Farm NewsApril 2018

CO-OP SUPERSTORES REMINDS YOU TO ALWAYS

THINK SAFETYWHEN OPERATING FARM MACHINERY

OR HANDLING LIVESTOCK

Dairygold led the way by becoming the first Co-Op to import fodder to alleviate the hardship for farmers.

Circa 1,000 Member farmers availed of the emergency supplies of fodder which were imported and distributed across Dairygold’s branch network in a major logistical operation carried out over a 10-day period. More than 230 loads of fodder were imported from the UK since the first consignment for Dairygold arrived in Ireland on Thursday 5th April.

The Society was the first to secure haylage and hay from abroad which highlighted the critical shortage of feed on a national level. Dairygold recognised that the importation was essential to alleviate the current shortage of fodder for Member farmers who are struggling with a long winter followed by the unseasonably cold and wet spring which significantly delayed grass growth.

It had been working with Members to source fodder from locations around Ireland but when stocks began to significantly tighten and the situation became more acute over the Easter weekend, an emergency action plan was put in place. Within four days, imported fodder began to arrive in Ireland for distribution to Members.

The efficiency and success of the operation was greatly due to Dairygold’s supplier relationships and operational experience developed from the previous fodder crisis in 2013 coupled with an intensive level of Member liaison which enabled the Society to effectively allocate provisions to those most critically in need.

Fodder was charged at the UK cost price while the Fodder Import Support Measure will contribute to a portion of the transportation costs incurred by Dairygold.

Dairygold supplier Dan Hallissey was among those who collected the

emergency fodder supplies which were delivered to Ballymakeera Co-Op. “The cows had a very long winter. The supplies have run out so this hay was a lifesaver altogether,” he said.

Dairygold Chairman John O’Gorman said: “We had no doubt that the imported fodder was essential and we were proud to lead the way and highlight the devastating situation which was affecting farmers.”

“I wish to sincerely thank everyone who contributed and supported our efforts from those on the ground who shared and offered their excess fodder to neighbouring farmers, to those who helped us to offload bales at the branches, to the team in Dairygold who worked round the clock to coordinate the operations.”

“The fodder challenges have demonstrated how in the face of adversity, farmers and the Co-Operative industry came together to support one another in the true Irish spirit of ‘meitheal’.”

Solidarity and support through fodder crisis

Pictured at Co-Op Superstores Millstreet, Co Cork are Jim Woulfe, CEO Dairygold, Member farmer Dan Bourke, his son Brandon and Minister for Agriculture, Food and the Marine, Michael Creed TD.

Fodder deliveries en route to Munster from Rosslare Harbour.

Page 2

GLOBAL ECONOMIC AND TRADE TRENDS

GLOBAL PRICING

GLOBAL MILK PRODUCTION

Jan 2018EU milk production increased by 4% in January 2018 compared to January 2017 resulting in the production of 500Mn litres more milk, notably in Germany, France, Italy and Poland.

Feb 2018In January 2018, the US produced 1.8% more milk compared to January 2017. This trend continued in February 2018 with milk production up 1.8% compared to February 2017.

Feb 2018Australian milk collections decreased by 0.5% in February 2018 compared to the same month in 2017.

EU

4.0%

USA

1.8%

Feb 2018New Zealand milk supply decreased by 2.25% in February 2018 compared to the same month in 2017. 1.9Bn litres of milk were collected for processing in the month of February.

Key Message: EU milk collections increased by 4% in January 2018 compared to the same month last year. Increased EU milk supply was translated in more SMP, butter and cheese while a decline in production was reported for WMP. Despite milk price reductions in the Netherlands and elsewhere, milk production continues to increase. New Zealand milk production decreased by 2.25% in February, compared to the same month in 2017. In the US, milk production continues to increase while a sharp decrease in US milk price was reported for January which represents a 26.4% decrease compared to January 2017. Australian milk supply decreased by 0.5% in February 2018 compared to the same month in 2017.

NZ AUS

-2.25% -0.5%

Markets Report

Index

China

Butter Cheese SMP WMPJan 2018 compared to 2017

17k MT 14k MT 46k MT 139k MT+50% +48% +42% +28%

Quantity in k MT % 2017/16

-0.6%

GDT 209

Key Message: Dairy supply and demand: On the demand side, China dairy imports increased notably in volume in January 2018. In January 2018, SMP increased by 42%, WMP by 48% and butter and cheese imports increased by 42% and 28% respectively.

China was the main butter importer in January 2018. Australia and Singapore have shown significant increases in butter imports (+21% and +31%). Japan, China and the US

The latest GDT auction, Event 209, resulted in a marginal decrease in prices with the overall index down 0.6%.

All dairy product prices recorded increases except for anhydrous milk fat and SMP with respective decreases of 7% and 1.8%.

Butter prices increased by 4.1% to $5,494/MT, BMP prices increased by 1% to $1,988/MT.

WMP increased by 1.6%, averaging $3,278/MT and cheddar prices increased by 2.2% to $3,679/MT.

The strongest change in individual products was a 12.1% rise in the casein index, with an average price of $5,668/MT.

(US with 74% EU origin) led the ranking of cheese importers in January 2018.

China stands as the first world SMP and WMP importer, Japan has experienced a remarkable increase in its SMP imports (+142%).

1,500

1,300

1,100

900

700

500

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GDT Auction - Index Movement

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Outlook: While the market for butterfat remains robust and susceptible to upward movement, in general the overall market tone is bearish. This is due to the surplus of milk, and in particular milk protein on the world market, with a combination of intervention stocks in the EU and bumper

output of non-fat dry milk powder in the USA. Additionally, while the global economy has performed well to date in 2018, the recent confrontational overtone between China and the USA on tariffs and heightened tensions with Russia are clouds on the horizon.

Page 3

Milk Supply

Dairygold milk supply for March 2018 was down 4.5% vs March 2017.

The Dairygold monthly milk statement has been updated to show each Fixed Milk Price Scheme separately.Suppliers will see an updated page 3 in this month’s milk statement that will show the following;

Monthly litres supplied associated in various voluntary fixed milk price schemes.

1. Fixed milk price 2 and 3 base prices

2. Total milk kilos for manufacturing/Fixed Milk Price 2/Fixed Milk Price 3

3. A total euro per Kg value for each milk price manufacturing/Fixed Milk Price 2/Fixed Milk Price 3

4. Details of the term associated with each Fixed Milk Price Scheme

5. A new overall total line by month and year-to-date (YTD) litres/€ per Kg/cent per litre (CPL)/value for each

milk price manufacturing/Fixed Milk Price 2/Fixed Milk Price 3.

Milk Supply

Milk Statements

Arrangements for emergency milk issues April - May 2018

Information desk lo-call number for milk related queries is 1890 200 840

MILK ADVISOR ON WEEKEND CALL

5th /6th /7th MayJack Cahill

086 262 8290

28th/29th AprilWilliam Ryan086 246 1633

19th/20th May Maeve O’Connor

086 835 4808

12th/13th MayGer Hennessy086 852 0792

All milk suppliers will by now have received their blank Dairy health certificates for 2019 in the post. Note the following for 2019:

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

2 On page 1 – Veterinary Certification of compliance – the Veterinary Practitioner must complete the number of animals presented to him as milk yielding animals and for which animals he is providing certification.

3 On page 3 – Herdowner Declaration of Compliance – the herdowner must complete the number of animals

presented by him as milk yielding animals to the veterinary practitioner for certification.

As you know, there is a legal requirement to have this certificate completed and signed by your veterinary surgeon.

Suppliers find it convenient to have this certificate completed and signed by their vet at the time of the annual herd test.

When completed and signed, please post to Milk Advisory Department, Dairygold Co-Op, Clonmel Road, Mitchelstown, Co Cork.

NEW Dairy Health Certificates for 2019 milk supply

The first payment of the Dairygold Fixed Milk Price Scheme No.3 will be paid on milk supplied in March 2018.

This will overlap for suppliers who have availed of the Fixed Milk Price Scheme No.2 which runs until December 2019 for milk paid in November 2019.

Fixed Milk Price Scheme No.3

Dairygold on TwitterFollow us on Twitter @DairygoldCo_Op for our latest news and updates.

Page 4

Joint IOSH Ireland farm and farmer safety eventThe Institute of Occupational Safety and Health (IOSH) is holding a free event on the 25th April in the Salesian Agricultural College, Pallaskenry, Co Limerick between 09.45-15.45. The event will seek to improve awareness among the local farming community of the dangers of unsafe practices and demonstrate how a safer farmyard can help prevent accidents and fatalities. The event will feature outdoor practical activities, so please ensure to wear appropriate footwear and clothing.

For more information and to book your place, contact Catherine Daly in the IOSH Ireland Branch office at catherine.daly@iosh.com or freephone 1800 331331.

Dairygold this month announced an operating profit of €32.4 million (2016: €17.5 million) as it published its annual results for 2017. The profit was generated from a turnover of €965.5 million, up 28% on the year prior.

2017 proved a successful year for Dairygold, delivering a robust financial performance and strengthening its balance sheet, while paying leading prices for milk and grain to its Members.

At year end, the net asset value of the business was €335.5 million, while net bank debt was reduced by 10% to €79.6 million, a prudent level given the scale of the organisation and levels of profitability.

Dairygold’s turnover was positively impacted by continued milk production expansion on Milk Suppliers’ farms and strong global dairy markets during the year, despite a slowdown in the last quarter.

Dairygold’s milk production volumes rose to 1.3 billion litres, an increase of 8.3% on the previous year, and represents a cumulative volume increase of 55% since 2009, well ahead of the ambitious targets in the Government’s National Strategic Plan (Harvest 2020).

Dairygold’s strong business growth and performance were reflected in the Co-Op’s continued stream of capital investment throughout the year, which saw a further €13.4 million invested in the business, bringing the total investments over the past five years to €162.1 million.

Milk price increases were primarily driven by butter returns. However, from early Q4 2017, the global market was returning significantly less than the milk price paid to producers, a situation that has continued in Q1 2018.

Despite market fluctuations and weakening returns towards the end of 2017, Dairygold held its milk price to ensure that milk prices did not drop at any time over 2017; a welcome position particularly after the challenging market conditions that prevailed in 2015 and 2016.

In Dairygold’s Agri business, turnover was up year-on-year, driven by increased farmer demand for feed and fertiliser to support

expanding production on-farm.

Regrettably, once more, it was another very challenging year for cereal and grain growers. However, in line with its Co-Operative ethos, Dairygold paid its Suppliers leading prices for their grain during the 2017 harvest.

Looking ahead, the continued uncertainty in relation to Brexit remains a key concern and Dairygold is focused on product diversifications and developing alternative routes to market as part of its risk mitigation and value-added strategies.

Commenting on the 2017 results, Jim Woulfe, CEO Dairygold, said: “I am pleased to report that Dairygold delivered very strong financial results in 2017, buoyed by a robust performance across all its businesses. A solid foundation of dairy investment has delivered increased milk processing capabilities and is enabling sustained business development”.

Dairygold delivers strong business growth and performance

Pictured at the 2017 annual results announcement are Jim Woulfe, CEO Dairygold, Michael Harte, Chief Financial Officer and John O’Gorman, Dairygold Chairman.

Page 5

Dairygold has appointed Ann Fogarty to the position of Group Company Secretary following the retirement of Eamonn Looney who held the position for 16 years.

Ann will be responsible for ensuring the Society meets its statutory and legal obligations under corporate governance best practice. She will ensure all Board activities are conducted seamlessly, implemented effectively and maintain excellent relations with Member shareholders.

Ann will be responsible for providing strategic leadership and direction to a team covering company secretarial executive administration and Member relations as well as legal services, equity management and public relations.

Since joining Dairygold as a business graduate in 1996, Ann has progressed through the organisation and demonstrated strong leadership and capability in a variety of financial roles.

Ann takes up this new position with effect from 1st May from the role of Division Financial Controller of the Dairy Division which she has held for the past eight years.

As a Chartered Certified Accountant (FCCA), Ann holds a Business Degree (UL), Diploma in Corporate Governance (UCD Smurfit Business School) and completed the Dairygold High Performance Leadership (IMI/UCC) and Advanced Leadership Development (UCD Smurfit Business School) programmes in recent years.

She lives near Mitchelstown with her husband and two daughters.

We wish Ann every success in her new role.

• As continued certification is a requirement from the 1st January 2018 all milk Suppliers will need to be mindful of their certification expiry date. Milk suppliers should not leave it any later than 2 months before their current certification expiry date to complete the SDAS audit. • 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 also achieve certification.

• Once a Supplier has had their renewal audit certified they will be given an 18 month period of certification from their previous certification expiry date (and not from the date they completed the audit).

Dairygold appoints new Group Company Secretary

National Sustainable Dairy Assurance Scheme (SDAS)We would like to remind all Suppliers of the requirement that from 1st January 2018, all milk Suppliers must be, and will need to remain SDAS certified. Without SDAS certification milk will not be collected.

Great work has been completed by all our milk Suppliers and milk advisory team in achieving our goal of having all our milk Suppliers fully certified under SDAS.

IMPORTANT REMINDER for Suppliers whose SDAS cert is due to expire in April or May and who have been affected by the adverse weather conditions and fodder crisis.

It may be possible to review your cert expiry period with a view to allowing time to recover time from the extremely harsh weather conditions of spring 2018.

To enquire further about this or any other SDAS related issue please contact your local milk advisor or the Dairygold Milk Advisory Helpdesk on 1890-200-840

!Monthly €50

Voucher Winners

Michael J & Mary Donovan,

Oldtown, Hospital, Co Limerick.

Cornelius Anthony O’Connor,

Farnanes North, Farnanes, Co Cork.

Laurence Hennebry, Kilscanlon, Galbally,

Co Tipperary.Use the Dairygold Postal Payment Envelope or pay by milk or grain offset and you could be a lucky winner!

Ann Fogarty, Dairygold’s new Group Company Secretary.

KEY STEPS TO TAKE WHEN SCHEDULING THE SDAS AUDIT:

Page 6

The contamination of bulk milk tanks with antibiotic residues has serious implications for consumers, producers and processors. The detection of antibiotic residues in milk will result in penalties being incurred.

Most common reasons for antibiotic failures

1. Fresh calvers — Cows treated with dry cow antibiotics calve early and are milked into the tank before the withdrawal period has expired

2. Dried off cows — Cows treated with dry cow tubes mix with the main herd and are milked into the tank

3. Relief milkers — many cases of antibiotic contaminations occur as the relief milker is unaware that a cow has been treated. The cow may not have been identified, the markings were lost, the identification system was not explained clearly or the milker was inattentive

4. Dump bucket — This may occur because the bucket is too small, not emptied between cows or is laid on its side.

Treatment of cows with antibioticsBefore administering antibiotics to a cow, it is essential that you read the details on the label. It is important to make sure that the following are in place:

1. The drug is administered via the recommended route

2. The correct dosage is given at the right frequency

3. The withdrawal period is recorded every time a drug is used.

Do not assume that two similar types of antibiotics have the same withdrawl period.

4. Ensure to extend the withdrawl period when milking once a day.

The withdrawal period stated on the label is only valid when all instructions are followed correctly.

If you are in doubt, ensure milk is tested before it enters the tank.

Preventative measuresAll these failures are preventable if a reliable identification system is in place and good communication exists between herd owner and staff.

The following are some reccommended methods to clearly identify a lactating cow when she is treated with antibiotics. Use a combination of identification methods to ensure a cow is not missed if one method fails.

⊲ Isolate treated cowsWhere possible, isolation of the treated cow is the most effective way to prevent antibiotic contamination. This can be done in several ways:

1. Large herds should run the treated animals as a separate ‘hospital’ herd and milk them after the milk pipe has been removed from the tank

2. Keep the cow with the main herd but draft her out prior to milking and milk her last

3. If the treated cow cannot be isolated and she is milked into a test bucket, the cluster used should be flushed out with clean water before it is applied to the next cow.

⊲ Spray paintBrightly coloured spray paint across the udder and legs of the treated animal provides clear identification. The paint can be washed off or sprayed over with a different colour once the withdrawl\ period has ended. A stop/go method can be effective, with red paint for ‘stop’ and green for ‘go’. Take extra care in times of heavy rain as paint may easily fade.

⊲ Tape on tail/legsA wide band of coloured tape on the tail and legs is also effective identification, particularly when used with the spray paint method.

The tape must be wrapped securely and should be visible during milking and not hidden behind the rump rail.

⊲ Velcro ankle strapsConvenient because they can be quickly and easily attached to the ankle after treatment. A backup is advised as they are prone to come off.

⊲ Use the correct dump bucketEnsure that the bucket is big enough to hold all the milk she will produce at that milking. If two or more cows require the test bucket, empty the bucket between cows.

⊲ Use a Delvo test kitDelvo tests give the farmer peace of mind prior to collection. Milk Advisors provide valid assistance and advise on use. If in doubt, test both the individual cow and the bulk tank. It is imperative that milk is not collected until a negative result has been obtained.

Proactive record keeping and communication is vitalGood records enable you to keep track of what has happened in the herd and are also an important means of communication. A white/black board helps record instructions and cow treatment details where everyone can see them.

If you have treated a cow with antibiotics and someone else will be milking that cow, make sure they know how and why the animal is marked by communicating with them.

Preventing antibiotic contamination of milk

Page 7

No.1+ High Clover Grazing (also available without clover)

High inclusion of astonenergy and meiduno make this mix 48% T. Higher levels of T are being encouraged by Teagasc (due to their palatability and performance on farm) and adapted by others in the industry. Despite not having as high an overall PPI as varieties in mix no. 3, astonenergy is one of the top performers in Teagasc on farm trials. This mix o� ers good seasonal growth, quality and palatability. Due to its slightly slower growth pattern than mix 3, this mixture will be easier managed across the main grazing season.

PPI 2017 = €105. PPI 2018 = €143

No.2. Two Cut Silage (also available with clover)

A mixture designed specifi cally for silage (two or more cuts) with exceptional spring growth for high fi rst cut yields, no clover (questionable role in an intensive cutting system) and durable varieties to ensure a long-lasting sward. Replacing Soloman with Astonconqueror increases spring growth, quality and silage yields. There will be other silage mixes out there with later (30th May) heading dates. With these you will be losing 1st cut silage yield, while increasing your cutting window. These mixes may have a higher PPI than no. 2 but are not true silage mixes and would be better compared to our no.3 mix.

PPI 2017 = €159. PPI 2018 = €192

%T Total PPI Spring Summer Autumn Quality Silage Persistency

48% €143 €30.4 €37 €39 €31 €9 -€3

Goldcrop

Variety Heading Date Pliody PPIKg

Drumbo

Kerry

Astonenergy

Meiduno

Clover

07-Jun

01-Jun

04-Jun

06-Jun

2.75

2.75

3.00

2.00

1.00

LD

LD

LT

LT

€121

€119

€153

€194

6.4

6.1

5.4

5.2

RL GS

%T Total PPI Spring Summer Autumn Quality Silage Persistency

40% €192 €82 €29 €42 €10 €29 €0

Goldcrop

Heading Date Pliody PPIKg RL GS

Astonconquero

Rosetta

Fintona

26-May

24-May

22-May

3.50

3.50

4.50

ID

ID

IT

€180

€174

€215

6.5

6.4

5.5

Variety

No.3. Extend Gold (also available with clover)

Excellent spring and autumn growth combined with exceptional quality for a palatable sward. This mixture is for intensive grazing situations where extending grazing is a priority. Also suitable for one cut silage systems.

PPI 2017 = €149. PPI 2018 = €174

No 4. Heavy Soils (also available without clover)

Heavy soils don’t do this mixture justice. This is an excellent mixture. It has a higher level of diploids to provide a good dense base to the sward with high ground scoring varieties which will ensure a persistent sward in challenging soils. This mixture delivers good seasonal growth and high grass quality. Due to its slightly slower growing pattern than mix 3 this mixture will be easier managed across the main grazing season.

PPI 2017 = €99. PPI 2018 = €125

%T Total PPI Spring Summer Autumn Quality Silage Persistency

41% €174 €29 €1 €43 €53 €16 -€8

Germinal

Heading Date Pliody PPIKg RL GS

AberGain

Aberchoice

Drumbo

05-Jun

09-Jun

07-Jun

4.7

3.4

3.4

LT

LD

LD

€198

€194

€121

5.8

6.3

6.4

Variety

%T Total PPI Spring Summer Autumn Quality Silage Persistency

30% €125 €29 €34 €37 €21 €11 -€6.4

Germinal

Variety Heading Date Pliody PPIKg

Drumbo

Clanrye

Kintyre

Clover

07-Jun

06-Jun

07-Jun

5

3

3

0.5

LD

LD

LT

€121

€97

€156

6.4

6.9

6.0

RL GS

INTRODUCING GOLD ASSURE GRASS SEED MIXTURES 2018(FORMALLY BRANDED DAIRYGOLD)

For advice, contact Shane Cotter Grassland Specialist@ 0870671246 or Buy Now at your local Co-Op Superstores

or through your Area Sales Manager

04. Co-Op Farm Newsletter x2 ads April 2018.indd 2 12/04/2018 11:10

Page 8

WE’VE GOT HEAT DETECTION COVERED

SPRING FARM FENCING SALE

Scratch E Heat Detectors 25’S

0376403-5

€39

Kow Ball Chin Ball Marking Harness

0379835

€195

Flexmark Brush On

Tailpaint 1L0378446-51

€16.95

EACH

Flexmark Tailpaint 500ml

0378440-445

€8.99

EACH

• Available in a variety of colours

Cheetah CUB Strip Grazer Battery Fencer Kit 0768807

• Includes Cheetah fencer, 400M polywire & fence reel & powers up to 1.5Km

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€139

WAS €159

Gallagher M1000 Mains Energiser 0761153

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€80

• Powers up to 100 acres

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€379

WAS €459

Cheetah M60Mains Fencer 0760792

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• Powers up to 200 acres

Gallagher 160Ah Long Life Alkaline Fence Battery 0761237

• Most e� cient 9V battery • Eco friendly • Maintenance free • Longer life expectancy • O� ers up to 30% better performance than saline/air

oxygen batteries

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€10Pigtail Fence Posts - Bundle of 101779111

& powers up to 1.5Km

Fence Posts - Bundle of 10- Bundle of 10 x10

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Elephant Geared Reel 0768820

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NEW!

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Shop Online @ www.coopsuperstores.iefor delivery direct to your farm !"

04. Co-Op Farm Newsletter x2 ads April 2018.indd 1 12/04/2018 11:10