange traded future prices.
Currently butter is being traded at
$4,828/tonne and cheddar cheese is
priced at $4,582/tonne. Milk production
in March was 0.9% higher than 2013
with the aforementioned milk prices,
coupled with plentiful and affordable
feed availability, spurring production.
This has also incentivised increased
lactations, with the level of cows being
slaughtered back 10%; and the price of
springing heifers at historical highs of
$2,200/tonne. For the full year, the US
is forecast to be 2.4% ahead of 2013.
Australian milk output jumped in March,
up 3.8% on 2013, as Australian farmers
drive on milk production on foot of
increased milk prices. In Argentina, Q1
milk production is said to have been
impacted by heavy rains in some of the
principal milk producing states.
EU & UK MARKETS
Milk production in the EU continues to
significantly outperform the weatherimpacted 2013 season, with large
increases in production being seen in
most of the key dairy countries. Strong
milk prices and good weather and
fodder conditions are the key factors.
This has resulted in figures such as:
France +7%; U.K. +12%; Germany +4%
and Holland +4%. The level of milk
output has been such that there have
been many reports of milk being
trucked across Europe to avail of
processing facilities in countries that are
not yet at their peak milk production.
Nicholas Cooke,
Lodge,
Hospital,
Co. Limerick.
Donal Moynihan,
Gortnascarty,
Ballymakeera,
Macroom, Co. Cork.
Quite a lot of the additional milk has
been processed into cheese, with
30,000 tonnes more cheese produced
in January and February versus 2013.
The bulk of this is continental cheese –
Gouda and Edam – and with the
Russian market still proving difficult for
the Dutch and German producers, this
is being sold at weakened prices.
Butter prices have also fallen, albeit not
as dramatically as cheese, with the
Dutch price down `100/tonne through
May, to `3,420/tonne, with weaker
prices being spoken of for forward
business.
Powder prices have shed up to `300/
tonne over May, with SMP now at
`2,790/tonne and WMP at `3,220/
tonne. Export trades are proving
difficult with the continued weakness
of the US$ versus the Euro.
CO-OP SUPERSTORES
NEW ONLINE STORE
COMING SOON….
We are delighted to inform you
that we will shortly be launching
our new online store Shop for our FARM, HOME &
GARDEN Range at a time that
suits you and you can expect
delivery within 2-3 working days.
In addition, you will be able to
charge your online orders to your
Dairygold Credit Account
MORE TO FOLLOW ON THIS
NEXT MONTH……
Paul Woulfe,
Bridge View,
Dunganville, Ardagh,
Co. Limerick.
Use the Dairygold Postal Payment Envelope or pay by milk or grain offset and you could be a lucky winner
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Origin Green and the National Sustainable
Dairy Assurance Scheme
Almost 50% of all Dairygold milk suppliers have submitted
an application form to participate in the Sustainable Dairy
Assurance Scheme (SDAS). The number of Dairygold
suppliers with Bord Bia certification is continuing to grow on
a weekly basis. The amount of on-farm audits is anticipated
to grow significantly over the coming months.
To date there has been a great deal of cooperation between
Bord Bia, Dairygold milk suppliers and Dairygold milk
advisory personnel both in the preparation of the farm
inspections and in assisting with any outstanding issues that
may need to be resolved following the audit.
Benefits of participation in the Sustainable Dairy
Assurance Scheme (SDAS).
We would strongly encourage any supplier who has not yet
signed up to participate in the scheme to consider doing so
as there are many benefits to be gained, including the 0.1
cent per litre bonus for all Dairygold suppliers who complete
an application form in 2014 and who successfully complete
their audit.
To encourage early participation in the scheme this bonus
will be back dated to the month when the milk suppliers
lodged a signed application form to be a participant in the
scheme.
For suppliers who are already registered with the Bord Bia
Beef and Lamb Quality Assurance Scheme (BLQAS) there
is the option of doing a combined dairy (SDAS) and beef
(BLQAS) farm inspection audit particularly if their beef
certification is due to expire in the coming months.
Preparation for the farm inspection.
Once you have applied to participate in the Sustainable
Dairy Assurance Scheme (SDAS) you will be sent a Bord
Bia pack with information on the scheme. Once you have
been selected for audit you will then be issued with a
summary checklist of the main areas requiring your
attention before the audit.
The following is a summary of the main issues to be aware
of in preparation for the inspection.
Preparation Guideline
Recent water test if using private water supply
(Contact 1890 200 840 to arrange for water testing to be
completed by Enfer laboratories at a cost of `11 plus VAT)
Farm Records
(including Animal Remedies Purchases Record & Animal
Remedies Usage Record, Feed Purchases Records, up to date
Herd Register and Animal Movement Records)
Farm sign at entry to farmyard or dairy
(A free sign is available for collection at your local Dairygold
Co-op SuperStore or Co-op Store. Reference letter posted to
milk supplier posted 8th April 2014)
Dairy Health Certificate in date
(This information is provided to Bord Bia by Dairygold)
Updated Farm Safety Statement
(also known as Risk Assessment Booklet)
Milk Quality Reports from Milk Processor
(may include recent text messages from Dairygold or milk
statements)
Dairy
All openings in the dairy must be fully sealed / screened off.
The surfaces and equipment in the dairy must be washable and
maintained in a clean condition.
Milking Parlour
All surfaces must be washable and maintained in a clean
condition. Be able to demonstrate effective washing routine that
ensures milking equipment is clean and free of deposits.
Key points to remember!
UÊÊWorkshops and demonstrations - Dairygold and
Teagasc will be hosting a number of Bord Bia Sustainable
Dairy Assurance events outlining best practice for the
scheme on dairy farms to commence over the coming
months.
UÊ Date and time of audit - applying for participation
does not mean you will be immediately chosen for audit.
Before being selected for inspection in the Sustainable
Dairy Assurance Scheme, Dairygold milk advisory
personnel will be in contact with you regarding the
preparation for the audit. Once you have been contacted
by a Bord Bia Inspector you can then agree an appropriate
date for your audit.
UÊÊClose out of any outstanding issue(s) following
the audit – if there are some non-compliances (with the
exception of critical non-compliances) arising during the
audit then, in agreement with the auditor, these can be
closed out in an appropriate time-frame following the audit
in order for Bord Bia certification to be approved.
UÊÊHelp or assistance - for more information on any
aspect of the Sustainable Dairy Assurance Scheme please
contact your milk advisor or ask for a member of our milk
advisory team at 1890 200 840.
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Work to begin on new
Mallow Facility
Work is due to begin next week on the
significant re-development of Dairygold’s
Mallow Dairy Processing Facility at
Annabella, West End, Mallow.
This re-development will deliver a world-class
dairy processing facility, integrating current
operations with planned new facilities in order to
produce a suite of dairy ingredient milk powders
up to infant milk formal standards. The new
development is an essential element of
Dairygold’s Post Quota Plan to accommodate the
anticipated increase in milk flow, which will come
about with the end of EU milk quota restrictions in
April 2015.
The new processing operation in Mallow will be
larger in scale, cleaner, quieter and more efficient
than the existing facility. It will also incorporate
best environmental practice, enhancing the
protections already in place. The re-development
works will largely take place within the existing
site boundary, however, substantial improvements
to certain road and junction layouts are also
planned. There will also be provision for enhanced
pedestrian facilities on the public roads adjoining
the site.
The project will involve (in part) having a new 7.5
tonne Milk Dryer in operation in Mallow by March
2016 and a second one in place by 2019 or
earlier, depending on the speed of milk
production scale up in the surrounding hinterland.
When both Dryers are in place the Mallow facility
will be equipped to manufacture over 450 tonnes
per day of milk powders in varied specifications
up to Infant Milk Formula standard. Over 100 new
jobs, direct and indirect within the region, will be
generated from the activities on the site.
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