The Irish Dairy Industry JJ.pdf · •Non Cheddar- Emmental, Jarlsberg, Dubliner, Regatto, Kildery,...

The Irish Dairy Industry Diarmuid (JJ) Sheehan

• Irish Dairy Production

• Irish Dairy Processors

• Changes

• Challenges

• Where does Teagasc Moorepark fit into this ?

ODI conference April 10th 20192

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.)

4

OD

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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)

ODI conference April 10th 2019 5

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

http://www.agriculture.gov.ie/agri-foodindustry/foodharvest2020/

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


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


Infant

Formula


http://www.google.ie/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://hdimagelib.com/abbott+nutrition+logo&ei=CR1bVbqKCoWS7Ab4y4CgBA&bvm=bv.93564037,d.ZGU&psig=AFQjCNG8XbQP-fV2nvO98CZvNfFVQ9pXBA&ust=1432120964724115

http://www.google.ie/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.medicalmanage.gr/wyeth_nutrition.asp&ei=zB1bVerlMubW7Aa13oBg&bvm=bv.93564037,d.ZGU&psig=AFQjCNEygBWDFD1daT9By7X_9JRj8Z3aEQ&ust=1432121159889231

Irish Dairy Processing

17/10/2018 19ODI conference April 10th 2019

Global Ambition ?


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


Associations

Governmental Agencies

Companies


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:

17/10/2018 26ODI conference April 10th 2019

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)

27 ODI conference April 10th 2019

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


http://www.teagasc.ie/

http://www.aspkin.com/wp-content/uploads/2007/07/grazing-cow-1b.jpg

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



31

Complex supply chain:Reflect on results of LCA of dairy products (cradle to

grave)

ConsumerCradle Dairy farm

Packaging & chemicals

Processing Retailer

Energy & water


32

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


33ODI conference April 10th 2019

• 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.

34ODI conference April 10th 2019

But ………


“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”


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

38

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


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


Breakdown of Personnel in the Teagasc

Food Programme, 2017


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


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


‘SMART’ Concept - Nutritional base for

Export


- 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


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



VistaMilk Centre

Cross Cultural Sensory Perception in Ireland, USA & China

In Selected Dairy Products!


Moorepark Technology Limited

• Pilot plant


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


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


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

58 ODI conference April 10th 2019

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


The Irish Dairy Industry Diarmuid (JJ) Sheehan

The Irish Dairy Industry JJ.pdf · •Non Cheddar- Emmental, Jarlsberg, Dubliner, Regatto, Kildery,...

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