Farm News - Dairygold Agri Business
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Farm News December 2019
Dear Milk Supplier,
As we reach the end of 2019 and We will undertake this consultation
the end of the decade, it is an and forecasting with Members from
appropriate time to assess and early January 2020 in order to give
evaluate our Dairy business. Some the Society line of sight on
interesting facts are that the annual Members’ current intentions and
milk production from the Dairygold ambition towards 2025 and
Milk Supplier base has risen by beyond.
65% from 838m litres in 2009 to
1,390m litres in 2019. Over that Challenges at farm level
period, circa €425m has been As we come to the end of a very
invested in processing facilities busy year and look towards the This scenario, merits Member
across Dairygold’s 4 sites. coming milk season, we ask each consideration now, on whether
Milk Supplier to take some time continuing expansion in primary
This capital investment programme over the Christmas break and into processing (low return) is still
included investment in partnership January to think about their milk required or desired. Without doubt,
with TINE SA of Norway for production plans from 2020 to ongoing investment in primary
Jarlsberg Cheese production in 2025. Evidence is emerging that processing slows down and delays
Mogeely and collaboration with some farms have expanded to other investments in higher margin
Ornua at our Castlefarm Dairy their current capacity in terms of business activity.
Complex, Mitchelstown for the land availability, herd size, facilities,
development of the Kerrygold labour, etc. and with a continuing Sustainable growth
Butter Centre of Excellence. reliance on nitrates derogation Sustainability is a key consideration
facilitating environmental for Dairygold’s Members and for its
The decade has seen the compliance for many. Given the processing footprint. Your Society
development of 3 new Milk current scale of production, all cannot justify investment, if
Powder Factories, a new Cheese indications point to a lesser continuing milk expansion is not
Factory in Mogeely and an number of Milk Suppliers showing grounded from a sustainable
enhanced Cheddar Factory in signs of continued and significant farming base. Only the individual
Mitchelstown, along with a milk volume growth into the future. Milk Supplier can decide whether
complete regeneration of Whey to further expand their milk
Processing. In addition to the Challenges at processing level production or to hold steady at
increased processing capability, If milk expansion at farm level modest growth, so that a more
these investments have also continues at current trends and optimum balance can be achieved
delivered advanced technology Members tell us in January and over the next number of years.
and efficiencies in milk processing. February that they are committed
to further significant milk This would enable the relationship
Above all else this investment has expansion, then Dairygold, by itself between milk production and milk
enabled Dairygold to process all or in collaboration with others, will processing and commercialisation
your post-quota milk expansion to need to further invest in primary to align in a more sustainable
date and to continue to process all milk processing for peak 2024. manner for the benefit of all,
forecasted milk volumes up to improving market returns and milk
2023. As we all know, investment in price.
primary processing is very costly,
However, for milk expansion with a rule of thumb being that it Summary
beyond 2023 per our existing costs circa €12m per 1m litre extra The Milk Planning Census 2020 -
forecasts, we will require additional milk in peak week. Realistically, 2025 will commence in the first
investment in primary processing such an investment may only be week of January and will tell us
infrastructure, the extent of which needed for a six week peak each whether there is going to be
cannot yet be determined until we year. This challenge also exists for significant additional milk
have conducted the Milk Planning some other milk processors across production in the short to
Census 2020 - 2025 with all Milk the country. medium term. continues...
Suppliers.
Front page continued Milk Supply
Dairygold milk supply for November
If the forecasting points to Once the projected additional milk 2019 was down 12% on November
significant additional processing volumes are determined, 2018 milk volumes. Year to date milk
capacity being required in the Dairygold’s Board will be able to
supply is +4.2% versus 2018.
medium to longer term, then it will advise Members of the forecasting
simply be a question as to how the feedback and the options it
processing capacity required from presents for consideration and
peak 2024 will be structured in decision, in the immediate term. MILK ADVISOR
terms of product type and the ON WEEKEND
funding model. Finally, on behalf of the Board,
Management and Staff, I would like
CALL
I encourage all Milk Suppliers to to thank you for your commitment Arrangements for
engage fully with the upcoming and support to the Society during emergency milk issues
Milk Census. 2019. Wishing you and yours a December 2019 - January 2020
restful and Happy Christmas and
With the benefit of appropriate safe farming for the year ahead.
21 st /22nd December
farm planning and strategic William Ryan
reflection over the holiday period, Yours sincerely, 086 246 1633
we ask that each Milk Supplier
provides us with as clear an insight 23 rd /24 th /25 th December
as possible of their plans for the
next five years.
ALL MILK ADVISORS
Jim Woulfe 26 th /27 th December
Chief Executive
Denis Guiry
086 809 8639
28 th /29 th December
Dairy Health Certificate 2020 - Reminder Jack Cahill
086 262 8290
Each herd that supplies milk must be These certificates must be submitted
certified by your vet annually to meet to Dairygold each year. The 30 th /31 st December
specific animal health requirements recommended time to certify your
as specified by the Department of herd is at your annual herd test which Maeve O’Connor
Agriculture, Food and the Marine enables you and your vet to fully 086 835 4808
(DAFM). complete and sign the form while
inspecting the cows. 1 st January
Ger Hennessy
1 2 3 086 852 0792
There will no longer be On Page 1 - Veterinary On Page 3 - Herdowner 4 th /5 th January
a requirement to Certification of Compliance - Declaration of Compliance
submit a list of animal the vet must complete the - the herdowner must Denis Guiry
tag numbers with the number of animals presented complete the number of 086 809 8639
completed certificates to him as milk yielding animals presented to him
animals for certification as milk yielding animals to 11 th /12 th January
the vet for certification.
William Ryan
Please send the completed 2020 If you have misplaced your blank 086 246 1633
Certificate by the 31st December Dairy Health Certificate which was
2019 to your local Milk Advisor or to: sent to you earlier this year, please 18 th /19 th January
contact Dairygold Milk Advisory
Milk Advisory Department, Helpdesk on 1890 200 840. Jack Cahill
Dairygold Co-Op,
Clonmel Road, NOTE: Dairygold will not be in a position
086 262 8290
Mitchelstown, to collect milk from your holding from Information desk lo-call number
Co. Cork. 1st January 2020 unless it has received for milk related queries is
the fully completed certificate. 1890-200-840
Dairygold Co-Operative Society wishes all its Members,
customers, suppliers & staff a very happy and peaceful
Christmas and best wishes for the New Year.
Page 2
Calf-welfare compliance
While we can take pride in the Conscious of the challenges posed - This Dairygold policy which reflects
success of Ireland’s grass-fed dairy Dairygold, together with the national animal-welfare policy is
expansion since quota restriction was Department of Agriculture, Food and designed to protect Ireland’s
removed in 2015, the continuing the Marine (DAFM), and its peer milk reputation as a grass based dairy
expansion of the dairy herd presents processors countrywide, has added producer with animal welfare and
significant challenges which must be calf-welfare compliance as a specific sustainable production at the core of
addressed and managed on each additional requirement to its 2020 that reputation. This policy is
dairy farm. milk purchasing Terms & Conditions underpinned by the Bord Bia
for milk supply, as follows; Sustainable Dairy Assurance Scheme
In keeping with their strong dairy
(SDAS) audit.
heritage, almost 100% of dairy farmers • On-farm slaughter of healthy
care deeply about the health and calves is strictly prohibited. Milk Suppliers need to be aware that
wellbeing of their animals. This non-compliance in relation to the
• For 2020 and beyond,
commitment to animal welfare on Irish SDAS animal welfare criteria and
consequences will apply to milk
dairy farms has underpinned our failure to undertake remedial action
supplied from any supplier farm
international reputation for excellence will result in a farm losing its SDAS
where calf welfare issues are
in food production. membership. Milk will not be collected
detected, up to and including,
for food production from non SDAS
Regrettably, however, there have but not limited to non-milk
compliant farms.
been some suggestions of calf collection.
mistreatment on a very small number Dairygold has adopted and advocates
• All calves born on a holding must
of farms across the country in the past a zero-tolerance policy in relation to
be tagged and registered within
year. calf-welfare compliance on its Milk
twenty days of birth in accordance
Suppliers dairy farms and the Society
As a large milk processor with a key with the DAFM guidelines. (See
is fully committed to ensuring that
focus on the dairy customers and note 2 below for website link)
animal welfare practices on Irish dairy
consumers expectations our Society’s
• Adequate housing must be farms is fully compliant with DAFM
position on calf-welfare is very clear,
provided for expected calf and Bord Bia regulations.
any mistreatment of calves or poor
numbers to optimize their health,
calf welfare is totally unacceptable Beyond SDAS compliance, the
welfare and growth and to take
and cannot be tolerated. Considering management of calf-welfare in relation
account of potential weather
this and in anticipation of bigger calf to continuing expansion will involve
impacts. (See note 6 below for
numbers from the expanding dairy other strategies to minimize the
website link)
herd in 2020, there is a corresponding number of surplus bull calves. These
responsibility on every dairy farmer, to • In cases where any health issues include live exports, facilitating farm
ensure that the calf-welfare standards start to emerge, a dairy farmer to farm sales, improved dairy to beef
on their individual dairy farms are must ensure that early veterinary breeding genomics and the use of
upheld to the highest level. intervention is delivered to improving sexed semen.
ensure that calf mortality is
Dairy-expansion is not just about Working with the Minister for
minimised.
producing additional milk. To be Agriculture, Food and the Marine, and
sustainable, responsible expansion • Where a calf is not kept in a beef state agencies, the Irish dairy sector
must be balanced and consistent with system in Ireland or exported, will continue to coordinate and
a farm’s capacity to satisfy the any approved culling that might expand the existing range of science-
corresponding need to ensure quality be permissible must be restricted based dairy progeny to beef
control, sustainable labour, animal- to DAFM approved facilities programmes based on cutting edge
welfare provision and environmental which meet stringent Irish & EU genomics and animal health
compliance. animal welfare standards. technologies.
For further guidance
1. Familiarise yourself with SDAS and the calf welfare criteria in the Sustainable Dairy Assurance Scheme (SDAS).
www.bordbia.ie/farmers-growers/farmers/quality-assurance-schemes/sustainable-dairy-assurance-scheme-sdas/
2. Requirements of calf-registration and tracking procedures - DAFM
www.agriculture.gov.ie/animalhealthwelfare/animalidentificationmovement/cattle/irishbovineanimal
identificationsystem-overview/
3. Speak with your Veterinary Surgeon, Teagasc Advisor or your Local Co-Op Representative.
4. Refer to the Farm Animal Welfare Advisory Council (FAWAC) www.fawac.ie and the Teagasc website
www.teagasc.ie/animals/beef/calf-rearing/ for further guideline on calf-welfare matters.
5. Speak with Teagasc or your AI Advisor about the new Dairy Beef Index, designed to improve the value and
quality of dairy bull calves coming from the dairy herd.
6. You can find the DAFM’s Animal Welfare Guidelines for Dairy Herds on:
http://www.fawac.ie/media/fawac/content/publications/animalwelfare/DairyWelfareBookletA5100419.pdf
Page 3
Dairy Market Report
GLOBAL MILK PRODUCTION & TRADE
RUSSIA IMPORTS (Jan - Aug 2019 vs 2018)
Butter Cheese SMP WMP
+38% +10% +10% +154%
0.6%
CHINA IMPORTS (Jan - Sep 2019 vs 2018)
0.3% Butter Cheese SMP WMP
-36% +5% +30% +22%
Major Milk
Annual
Exporting
Bn Litres
Regions
EU 163 -7.8%
USA 96
New Zealand 22
Australia 8
FAO 2016 -1%
SUPPLY SIDE DEMAND SIDE
• EU milk production increased in October 2019 • In China cumulative imports of SMP & WMP (Jan – Sep 2019)
compared to the same month in 2018. have strengthened. Although imports have not further
deteriorated, African Swine Fever continues to supress
• New Zealand milk production decreased in Whey demand in the Far East.
October 2019 compared to the same month in 2018.
• Russia, China and the US are currently the top 3 major
• US milk production increased in October compared importers of butter and butteroil.
to the same month in 2018.
• In Mexico, imports of SMP and Cheese are down on year
• Australian milk production decreased in October ago levels.
2019 compared to October 2018.
• China remains the main global importer of SMP followed by
the Philippines and Indonesia.
MARKET OUTLOOK AND PRICING
Global Dairy Trade (GDT) Event 249 Butter Butter Milk Powder Cheddar Rennet Casein
3rd December 2019
-4.9% +1.6% +2.7% +4.9%
-0.5%
GDT Price Index from 2018 - 2019 $3,983 $2,846 $3,797 $8,047
1,450 Skim Milk Powder Whole Milk Powder
1,250
1,050
+1.9% +0.1%
850
650 $3,068 $3,331
450
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The latest GDT auction, event 249, saw the price index fall by 0.5%, following five consecutive increases. While AMF (-5.1%) and Butter
(-4.9%) dragged back the overall index, other product categories performed well. Global milk production is stable and seems in
balance with global demand for dairy products. As the tightness on the supply side looks likely to remain into the early months of
2020 downward pressure has not presented itself on the horizon just yet. Meanwhile, Brexit, China-US relations and other downside
influences to the dairy market that we have seen throughout 2019 prevail.
Monthly Michael G Tobin Frances Coffey Andrew & Hannah
Bellevue Park, New Inn Ballaree, Nenagh, O’Shaughnessy, Carrignamuck,
€50 Voucher Cashel, Co. Tipperary Co. Tipperary Coachford, Co. Cork.
Winners Use the Dairygold Postal Payment Envelope or pay by milk or grain offset and you could be a lucky winner!
Page 4
Beware of System Drift – Dr. Gráinne Hurley, Teagasc
Many striking messages were heard examples of pasture based dairy The table below shows the
at the Teagasc National Dairy industries that have increased output appropriate stocking rate based on
Conference in Killarney on December using bought-in feed which resulted how much grass your farm can grow.
3rd. The title of conference was Dairy in a significant decline in So, if you’re growing 12 tonnes grass/
Sustainability. Dr Laurence Shalloo’s competitiveness, profitability and an ha and feeding half ton bought in
repeated the message of efficiency increase in environmental footprint. feed/cow you should stock your farm
before expansion has been somewhat at 2.2cows/ha. Before looking at
realised, as 45% of our increased milk To increase the import of protein feed increasing stocking rate, you need to
output since 2007 has been due to that can be consumed by people look at how you can grow more grass
increased output per cow. such as soya, so as to feed a dairy rather than buying in more feed.
cow, that will in turn produce protein
If you compare family farm income on feed for people, is not a sustainable Although the beneficial impacts of
dairy farms between 2007 and 2019 for the future. A sustainable dairy stocking rate on grazing system
at a constant milk price, it has system in terms of profitability and productivity have been widely
increased by €23,000pa. This is environment can only mean reported, the impact of stocking rate
mainly due to increased efficiencies converting more grass into high value on environmental efficiency must also
such as increased fat and protein milk solids. We need to protect the be considered. We will have to
concentrations and increased grass image of our grass based dairy improve our grazing management
utilization. Dr Padraig French system that so many other countries and soil fertility as well as our use of
highlighted that grass utilization has are envious of. fertilizers, specifically nitrogen. There
increased by 16% on dairy farms are many technologies to increase
during this period and stated that To avoid slipping into system drift, our nitrogen use efficiency such as
expansion from increased grass identifying the appropriate stocking protected urea, low emissions slurry
utilization is very profitable. rate is the key strategic decision for spreading and the inclusion of clover
However, Padraig warned against the pasture-based dairy farms. in our swards.
biggest risk ahead for dairy farmers
which is system drift. System drift is Table: Optimum stocking rate for dairy farms
increased milk production from Pasture grown, t/ha
bought in feed. It reduces resilience,
tonnes supplement DM/cow 10 12 14 16
increases nutrient leaching, increases
0.00 1.5 2.0 2.3 2.6
carbon emissions and undermines
0.250 1.7 2.1 2.4 2.8
our marketing strategy. Padraig
0.500 1.8 2.2 2.5 3.0
highlighted numerous international
0.750 1.9 2.3 2.7 3.1
National Sustainable Dairy Assurance Scheme (SDAS)
REMINDER to be aware of SDAS Certification
All suppliers will need to be mindful of their certification expiry date. Completing the SDAS audit well in advance of the
certification expiry date should allow suppliers adequate time to close out any issues that may need to be addressed
following the audit and achieve certification.
Advice for preparing for a late Winter or AT THE END OF A LONG DAY
YOU SHOULD PUT YOUR FEET UP
early Spring audit LET US HANDLE THE PAPERWORK
If your SDAS cert due to expire during the busy calving period
(Feb to April) you might want to consider the following options:
o Pre-scheduling an audit date through Dairygold
PREPARE FOR BORD BIA
for a time that you know you will have help. & DEPT. INSPECTIONS
Face-to-face
o Scheduling an audit from now to January Consultations
before the workload increases significantly. Stress-free Record
You will not lose any time on your certification Maintenance
by doing this as your new certification will Unique Animal
extend on from the current cert expiry date. Tracking System
TAX DEDUCTIBLE • NATIONWIDE SERVICE
For further information contact the Dairygold Helpdesk on 1890- 023 884 7007
200-840 or your local Milk Advisor. agriaudits@gmail.com • www.agriaudits.ie
Page 5
Food Ingredients Europe
Launched in 1986, in its 33rd year,
Food ingredients Europe is the
global meeting place for all
stakeholders in the food ingredients
industry.
Fi Europe takes place biennially
between Frankfurt and Paris, uniting
the world’s leading food and
beverage suppliers, research and
development, production and
marketing specialists to showcase
the most diverse range of new and
innovative ingredients and services.
FIE 2019 took place in Villepinte Parc
des Expositions, Paris from 3rd-5th
December and attracted 27,000
visitors and over 1,700 exhibitors
over the three days.
Dairygold showcased its pasture-
based ingredients portfolio in the
Golden Zone with its own unique
and interactive stand.
This event enabled Dairygold to meet with existing and new
customers to discuss opportunities and project collaborations to
add value to our milk.
Co-Op Superstores sponsor 2020 Munster Hurling League
The launch for the Munster Hurling
League took place on Friday, the 6th
of December, at Co-Op Superstores in
Raheen, Limerick.
The launch was attended by Dairygold
CEO, Jim Woulfe and Munster GAA
Chairman, Liam Lenihan, along with
players, managers and selectors from
each of the six counties in Munster.
Speaking at the launch, Jim Woulfe,
Dairygold CEO said: “We are very
pleased to join forces once again with
Munster GAA in what is a most exciting
and competitive era for hurling in
Munster. Through our network of retail
stores and our online store
coopsuperstores.ie our business is
connected with the GAA across all
communities. Supporting Munster
Hurling is a natural fit for Co-Op
Superstores and Dairygold.”
The Co-Op superstores Munster
Hurling League will continue to run
right through Christmas with the final Pictured at the launch of the Co-Op Superstores Munster Hurling League 2020 which
being held on the 12th January 2020. took place in Dairygold’s flagship Retail Store in Raheen, Limerick, Jim Woulfe, CEO of
Dairygold with inter-county hurlers Seamus Callanan, Tipperary, Tim O’Mahony, Cork,
Jason Diggins, Kerry, Conor Prunty, Waterford, Diarmaid Byrnes, Limerick and David
Reidy, Clare.
Page 6
Teagasc | Animal Health Ireland
CALFCARE FARM EVENTS
Supported By Volac
Teagasc | Animal Health Ireland
CALFCARE FARM EVENTS
Supported By Volac
ARE YOU
READY
FOR THE 2020
ARE SEASON?
CALVING YOU
READY
FOR THE 2020
CALVING SEASON?
Do you have enough space to house 75% of the calves due to arrive on your farm next spring?
How many calves can be catered for on your farm already? Will you require extra space?
Have you considered temporary housing, if required?
Healthy calves
Do you have are happy
enough spacecalves.
to house
High75% of the calves
standards of calfdue to arrive
welfare on your farm
are essential. next spring?
Following best
practice
How many advice willcan
calves ensure that high
be catered for standards are already?
on your farm maintained.
WillUpdate yourself
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the current
and
Haveemerging issues around
you considered calf housing,
temporary welfare. if required?
Healthy,calves
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are happycalves are saleable
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howwelfare
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ensure your calves
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maintained. calves for
Update yourself onsale
the will be
current
discussed.
and emerging issues around calf welfare.
To achieve
Healthy, their
well full growth
reared calves throughout
are saleabletheir life,So
calves. calves
how must
do youbeensure
fed correctly fromwill
your calves the start.
Learn
attract a buyer? A list of requirements to assist dairy farmers preparing calves for sale willcalf
about the options available to feed young calves efficiently, without compromising be
health or performance.
discussed.
To achieve their full growth throughout their life, calves must be fed correctly from the start.
Wednesday 15 th
January DONAL
Learn about the options available to feed COTT
young calves efficiently, without compromising calf
Knockane,
health Donoughmore, Co. Cork. P32 FX90
or performance.
This series of CalfCare events is being run with the help and support of the local Co-op in each region.
Friday 17th January SEAN MOHERS
Croughmore Lower, Mitchelstown, Co. Cork. P67 FP93
This series of CalfCare events iswww.animalhealthireland.ie
being run with the help and support of the local Co-op in each region.
A5 Flyer CalfCare_2019_All_Events_V1.indd 1 www.animalhealthireland.ie 25/11/2019 09:21:14
Page 7Chlorine-Free Wash Chlo
rine-
F ree
From 1st January 2020
all Milk Bulk Tanks must use
Ensure thermostat is working correctly. Avoid stock piling products.
Chlorine-Free Detergent
Ensure Bulk tank goes through all wash
cycles post milk collection.
Never go back and use
remnants of old detergent in
Only buy from Teagasc recommended barrel or drum that has been in
listing(www.teagasc.ie). the dairy for a while!
Use a torch to inspect that the bulk tank Don’t buy in bulk and ensure
rinses sufficiently post wash and that it that the choices are matching
is properly drained. the quality issues on individual
farms. (If in a purchasing group
When changing detergents – get – ensure you are only looking
Z O N E
service technician to F
R REE
inspect,
INE-intake
flush out at chlorine free options for bulk
C H
and clean LO
detergent tubes, and
CHLOR tank). r i n e -Free
re-calibrate the intake volume if a new INE-FRE Chlo
detergent is used. E Z
Never ONE
skip a wash cycle post
milk collection.
Regularly check that the detergent
intake tubes from auto washers are Never reuse detergent washes
working correctly. from milking machine to wash
bulk tank.
Start each spring with a new drum of
chlorine free detergent.
Chlorine
Changeresidues are not
liners after permissible
2,000 milking's in dairy products. A small level of cross
contamination will lead to very
per unit as residues can build high levels of chlorates in milk.
up on
The cracked
two mainand damaged
chlorine particles.
residues that the dairy industry is focusing on is Chlorates
in powders which affects iodine metabolism in infants and Trichloromethane (TCM)
which causes butter quality issues.
The Dairygold Milk Advisory team is avaiable to offer help and advice in relation to any
and all aspects of the Chlorine Free Wash Programmes for Chlorates and TCM.
IF YOU HAVE ANY QUERIES PLEASE CONTACT YOUR MILK ADVISOR
What are Chlorates? What is Trichloromethane
Chlorates are formed by the degradation (TCM)?
of chlorine in chlorine based detergents.
Mitchelstown/ Mid CorkTCM
Regionarises from residues of detergents (containing active
Chlorates occur whenLimerick
drumsRegion
of detergent Mallow Region East Cork/CMP/Carrigaline/
Tipperary
Jack Cahill chlorine),
Ger Hennessy used to clean milking
Denis Guiry and milk storage equipment.
Ballinhassig/Killumney
that contain caustic and chlorine are stored
William Ryan
Tel: 086 2628290 To compete favourably
Tel: 086 8520792 Tel: 086 in the German market
8098639
MaeveTCM levels in
O’Connor
on farm for long periods
Tel: 086 2461633
(> 6 months).
E: jcahill@dairygold.ie E: ghennessy@dairygold.ie E: dguiry@dairygold.ie Tel: 086 8354808
butter need to be
E: wryan@dairygold.ie E: maeveoconnor@dairygold.ie
They can also occur if the detergent which < 0.024 mg/kg effective from 1st January 2020.
contains chlorine is not fully rinsed from the
When chlorine comes in contact with the fat in milk it binds
milking Milk
Dairygold machine and Department,
Advisory / or bulk tank after the
Clonmel Road, Mitchelstown, Co. Cork, P67 DD36. Tel: 025 24411 Lo-call: 1890 200 840
to form TCM. Sufficient rinse water must be available for
wash cycle.
both the milking machine and bulk tank.
The maximum limit permitted in milk is 3
The 2020 permitted TCM limit in milk is < 0.00124 mg/kg.
< 0.00375 mg/kg.
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