FARMFARM NEWSNEWS - DAIRYGOLD AGRI BUSINESS

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FARMFARM NEWSNEWS - DAIRYGOLD AGRI BUSINESS
Farm     News
                                                        Farm     News                                             December 2020

2020 - A year like no other!
Dear Milk Supplier/Member,
The end of the year is fast               and Agri trade, but equally in terms
approaching, in what has been             of Member Funding. Your Board
described as “a year like no other”.      approved a Member Funding
I write this note to inform you about     proposal in June, and I am pleased
your business, reflecting on a range      to say the Loan Note Scheme
of activities and achievements            successfully reached its target of
within the Society, despite the           €8 million one month ahead of
prevailing COVID-19 Pandemic.             schedule. We look forward to
                                          introducing another Loan Note
We commenced the year with the            Scheme in 2021.
detailed Milk Planning Census, the                                                    business well, in an unprecedented
outcome of which gives us some            The Agri and Retail business                environment. From a business
certainty in relation to your ambitions   completed its Store Investment              perspective, I’m pleased to say that
as Milk Suppliers. The Census             Plan, including the integration of          we have coped very well with the
revealed steady milk production           certain Stores, whereby the                 COVID-19 Pandemic situation. In
growth ambitions of +2.6% CAGR            infrastructure and locations are            excess of 350 staff have been
up to 2025. I am pleased to say, that     optimised for both service and              working remotely, so for the
based on the Census data,                 efficiency. Overall, it has been an         Leadership Team, managing the
Dairygold now has the milk capacity       excellent year from an Agri Retail          business via Microsoft Teams
in place to deal with that growth         Store trading perspective, amid all         meetings, it has been different but
rate to 2025 and when we look out         the challenges presented by                 very successful. With the emergence
to 2030, with some modest capital         COVID-19.                                   of reliable vaccines over the next
investment, we have a reasonable                                                      six months, we expect that the
line of sight for the decade ahead.       Despite the significant Brexit              Pandemic will be overcome and
                                          uncertainty and COVID-19 challenges,        that it will be confined to history in
Our Dairy Ireland Business                our Overseas Businesses responded           as short a period of time as possible.
successfully concluded the €130m          quickly to realign their operations,
Capital Investment Programme, on          after they were particularly impacted       Despite all the challenges that 2020
time and on budget. The standout          by the demise of the Food Service           brought, it has been a rewarding
achievements were the construction        sales channel from March.                   year in so many ways and through
and commissioning of the N5 Drier,                                                    the co-operation of all Stakeholders,
on the Mallow Nutritionals Campus,        As we end 2020 and approach                 the business has coped admirably.
the Demin Whey Processing plant           2021, our focus moves away from             I am pleased to say the organisation
on the Castlefarm Dairy Complex           construction projects and milk              is in good shape at year-end and
and the Mogeely investment with           capacity matters and shifts initially       we look forward to 2021 with
our partners Tine SA for the new          to an End to End review, focussing          optimism.
Jarlsberg Cheese Manufacturing            on the efficiency and optimisation
facility. Once again, we experienced      of all processes, following the major       Wishing you and yours every good
record peak week milk deliveries of       Capital programme. In addition,             health and happiness this festive
44.5 million litres, with record milk     with the recent establishment of            season and stay safe.
solids. Right now, we are on target       our Health and Nutrition Business
to assemble and process 1.425             unit, the focus turns to higher             Yours sincerely,
billion litres of milk in 2020, an        margin business activities and
increase of 2.5% on prior year, the       opportunities.
highest ever intake in the Society’s
history.                                  A sincere thank you to all Dairygold
                                          Stakeholders for their support,                                      Jim Woulfe
Member support is very much               flexibility and loyalty this year, all of                        Chief Executive
appreciated in terms of milk supply       which enabled the Society to do its
FARMFARM NEWSNEWS - DAIRYGOLD AGRI BUSINESS
Dairy Market Report
                                                                            GLOBAL MILK PRODUCTION & TRADE
   *Denotes Estimate                                                                                                                                            RUSSIA IMPORTS (Jan-Sep 2020 vs 2019)
                                                                                                                                                                  Butter Cheese         SMP      WMP

                                                                                                                                                                     +7%    +47%        -37%     -28%

                                                                                                                     1.4%*
                                                                                                                                                     CHINA IMPORTS (Jan – Aug 2020 vs 2019)
                                              1.6%                                                                                                    Butter Cheese        SMP         WMP

                                                                                                                                                       +41%      +14%      -6%         0%

                                                                                                                                              Major Milk
                                                                                                                                                          Annual
                                                                                                                                              Exporting
                                                                                                                                                         Bn Litres
                                                                                                                                               Regions
                                                                                                                                             EU            163                  34%*
                                                                                                                                             USA           96
                                                                                                                                             New Zealand    22
                                                                                                                                             Australia      8
                                                                                                                                                    FAO 2016                                            0.5%

                                              SUPPLY SIDE                                                                                              DEMAND SIDE
 • EU milk production increased in October 2020                                                                             • In China, imports of SMP and WMP are down (-6%). In the
 compared to the same month in 2019.                                                                                        EU SMP imports are down (-28%).

 • US milk production increased in October 2020                                                                             • In Japan, while EU market share increased (+39%), overall
                                                                                                                            cheese imports decreased (-6%) Q1-Q3 2020 compared to
 compared to 2019.
                                                                                                                            the same period in 2019. The US also imported less cheese
 • New Zealand milk production increased in October                                                                         (-11%). In Russia (+7%), South Korea (+14%) and China (14%)
 2020 versus prior year.                                                                                                    cheese imports increased.

 • Australian milk production increased in October                                                                          • Demand for butter and butteroil strengthened in China
                                                                                                                            (+41%), Russia (+7%), the US (+%) and Australia (+13%)
 2020 compared to the same month in 2019.
                                                                                                                            but weakened in the EU (-42%) and the Philippines (-14%).

                                                                             MARKET OUTLOOK AND PRICING
GDT YTD 2020                                                        YTD 2020
                                                                                                                               WHOLE            SKIM
                                               Whole Milk Powder Pricing (EUR)
                                                                                                                                MILK            MILK             BUTTER           MILK FAT         CHEDDAR
                                                                            European PZ                                       POWDER           POWDER
                                                                            NZ GDT

 3,150                                                                                                                          -6.1%          -12.2%             -8.3%           -23.4%            -17.3%
                                                                                                                               €2,659           €2,414            €3,331           €3,575          €3,2064
                                                                                                                              (01/12/2020)     (01/12/2020)      (01/12/2020)     (01/12/2020)     (01/12/2020)

                                                                                                                               €2,820           €2,709            €3,606           €4,412           €3,594
 2,900                                                                                                                        (07/01/2020)     (07/01/2020)      (07/01/2020)     (07/01/2020)     (07/01/2020)

                                                                                                                                        INDEX                  1039
                                                                                                                                                           (07/01/2020)
                                                                                                                                                                                1012
                                                                                                                                                                           (01/12/2020)
                                                                                                                                                                                             -2.7%
 2,650                                                                                                                       Despite an unbalanced supply/demand picture the dairy market has
                                                                                                                             remained relatively stable throughout 2020. COVID-19 changed buying
                                                                                                                             patterns throughout the World this year and will continue to do so as
                                                                                                                             economies emerge from lockdown in 2021. There are several significant
 2,400                                                                                                                       uncertainties, in particular the as of now unknown Brexit outcome,
                                                                                                                             however despite this, there has been an uplift in activity in the market in
         03-Jan

                  03-Feb

                           03-Mar

                                    03-`Apr

                                               03-May

                                                        03-June

                                                                  03-July

                                                                              03-Aug

                                                                                       03-Sep

                                                                                                03-Oct

                                                                                                         03-Nov

                                                                                                                   03-Dec

                                                                                                                             recent weeks. Notably demand for cheddar remains stable globally and
                                                                                                                             has lifted slightly in the UK as a result of stock building pre-Brexit.

                                                                                                                                                                                    Use the Dairygold Postal
                                    Monthly                         Aine Ryan,

  €50
                                                                                                                  Donal O’Sullivan,                       Liam Philpott,
                                                                                                                                                                                     Payment Envelope or
                                    Voucher                        Cahernahalla,                                     Cronody,                             Knockancolon,
                                                                                                                                                                                   pay by milk or grain offset
                                                                   Cappawhite,                                       Dripsey,                                Kanturk,
                                    Winners                         Tipperary.                                       Co. Cork.                              Co. Cork.
                                                                                                                                                                                       and you could be
                                                                                                                                                                                         a lucky winner!

 Page 2
FARMFARM NEWSNEWS - DAIRYGOLD AGRI BUSINESS
Milk Supply                    Dairygold milk supply for November 2020 was +6.71% on November 2019 milk volumes.

2021 Milk Volume Forecasting                                    URGENT - Dairy Health Certificate
begins in December                                              Reminder for 2021 milk collection
In December 2020, each Milk Supplier will receive a             Each herd that supplies milk must be certified by your vet
statement of his/ her previous three years Milk Supply (2018,   annually to meet specific animal health requirements as
2019 and 2020 Year to Date) to help in completing their         specified by the Department of Agriculture, Food and the
2021 milk volume forecast.                                      Marine (DAFM).

                                                                These certificates must be submitted to Dairygold each
Your Milk Volume Forecasts can be completed on the
                                                                year. The recommended time to certify your herd is at your
Gateway Member Portal. A sample of the form is shown
                                                                Annual Herd Test which enables you and your vet to fully
below.
                                                                complete and sign the form while inspecting the cows.

                                                                                                1
                                                                  There will no longer be a requirement to submit a list of
                                                                  animal tag numbers with the completed certificates

                                                                                2                             3
                                                                  On Page 1 -                       On Page 3 -
                                                                  Veterinary Certification of       Herdowner Declaration of
                                                                  Compliance - the vet must         Compliance - the herdowner
                                                                  complete the number of            must complete the number
                                                                  animals presented to him          of animals presented to him
                                                                  as milk yielding animals          as milk yielding animals to
                                                                  for certification                 the vet for certification.

                                                                Please send the completed 2020 Certificate by the 30th
                                                                of December 2020 to your local Milk Advisor or to:
                                                                Milk Advisory Department, Dairygold Co-Op, Clonmel
                                                                Road, Mitchelstown, Co. Cork.

                                                                If you have misplaced your blank Dairy Health Certificate
                                                                which was sent to you earlier this year, please contact
                                                                Dairygold Milk Advisory Helpdesk on 1890 200 840.
                                                                NOTE: Dairygold will not be in a position to collect milk from your
                                                                holding from 1st January 2021 unless it has received the fully
                                                                completed certificate.

   MILK ADVISOR ON WEEKEND CALL                                    MILK ADVISOR ON WEEKEND CALL
  Arrangements for emergency milk issues DECEMBER 2020             Arrangements for emergency milk issues JANUARY 2021

    19 th /20 th December            25 th December
       William Ryan                    ALL                               1 st January                  2nd /3 rd January
      086 246 1633                MILK ADVISORS                        William Ryan                     Jack Cahill
                                                                       086 246 1633                    086 262 8290
   26 th /27 th December          28 th /29 th December
        Jack Cahill               Maeve O’Connor
    086 262 8290                    086 835 4808                       9 th /10 th January              16 th /17 th January
                                                                       Ger Hennessy                    Maeve O’Connor
                   30 th /31 st December                               086 852 0792                     086 835 4808
                       Denis Guiry
                    086 809 8639
          Information desk lo-call number for milk                          Information desk lo-call number for milk
             related queries is 1890-200-840                                   related queries is 1890-200-840

                                                                                                                         Page 3
FARMFARM NEWSNEWS - DAIRYGOLD AGRI BUSINESS
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Page 4
All I want for Christmas…                                                                       Dr Gráinne Hurley, Teagasc
As workload has lightened with a lot of   trips or falls in the dark whilst doing     but very effective idea especially if you
cows dried off it’s a good time to plan   their work. Maybe invest in floor mats in   have a couple of different people
and prepare for the spring ahead. It      the milking parlour pit which can ease      milking throughout the spring.
can be a good idea to discuss with        back and knee sores. Small changes in
people who worked with you on the         practice or small investments could         The second time saving idea Tom is
farm last spring what worked well and     make a huge difference to getting a job     using is the Batt-latch. This is an
what didn’t. How can facilities or work   done easier.                                automatic gate opener with a bungee
practices be improved that could make                                                 strap that you attach to either post of
next spring’s calving period more         I was recently out with the labour          your paddock entry. You only need one
efficient. Have a chat with any hired     management focus monitor farmer Tom         of these small gadgets that you attach
labour and any family members that        O’Connell and I saw two excellent           to the paddock cows are in and move
worked on your farm. They may see         ideas that would save time next spring.     on with you to next paddock.
how something can be done better –        For better communication and to avoid
                                          antibiotic milk going into the bulk tank    You set a time you want your cows to
its good to get a different perspective                                               leave the paddock. Once this pre-set
from another pair of eyes.                with freshly calved cows, Tom uses a
                                          simple but clever colour coded idea.        time is reached the spring gate i.e.
For example maybe properly hanging                                                    fence wire is released allowing the
gates in a calf shed would make           So, for example when cows calve on          herd to make its way back to the yard.
cleaning out of the calf house easier.    Monday, Tom puts on a red leg band on       Some Batt-latches can be opened by
Could you have a better place to store    the cow in the parlour at the first         ringing a phone number at any time.
milk replacer and calf nuts – can you     milking, on Tuesday this may be a           This is another great labour saving tool
store them nearer the calf house.         green leg band, Wednesday a yellow          as it could save considerable amount
Would investing in a milk trolley be      band etc. Depending on what dry cow         of time bringing cows in during the
easier rather than drawing buckets of     tube Tom is using , if milk withdrawal is   year.
milk across the yard or even look at      for five days for example – he knows
                                          then that all the red leg bands come off    Also in the spring where cows are on/
pumping milk from the dairy down to a                                                 off grazing for 3 or 4 hours and you get
calf shed.                                the cows on a Friday and their milk is
                                          safe to go into the tank.                   distracted for example with a calving in
Could you install a water heater in the                                               the yard – at least the gap is open in
calf shed? Have you an infra-red lamp     Up on his chart all he has written is the   the field and the cows can come back
working and ready or maybe invest in      days of the week and the colour of the      to the yard themselves which will also
some calf jackets. Every farmer should    leg bands. No need to write down a          reduce the risk of poaching at this time
have a good head lamp to minimize         whole list of cows. This is very simple     of year.

                                             Ideas of the month
    Do you need a Delvo Test Kit?
    Steps Taken to Prevent
    Antibiotic Contamination
    • Every cow is tested before resuming supply.
    • RED ankle band is placed on fresh calvers and
      RED double band on a treated cow.
    • Test the tank while treating cows.
    • Fresh in date ampules are ordered every Spring.
    • Clip tails and freeze brand at drying off and 		               “We wouldn’t be without the Delvo kit.
      again when ok for tank post calving.                           We have 100% peace of mind with no
    • Separate housing and paddock for treated cows.                   rushing anywhere with a sample”
            “It is important to keep accurate                                John and Emma O’Connor
         records and we adopt an approach of                                  Derryclooney, New Inn,
                 ‘if in doubt keep it out’…..”                                 Cashel, Co Tipperary
                  Note: Delvo Test Starter Kits are available to purchase online from www.coopsuperstores.ie

                                    Leanfarm - Saving time, effort and money
                                                                                                                     Page 5
Dept of Agriculture clarify new regulations for 2021
If your stocking rate is ≥ 170 Kg N/Ha (before exporting slurry) then you are required to do the
following from 2021 onwards:
1. A maximum crude protein content of         must be used for the application of           5. Water troughs must be sited more
15% is permissible in concentrate             slurry on holdings with stocking rates ≥      than 20m away from watercourses as
feedstuff fed to grazing livestock on         170 Kg N/Ha but export slurry to stay         identified from the OSi 1:5000 map,
the holding between 1 April and 15            out of derogation. Derogation farmers         from 1 January 2021.
September. This measure is focussed           must use LESS from 12 January 2021
on dairy cows and cattle over two             onwards. Invoices and records of              All farmers are required to do
years and does not apply to livestock         applications rates and location must be       the following in 2021 onwards:
under two years. Higher levels of crude       retained as they may be requested to
protein can only be fed if justified and      be submitted to DAFM.                         6. Water may not be allowed to run
certified by compounder, supplier of                                                        directly off a roadway into a water-
feed, nutritionist or agricultural advisor.   4. Where bovine livestock have direct         course. A watercourse is defined as
Receipts of purchase must be kept for         access to water, a fence must be placed       what is shown as a blue line on a
5 years.                                      at least 1.5m from the top of the             1:5000 scale OSi map. All roadways
                                              riverbank or water’s edge (as the case        must be cambered away from
2. The liming programme must be put           may be) by 1 January 2021. It will be         watercourses even if flat and if a new
in place which will be 4 years in duration    permissible to move livestock across a        roadway is to be installed parallel to a
and a minimum 25% of lime must be             watercourse to an isolated land parcel        watercourse, a 1.5m distance out from
spread in 2021 (Lime applied prior to         where necessary, provided that both           the watercourse must be put in place
2021 can be included, provided it was         sides of the watercourse are fenced           with fences on both sides of the road. If
spread post soil analysis but the             (i.e. to prevent bovine access up or          a road is already in situ running parallel
balance of lime must be spread over           down the river). Conacre land must be         to a watercourse, it does not need to
the 4-year programme commencing               temporarily fenced when grazed if not         be moved but an earthen bank must be
2021). The purchase invoices must be          already fenced off. If fencing is currently   placed on the watercourse side and a
retained as they may be requested to          less than 1.5m out from the watercourse,      fence installed (if the earthen bank is
be submitted to DAFM.                         then it must be moved out to that             not stock-proof).
                                              distance. All types of appropriate
3. From 15 April 2021, low emission           fencing is acceptable including a stock-
slurry spreading (LESS) equipment             proof natural hedge/ditch or wall.

                                  VACCINATION PROGRAMMES
                                         AVAILABLE
               Vaccination is one of the most cost-effective ways to reduce disease within
                 your herd and it provides optimum protection when carried out correctly.

               Expert advice is available to you from your local Co-Op Animal Health Ltd
               (CAHL) Representative. They will tailor a vaccination plan specific to your herd.

                                     Enquire at your local Co-Op Superstores today

                                                www.coopsuperstores.ie

Page 6
Animal Health Ireland | Teagasc

CalfCare Virtual Week
                                               18-21 January 2021
AHI and Teagasc are working together in January to run their annual series of CalfCare
events. This time we are going virtual and covering a wider range of topics relating to
calf health. CalfCare Virtual Week runs from Monday January 18th and comprises
 of a combination of webinars, videos, podcasts and supporting newspaper articles.
   More details and links to the webinars and podcasts will be available in January.

  LIVE     MON 18 JAN                                        TUE 19 JAN
             TODAY’S TOPICS                                    TODAY’S TOPICS
     A focus on calf housing and preparing              Video clips and podcast on the
       for the calving season. Questions               1,2,3 of colostrum management,
        answered by a panel of speakers                colostrum quality and managing
      from AHI and Teagasc experienced                     Johne’s disease at calving
        in the area of calf health in a live
               webinar at 7.30pm

  LIVE    WED 20 JAN                                       THUR 21 JAN
             TODAY’S TOPICS                                   TODAY’S TOPICS
     Vaccination of the pregnant cow and               Video clips and podcast on the
     common diseases of the young calf.               guidelines for calf feeding - milk
       Questions answered by a panel                   and concentrate feed into the
      of speakers from AHI and Teagasc                     diet of the young calf
    experienced in the area of calf health
          in a live webinar at 7.30pm

   VIDEOS WILL BE RELEASED EACH DAY THROUGH SOCIAL MEDIA AND ON THE AHI AND TEAGASC WEBSITES

              This series of CalfCare events is being run with the help and support of:

                     AnimalHealthIreland.ie | Teagasc.ie

                                                                                               Page 7
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         Dairygold’s improved portal

Access via Gateway Login on
www.dairygold.ie
                                                  Opt in option to go paperless with your milk and
Our aim is to continue to develop and enhance     trading statements on Gateway coming in 2021. For
Gateway in line with the changing needs of our    enquiries contact your Milk Advisor or Area Sales
Members and Customers.                            Manager.

USERS:                                               Additional Milk data
 For initial set-up, please email your Account      Milk Dashboard
  Number (7 digits), along with the Name on
  your account and Mobile Contact Number to
                                                     Milk Supply % Estimator
  gateway@dairygold.ie                               Downloadable PDF Nitrates Report
  Or contact Dairygold’s                             Downloadable Forms, Publications
  Milk Advisory Department
  on 1890 200 840.                                    and Documents

               For more information email: gateway@dairygold.ie

Page 8
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