Post on 24-May-2020
The Irish Dairy Industry Diarmuid (JJ) Sheehan
• Irish Dairy Production
• Irish Dairy Processors
• Changes
• Challenges
• Where does Teagasc Moorepark fit into this ?
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Presentation Overview
18,322 dairy
farmers
7.5 bn litres
~300 days outdoor grazing
>90% exported
Family Farm Co-Op
Structure
81 cows average herd size
17/10/2018
3
• 7.4 billion litres approx. (2018)
• 17,500 dairy farmers, averaging c 400,000 litres
• Average Constituents. 4.09% fat, 3.51% protein
• 91% of milk produced in spring calving herds
• 85% of total production is exported
• 10 milk processors (Co-op and Co-op/plc)
• 16 milk purchasing Co-operatives
Irish Dairy Production (R.o.I.)
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pril 10th
2019
Grassland Area
Ireland Europe
80% 40%
Ireland’s Natural Advantages
Globally Competitive Dairy Producer
- Lowest Carbon Emissions/litre in Europe (JRC)
- Lowest stress on our Water resources (UN)- Clean, healthy Atlantic air (UN)
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Animal management for grass-based systems
0
20
40
60
80
100
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
kg DM / Hectare dailyDaily pasture growth rate
Daily herd feed requirement
285+ DIM
0
20
40
60
80
100
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
% of cows in the herdSpring Summer Winter
CALVE
CONCEIVE
DRIED-OFF
Alignment of Grass Supply
& Animal Requirements
Compact calving
high fertility status
dairy herd
Seasonality of Milk Supply
Milk Intake by Month
Ireland -v- EU
0%
2%
4%
6%
8%
10%
12%
14%
16%
Jan
Fe
b
Mar
Apr
May
Ju
n Ju
l
Aug
Se
p
Oct
Nov
Dec
Ireland EU
Optimistic Outlook for Irish Dairy Farming
• Milk Quota Abolition in 2015
• Outlook for Milk Price +ve but with greater volatility
• World Demand for Food Increasing
• Dairy Industry Strategically Important to Irish economy.
• Irish grass-based Dairying- Sustainable & Competitive.
• Ample Supply of Young Well Trained Workforce
Vision for agri-food sector
for next decade
Ambitious growth targets
milk volume: + 50%
beef value: + 20%
pigmeat value: + 50%
SMART – GREEN – GROWTHSustainability very important
Consumer and consumer needs are central
http://www.agriculture.gov.ie/agri-foodindustry/foodharvest2020/
TEAGASC – Supporting Innovation in the Irish Bio-Economy
Food Harvest 2020
FH2020 Projections – the farming statsYear Milk
Production
( billion lbs)
Cow Numbers
(million)
Milk
Yield/cow
(lbs)
Fat % Protein%
1984 11.928 1.549 8,384 3.51 3.27
2007/09 10.850 1.005 9,832 3.81 3.33
2014 12.432 1.192 10,428 3.99 3.43
2016 14.470 1.350 11,081 4.09 3.45
2017 15.950 1.400 11,392 4.08 3.50
2020 16.280 1.410 11,510 4.14 3.48
ODI conference April 10th 201910 NZ 39.600 bn lbs
Planned growth post Quota Supply
The Efficiency of Agricultural Production In Ireland
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Dairy Cattle rearing Cattle other Sheep Tillage
€/f
arm
Family Farm Income 2011, 2012, 2013, 2014 & 2015: NFS
2011 2012 2013 2014 2015
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The Sustainable Intensification Challenge?Ruminant production systems face a threefold challenge:
i) to meet the rapidly changing demand
for food within a resource
constrained environment
ii) to do so in an environmentally
and socially sustainable manner
iii) to ensure that the products
produced meet the highest standards
of quality and nutritional value
What is sustainable intensification?
Producing more food per unit resource used,
while minimising the pressure on the environment
Emissions per kg milk produced in different EU
countries
Source: Evaluation of the livestock sector’s contribution to the EU GHG emissions (GGELS) EC, Joint
Research centre, 2010.
LCA method
Important AssumptionThe vast majority of milk produced in Ireland for the
foreseeable will be from Seasonal Pasture-based Systems
Reasons:
1. Ireland has both a comparative and competitive
advantage in pasture-based systems
2. Pasture-based systems have greater sustainability:
– Economic- family farming business
– Social- both internal and external
– Ecological- climate, water, soil, fauna & flora
3. Dairy products from pasture-based systems are of
superior nutritional valve
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Infant
Formula
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Irish Dairy Processing
17/10/2018 19ODI conference April 10th 2019
Global Ambition ?
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Modern Processing Sector• Strong tradition in butter, cheese and
powders
• Dairy Ingredient specialists –supplying infant, sports and clinical nutrition markets
• Global hub for infant formula: 15% of production- Quality of Milk Pool & commitment to Sustainable Dairy
Modern Processing Sector• Major investment programme in new
capacity and value-added dairy ingredient facilities over recent years
• Over €1.5 billion investment over last 5 years in physical facilities to process milk alone
• Strong R&D capabilities and building our innovation base
€25 million investment by Enterprise Ireland & dairy industry
In Food and Health
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Associations
Governmental Agencies
Companies
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Liquid milk 527 m litres
Butter 438 m lbs
SMP 259 m lbs
WMP 57 m lbs
Whey powder 264 m lbs
Casein 102 m lbs
Cheese (mostly cheddar) 451 m lbs
Stats : Products vs Milk Utilisation (Ireland)Production of the main dairy products in 2016:
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Ireland & Cheese – in Numbers▪ Cheese production
• 225,000 tonnes p.a. (2018) (496 million lbs)
• ~ 35 % of milk converted into cheese
▪ Cheese types
• Cheddar 157,500 tonnes exported (2016). (347 million lbs)
• Non Cheddar- Emmental, Jarlsberg, Dubliner, Regatto, Kildery, etc.,
▪ Cheese exports
• ~ 93 % of production
• Cheddar account for ~62 % of total cheese exports
• € 815 million exports total Cheese (2018)
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Irish Cheese Production
0
50
100
150
200
250
300
350
400
450
500
95 96 97 98 99 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Cheese Production (million lbs)
28 260 % increase 1995-2015ODI conference April 10th 2019
Lakelands Bailleborough
Lakelands Dryer 2
Glanbia ‘Ballyragget’ – Butter & Separation
Danone (IMF Dryer)
Kerry ‘Charleville’ Dryer + Canning
Glanbia ‘Belview’ Dryer 1
Glanbia ‘Belview’ Dryer 2
North Cork – Dryer
Abbott (Dryer)
Danone (Packaging Line)
Dairygold 2 x Dryers
IDB – Butter
Carbery – Cheese, Dryer upgrade and
Packaging
Moorepark Technology Limited (MTL)
Milk ‘Processing’! – We are Strategically Committed
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Cheese – back on the Agenda
45,000 tonne Mozzarella plant – JV
45,000 tonne Gouda plant - JV
20,000 tonne Jarlsberg plant - JV
€78m diversification – incl Mozzarella
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31
Complex supply chain:Reflect on results of LCA of dairy products (cradle to
grave)
ConsumerCradle Dairy farm
Packaging & chemicals
Processing Retailer
Energy & water
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Common impact categories used for dairy
products LCAClimate change
Cumulative energy demand
Acidification
Eutrophication
Toxicity
Stress weighted water use
Greenhouse gas emissions
Fossil fuels, minerals
Nutrient discharged
Toxic chemicals
Water scarcity
NH3, NOx, SO2 emissions
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• The dairy product with the highest environmental impact is infant formula.
• However, among all contributors factors - packaging will be the largest contributor to
its environmental impact as a result of the quantity of packaging materials used, while
the majority of the other dairy products are bulk packaged.
• Whey powder has the highest environmental impact for each of the 6 impact
categories
• For each of the dairy products, other than infant formula, energy usage is the most
significant contributor to its environmental impact.
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But ………
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“Ireland is the only significant exporter of
Cheddar to the UK market and the UK market is
the only market of significance for Irish Cheddar”
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Source: Independent.ie April 10 2017
Agriculture Department secretary general Aidan O'Driscoll told
the Public Accounts Committee (PAC) recently that while the
dairy sector is less exposed to the risk of Brexit than other
areas, an exception is the Cheddar industry.
Cheddar ~ € 3000/tonne
Tariff ~ € 1671/tonne
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The Challenge of Brexit – Potential Risks
Currency Risk
Compliance Trade agreements
Food inflation
What is Teagasc?
Teagasc – Pronounced “Chawg-ask” is a Gaelic word meaning
“teachings” or “learnings”
The Irish Agriculture and Food Development Authority
An autonomous state agency
State Advisory/Extension and Education service with a legacy of 100+
years
Agricultural research 50+ years - establishment of The Agricultural
Institute in 1958
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Teagasc Food Research Centre, Moorepark
Moorepark, Animal & Grassland Research and Innovation Centre
Dublin
Cork
Food Chemistry
& Technology
Food
BiosciencesMoorepark
Technology
Limited,
MTL
Industry12 companies
26 people
Teagasc Moorepark Site
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Breakdown of Personnel in the Teagasc
Food Programme, 2017
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Basic Research
Applied Research
Product Development
>5 years 1-5 years <1 year
Market Introduction
Deployment
Results
Time Horizon
Risk&
Capital need
Value creation&
Competitiveness
Open Closed
Lowto
Moderate
High
Commercial
Society
4 Dimensions of RDI in the Food Sector
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Dairy Innovation - Informed by Consumer Insights
- Driven by Science & Technology
- Industry Led
Liquid Milk / Milk powders
Fortified Liquid Milk
Enriched Milk powders
Milk/ Whey concentrates
Milk / Whey Isolates
Bioactive Fractions
Nutritional / Medical beverages
Sports applications
Lifestyle Foods / beverages
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‘SMART’ Concept - Nutritional base for
Export
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- Innovations to Reach other Nations
World-leading expertise in quality / safety, - reassure
new buyers in new markets. Cross-cultural Sensory Studies
Leading Analytical Capabilities
Leading Cheese Scientists Science to underpin quality and consistency
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Teagasc Technology Foresight
identified key transformative
technologies
1. Theme 1: Plant and Animal Genomics
and Related Technologies
2. Theme 2: Human, Animal and Soil
Microbiota
3. Theme 3: Digital Technologies
4. Theme 4: New Technologies for Food
Processing
5. Theme 5: Transformation in the Food
Value Chain System
www.Teagasc.ie
Tegasc Technology Foresight 2035
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VistaMilk Centre
Cross Cultural Sensory Perception in Ireland, USA & China
In Selected Dairy Products!
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Moorepark Technology Limited
• Pilot plant
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Moorepark Technology Limited(10 million Euro upgrade)
◼ Product Prototype Development
• Ingredient qualification
• Processing parameters
• Product performance during processing & drying
• Sample for analyses
• Registration samples
• Pre-commercial manufacture –
• cheese, nutritional powders
and beverages
◼ Scale of Operation• 2 – 20000kg(process dependent)
• 8-24 hours
• Cost effective
◼ Access to Food Research Centre
• Food Imaging Centre
• Analytical capability
• Consultancy /Trouble shooting
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Food Hub Concept
“Allow companies to rent high quality
laboratories and offices to locate their own
R&D teams at Moorepark who will
collaborate with Teagasc researchers and
use the high tech Moorepark Technology
Limited pilot plant.”
- 2360 m2 comprising 1215 m2 client
space
- 14 Client Company spaces
- mix of indigenous and
international food, dairy, and
food for health companies
Food Hub Scope
Process Analytical Technologies (PAT):
✓ Monitor & Control of Dairy Processes
e.g. concentrate behaviour
➢ Quality sensors e.g. temperature
3D Printing Technologies:
✓ Design & Printing of:
➢ Structured Dairy
➢ Food Prototyping
Next Generation Robotics:
✓ application of robotics, PAT & image analysis tools
➢ New quantitative methodologies for powder quality
FC&T Food IT Platform
57
ODI conference April 10th 2019
Food Quality and Sensory Science
1. Virtual reality technology for internal food structure elucidation
• Immersive virtual reality as a research tool to understand the fundamental mechanisms of component
interactions within food matrices, linking with instrumental texture and sensory science (links with all food
programme departments)
2. Virtual and augmented reality technology to promote healthier food choices
• Application of virtual reality as a digital tool for promoting healthier food choices, understanding whether
consumer preference and liking of foods is influenced by an immersive VR context
• Understand how novel immersive and situational augmented reality technology can be used to assess
consumer behaviour
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Some thoughts
▪ Dairy Industry is dynamic
▪ Further rationalisation will happen
▪ Need to get to global scale (?)
▪ Game changers- Political ? Asia & Africa?, tech ?
▪ Hardware & Software
▪ People
ODI conference April 10th 201959
The Irish Dairy Industry Diarmuid (JJ) Sheehan