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Farm News November 2018
Message from the Chairman
Dear Milk Supplier, enabling the Society to maximise
commercial returns for our Milk
The last decade has seen immense Supplier Members.
growth in our industry. Dairygold’s
milk volumes have grown exponentially TINE
from 840 million litres in 2008 to over The Society has continued its
1.3 billion litres in 2018. Our Milk heritage of forging and strengthening
Suppliers have invested significantly commercial partnerships. This year
at farm-level to seize the potential of marked a significant milestone in our
the post quota era. Ambition for long-standing relationship with TINE,
growth and expansion remains very as work on the development of a
strong among Members with Dairygold state-of-the-art factory for the
milk volumes forecasted to increase to manufacture of Jarlsberg® cheese in
1.65 billion litres by 2025. Mogeely got underway. I’m pleased to
say that the project is progressing well In this symbiotic relationship, the
Investment and is on schedule with timelines. Kerrygold performance is very
Based on our Members’ ambitions, the Dairygold’s investment in the project beneficial to Members in milk price
Society has and is investing heavily will provide a Brexit-mitigating route to returns.
to enable it to fulfil its obligations to market for our Members’ milk.
process all the milk that our Members In every business, competition is to be
produce. Phase 1 of Dairygold’s Ornua expected. However, any price
investment strategy, between 2013 Meanwhile, Dairygold’s strong competition targeting the premium
and 2017, enabled the manufacturing commercial partnership with Ornua Kerrygold brand will erode the
facilities (primarily in Mitchelstown and continues to provide a critical route to commercial milk price return for milk
Mallow) to successfully process the market. The structure and facility of producers.
volume increases to date. Ornua, in which Dairygold is a c.20%
stakeholder, enables Ireland’s dairy Dairygold’s Board and Management
As announced in July, Phase 2 of our farmers to continue to own, develop, will continue to work commercially
modular investment plan is underway expand and profit through the Ornua’s with Ornua. Our focus will be the
with a further €130 million of strategic premium routes to market and achievement of the best possible
investments across the Co-Op’s commercial returns. returns for the Irish dairy industry in
manufacturing facilities, to ensure we international markets to enhance milk
continue to process the ever- Ornua provides a strategic route to price and dairy farm income, for the
increasing milk supplies and to market for up to 50% of Dairygold’s longer term.
maximise the commercial return third party exported milk volumes
for Members through an enhanced through its global marketing of Outlook
product mix. premium Irish cheese, butter and With further growth and investment on
powders. While this relationship is the horizon, the Society continues to
The investment is focused on mutually beneficial, it’s our duty to work closely with our farmers so that
maximising cheese manufacturing constantly challenge and hold Ornua together we can focus on the delivery
capacity, aligning whey processing to account for strong commercial of our key goal to constantly maximise
along with further milk drying returns. returns for our Members.
capacity, thereby maximising the
commercial opportunity with our Some 60% of the cream used to Yours sincerely,
Norwegian partners TINE. produce the iconic Kerrygold butter John O’Gorman
for the US market is supplied by Dairygold Chairman
Phase 3 which is currently in planning,
Dairygold to Kerrygold’s Centre of
will provide more advanced processing
Excellence on our Castlefarm site,
capabilities to produce higher margin/
Michelstown.
value-add nutritional products, further
Dairy Market Report
GLOBAL MILK PRODUCTION & TRADE
RUSSIA IMPORTS (Jan-Apr 2018 vs 2017)
Butter Cheese SMP WMP
-35% +6% -40% -62%
CHINA IMPORTS (Jan-Mar 2018 vs 2017)
Butter Cheese SMP WMP
+30% -5% +11% +10%
Major Milk
Annual
Exporting
Bn Litres
Regions
Increased milk production 2018 vs 2017 EU 163
Decreased milk production 2018 vs 2017 USA 96
New Zealand 22
Australia 8
FAO 2016
SUPPLY SIDE DEMAND SIDE
• EU milk production was the same in August 2018 as • China powder imports have weakened as a result of
in the same month in 2017. Cumulative EU milk production trade wars, higher domestic milk production and a
January - August period is 1.4% higher than the same weaker economic outlook.
period in 2017.
• US was the highest importer of EU cheese and butter
• New Zealand milk production increased by 6% in during the period January - July 2018, while imported
September 2018 compared to the same month in 2017. volumes of WMP and whey powder have decreased
compared to 2017.
• US milk production increased by 1.3% in September
2018 compared to September 2017. • Algeria was the main importer of EU SMP in the period
of January - July 2018, followed by China, Egypt and
• Australian milk production decreased by 3.6% in Indonesia. However, import volumes have since
August 2018 compared to August 2017. decreased, impacted by Algerian import licensing issues.
MARKET OUTLOOK AND PRICING
GDT Event 223. 6th November 2018 Butter Butter Milk Powder Cheddar Rennet Casein
Change in GDT Price Index from previous event
-2.0% -1.7% +0.8% -4.6% -2.9%
$4,045 $2,568 $3,250 $5,327
GDT Price Index from 2015 - 2018
1,450 Skim Milk Powder Whole Milk Powder
1,250
1,050
+1.2% -2.9%
850
650 $1,997 $2,655
450
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Dairy markets have weakened dramatically over the last month, largely driven by butter. Reports of higher milk volumes in key exporting
countries is likely to be the main driving force for the current weak market sentiment. In Europe, domestic consumption is flat as weak
demand for powder and butter is offset by a strong cheese demand. On the world market, the latest GDT auction saw a drop for the
fifth consecutive time, falling by 2%. Increases in buttermilk powder and skim milk powder were offset by declines in cheddar, rennet
casein, butter and whole milk powder.
Page 2
Milk Supply Dairygold milk supply for October 2018 was up 20% on milk volumes for October 2017.
Dairygold invests
€1m in Joint Farm
Development
Programme
The Minister for Agriculture, Food &
the Marine, Michael Creed TD, recently
launched ‘Together Towards 2021’, a
new Joint Farm Development
Programme between Dairygold
Co-Op and Teagasc, aimed at
providing the Society’s Members with
the best and most up-to-date
information to maximise their Mid-Cork farmer John Keane with Minister for Agriculture, Food and the Marine, Michael
profitability and sustainability at farm- Creed TD, Dairygold Chairman John O’Gorman and Tom Kelly, Teagasc at the launch of
level. the Dairygold/Teagasc Joint Farm Development Programme.
Speaking at the launch on the farm of financial management improvements
Dairygold and Teagasc’s new three-
Dairygold milk supplier John Keane, and milk quality scorecard gains.
year Joint Programme follows on from
Cloughduv, Co. Cork, Minister Creed
the success of the previous programme Dairygold Chairman John O’Gorman
said; “Collaboration and knowledge-
that saw over 8,500 people attend said: “This year marks the 25th year of
sharing is pivotal to ensuring the
public and special interest events held collaboration between Dairygold and
viability of farming for future
over the three-year period up to 2017. generations. I’m hugely encouraged Teagasc, a fitting time to embark on
to see that this Programme has taken another ambitious and specially
The Programme represents a €1 a holistic approach to providing tailored Joint Farm Programme that
million investment which brings the Dairygold Members of all scale and delivers real benefits for our Members.
total amount invested by the Co-Op in development, with the tools required This Joint Programme harnesses the
knowledge-transfer events to €7 to achieve efficiency and profitability power of collaboration between
million since its collaboration with in a sustainable manner.” Dairygold, our Suppliers and Teagasc
Teagasc began in 1993. to create an important, circular model
“I commend Dairygold for its continued of knowledge transfer.”
This new Joint Programme continues dedication to support and empower
Tom Kelly, Director of Knowledge
to keep sustainable milk production at Members to realise their on-farm
ambitions, armed with the best Transfer added: “This Joint Programme
its core and will promote the adoption
insights, innovation and skills.” – Together Towards 2021, is designed
of sustainable and resilient dairy
to be the vehicle through which
systems by Dairygold suppliers. The
A number of key performance Teagasc and Dairygold work together
Programme will also focus specifically
indicators have been set to ensure the to ensure a consistent delivery of
on labour efficiency, Leanfarm
Programme meets its objectives. relevant messages to all Dairygold
practices, biodiversity, water quality
Among those measured are; soil suppliers, leading to necessary
and herd health, with an increased
fertility improvements, grass utilisation, change and ultimately, an efficient and
collaboration with Munster AI, while
EBI increase, carbon footprint sustainable supplier base for
harnessing the use of technology
reduction, milk solids increase, Dairygold.”
across the milking enterprise.
Monday 26th November 8.00pm Garryvoe Hotel, Garryvoe
Tuesday 27th November 8.00pm Woodlands House Hotel, Adare
Area Information Wednesday 28th November 8.00pm Riverside Park Hotel, Macroom
Monday 03rd December 8.00pm Firgrove Hotel, Mitchelstown
Meetings 2018 Tuesday 04th December 8.00pm Oriel House Hotel, Ballincollig
Wednesday 05th December 8.00pm Springfort Hall, Mallow
Monday 10th December 8.00pm Cahir House Hotel, Cahir
MILK ADVISOR ON WEEKEND CALL
Arrangements for emergency milk issues November-December 2018
24 /25 th November
th
1 st /2nd December 8 th /9 th December 15 th /16 th December
Ger Hennessy Jack Cahill William Ryan Maeve O’Connor
086 852 0792 086 262 8290 086 246 1633 086 835 4808
Information desk lo-call number for milk related queries is 1890 200 840
Page 3
National Dairy
Conference 2018
‘Making Dairy Farming
More Sustainable’
LOYALTY REWARD
CARD 2018
Tuesday,
Thank you for your business –
your Loyalty is being Rewarded
27 November
th
Rochestown Park Hotel, Cork Dairygold is pleased to issue Members with
cash bonuses for the latest year of the
Wednesday, Loyalty Reward Scheme.
28th November The value of your Loyalty Reward Card may be redeemed at
Hodson Bay Hotel, Athlone any of Dairygold’s Co-Op stores to purchase everyday farm,
For more info see www.teagasc.ie/dairyconference2018 home and garden essentials.
Stock up on fuel for the colder months ahead of treat
your family to something special from Co-Op Superstores’
extensive Christmas range.
Mid-Cork Supplier to represent Society at National
Sustainable Producer Awards 2018
Dairygold is pleased to announce its wish him the very best of luck at the
nominee for Bord Bia’s upcoming awards night.
Sustainable Producer Awards 2018
as well as its regional winners, Trevor and each of Dairygold’s
who are excellent ambassadors for regional winners were chosen by
sustainability at farm-level. Dairygold’s Sustainability Team,
Ciara Donovan and Shane O’Donnell,
In recognition of his impressive who judged candidates based on
efforts and commitment to information gathered during the
sustainability, Mid-Cork Supplier SDAS audit.
Trevor Crowley from Lissarda, was
chosen to represent Dairygold at the Candidates were shortlisted based
prestigious awards which will be on their carbon footprint score, SDAS
held in the coming weeks. audit score and their sustainability
survey conducted during the audit. Overall winner:
Trevor will be one of 15 national Trevor Crowley with his wife Olive and
finalists nominated by milk son Gavin.
processors across Ireland for the top
honours. Each of the national finalists The Sustainable Producer Awards aim to:
will be visited by a panel of judges • Encourage sustainable farming practices for the future viability
made up of specialists from Bord Bia, of the dairy sector.
Teagasc and the Irish Farmers
• Identify and recognise farmers who are adopting sustainable
Journal.
practices in relation to the environment and farm resources.
We wish to congratulate Trevor on • Increase awareness of the benefits of implementing sustainable
his outstanding achievement and dairy practices.
Page 4
Mid-Cork Regional Winner: Mallow Regional Winner: East-Cork Regional Winners:
Aidan Reardon Elizabeth and John Sheehan Henry and Ann Bailey
Regional Winners were as follows:
East-Cork -
Henry and Ann Bailey, Monkstown, Co. Cork
Limerick -
Liam and Geraldine Herlihy, Bruree, Co. Limerick
Mallow -
Elizabeth and John Sheehan, Doneraile, Co. Cork
Mid-Cork -
Aidan Reardon, Ballinhassig, Co. Cork
Mitchelstown -
Michael McGrath, Ballylanders, Co. Limerick
Tipperary -
Limerick Regional Winners:
Tom and Margaret Horan, Cashel, Co. Tipperary
Liam and Geraldine Herlihy, with Jack Cahill and Shane
O’Donnell, Dairygold
Tipperary Regional Winners: Mitchelstown Regional Winner:
Tom and Margaret Horan Michael McGrath with his son Sean and William Ryan, Dairygold
Andrew McGrath Garranroe Farm Ltd Luke Murphy
Monthly
Ballinahown, Garranroe, Scart East,
€50
Fermoy, Patrickswell, Clogheen,
Voucher
Co. Cork. Co. Limerick. Co. Tipperary.
Winners
Use the Dairygold Postal Payment Envelope or pay by milk or grain offset and you could be a lucky winner!
Page 5
Ideas of the month
During the winter housing period, use lime as a cost effective “Liming is important on this farm, used in the
method to improve hygiene of cubicles. Below are innovative tools prevention of mastitis. We used four tonnes
to increase efficiency of lime spreading. Consult your farm advisor of lime on the cubicles during the housing
period last winter”
for your choice of lime. John Walsh
(2017 NDC Awards Winner) 110 cows
Liming Cubicles at Housing
Ag Mini – Provides for an even and
economical spread within 3 feet.
Rechargeable battery provides for 2 hours
of continuous use.
BOBMAN – Scrapes slats, sweeps cubicle
beds, and spreads an even layer of bedding
all in one pass. Diesel engine, 1WD or 3WD.
Vink Cubicle lime spreader
– Powered by cordless drill to spread out
bedding materials quickly and easily.
Adequate Safety Equipment
Maxi Therm Gloves
Dust Mask
Goggles
Leanfarm training schedule
Date Region Event information
26th November 2018 Mid-Cork Time at hotel: 10.30 to 13.00
28 th
November 2018 Mitchelstown Group size: 25 - 30
30th November 2018 East-Cork Refreshments: Tea, coffee &
fingerfood provided
03rd December 2018 Mallow
05th December 2018 Limerick
What’s Involved? • Training sessions will run from • If you would like to attend a
• Dair ygold’s Continuous 10.30am to 2pm and will include a Leanfarm training event, please
Improvement teams will hold farm visit to demonstrate how lean contact lo-call 1890 200 840.
Leanfarm training sessions at can be applied at farm level.
various dates to take Members • Training is open to Dairygold
through the techniques and Suppliers, their spouse/partner, son
principles. or daughter.
Page 6
WINTER FARM SALE
Galvanised 40” Fleming Heavy
Heavy Duty SAVE Pumped SAVE Duty Reversible SAVE
Circular €44 Wheel Yard €100 All Rubber €100
Feeder Scraper Yard Scraper
0747525 0720302 0721821
WAS €229 WAS €399 WAS €599
NOW NOW NOW
€ 185 € 299 € 499
15L Heavy Duty Rubber Cow Mat JFC 170L Milk
Black Bucket - 6ft x 4ft x 17mm Kart Complete SAVE
0512353 0742363 with 220V Mixer €200
& 12V Pump
BUY BUY 0740438
3 FOR 4 FOR.99 WAS €2100
€4.49 €159 NOW
€39 each € 1899
Shop Online @ www.coopsuperstores.ie
for delivery direct to your farm !"
11. Co-Op Farm Newsletter A5 ad November 2018.indd 1 12/11/2018 12:20
Dairygold’s new and improved ONLINE SERVICES PORTAL
Access via Members Login on
www.dairygold.ie or www.dairygoldagri.ie
CURRENT USERS:
Current Online Service users must create
What it offers Members and Customers: new passwords via the ‘Forgot Password /
New User’ link
Extensive Suite of Milk Supply and Trading Information
User-Friendly Service NEW USERS:
Intuitive Navigation Email your Account Number (7 digits),
Enhanced Management Tools Account Name and Contact Number to
Monthly Milk and Trading Statements gateway@dairygold.ie
Feed and Fertiliser Ordering System Or contact Dairygold’s Milk Advisory
Online Accounts Payment Department on 1890 200 840.
Downloads for Agrinet and Kingswood
Increased Reliability
Mobile Compatible
For more information email: gateway@dairygold.ie
Page 7
WE’VE GOT WINTER
DOSING COVERED
Albex 10% 5L + 1L FREE Closamectin Pour On 1L Dectomax Pour On 3L Eprinex Multi Pour On 5L
0370032 0370639 0370931 0371008
WAS €88 WAS €155 WAS €265 WAS €375
NOW NOW NOW NOW
€ 70 €150 €250 € 350
Fasinex 240 5L Mastermectin Spot On 1L
0371017 Pour On 5L Pour On with
WAS €360
0372339 Flexi & Gun
0374578
NOW WAS €100
€335
NOW WAS €110
€ 82 NOW
€ 99
Superchoice
M I N E R A L S
Superchoice Minerals - 20Kg Buckets
- Precalver, Beef, Hi-Mag, Fertility Booster & More
BUY 5 GET 6TH FREE *NO MIX & MATCH
Shop Online @ www.coopsuperstores.ie
for delivery direct to your farm !"
11. Co-Op Farm Newsletter ad November 2018.indd 1 12/11/2018 11:56
Page 8
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