Irish Dairy Industry & Milk Production Systems Pat Moylan, Teagasc, B & T Dairy Adviser, Kilkenny.

Dairy STATS - Ireland Farm holdings 135,300 Average farm size 32.3 ha/79.8 acres Number of milk suppliers 18,000 Total milk supply 5.3 million tonnes 80% is exported 4.1% of EU milk production 36 Co-ops or Plc

EU25 production of milk & milk product The EU has been producing about 145 million tonnes of milk annually. The old EU15 produce 85% of the milk > 90% of milk is for manufacturing

Ireland’s Share

What is done with Irish milk? Other Chocolate Crumb 1% Whole Milk Powder Butter 6 % 6 % Cheese 30 % 57 %

The Irish Agri-food and Drink sector 2010 Irish agri-food and drink exports worth €7.88 bn (Bord Bia 2011). Total dairy exports worth €2.3 billion. 2010 by sector: dairy products and ingredients (29%), prepared consumer foods (18%), beef (19%), live animals (3%), beverages (15%), pig meat and poultry (6%), sheep and sheep meat (2%), seafood (5%) and edible horticulture (3%). Total milk output (incl. imports) amounted to 5,600 million litres. 493 million litres was consumed as liquid milk.

Food Processing – Dairy Exports South America Africa Others North America 5% 7% UK 6% 32% 48% Rest of Europe * 2010 Data

Food Processing - Milk 36 co-ops / PLCs Handle 5.2 m tonnes 4% of EU-25 supply 1.1 m cows 80% exported

Identification & Evaluation of Dairy Breeds

Jerseys

Jersey Small cows - mature weight 400 kgs Colour- light fawn to dark red Conformation lean & dairy like Moderate milk yield (900 gals) High solids (6% B.F. & 4% P) Predominant breed in N.Z. Crossed with Friesian in N.Z. & Irl

Holstein / Friesian

Holstein / Friesian Most common breed in Ireland British Friesian - dual purpose Holstein Friesian - dairy like character Mature cow weight - 600 kgs High milk yield (1000 - 2000 gals) Moderate solids(3.8% B.F. & 3.25% P) Fertility  as milk yield , best response to meals ; 1.1 kg milk : 1 kg meal.

New Zealand Friesian

New Zealand Friesian Smaller hardier cows - mature cows 500 kgs - durable breed. Easy to maintain body condition score Popular in N.Z. - easy to maintain Lower milk & higher solids, less response to feeding ; 0.5 : 1 kg meal Better fertility & longevity Being crossed with Holstein Friesian

Montbeliarde

Montbeliarde Continental red & white breed (France) Similar liveweight to Holstein Friesian. Dual purpose breed Milk production good (11 - 1200 gals) Milk solids good (3.9% B.F., 3.4% P.) Maintain condition score better Cross breeding with Holstein Friesian to improve fertility.

Normande

Normande Continental breed (N.W. France) Dual purpose breed / strong robust Medium frame size (600 - 720 kgs) Colour - spotted brindle or brown Medium milk yield (1000 gals) Good solids (4.4% B.F. & 3.5% P) Feet problems in pure breed recorded.

Norwegian Red

Norwegian Red Scandinavian breed (Norway) Holstein / Ayrshire / Norwegian X Medium height & weight (550 kgs) Colour - all black to red and white Good milk production & solids Selected for fertility, health, calving ease and low somatic cell count. Effective breeding program in place !

Role of Crossbreeding ? Conception rates declining rapidly on commercial dairy farms As milk production  fertility has  Make use of `hybrid vigour` Crossbred cows =  health & fertility &  milk composition + beef merit EBI data available on all Fr. bulls !

Montbeliarde / Friesian X

Normande / Friesian X

Norwegian Red x Friesian

Norwegian Red x Fr (Kildalton)

Breeding Strategy - Guidelines 1. Breed choice depends on farmer preference, beef merit/price, milk price/pricing system, genetic progress of breeds ( E.B.I.) 2. Select sires rather than breeds ? 3. Use E.B.I. to identify best sires 4. Can be as much variation within breeds as between breeds

Milk production systems Manufacturing milk (creamery / summer) 90% of suppliers engaged in creamery milk production < Lactation (300 days approx.) > J F M A M J J A S O N D Dry >< Calving period > < Dry < Breeding season > Most common system, low cost & grass based Target start of calving 1st Feb & end of lactation in late Nov. Target production = 6,000 l / cow @ 3.40% avg. protein @ < 500 kgs meal per cow Easier management system

Milk production systems 2. Liquid milk 10% of suppliers engaged in liquid milk production < Lactation 365 days > J F M A M J J A S O N D <Calving period (60%)> <Calving 40%> < Breeding > < Breeding > Producers must meet liquid contract daily supply conditions 365 day production system – 2 x breeding + calving seasons Target production = 7,000 l / cow @< 1000 kgs meal per cow High degree of management, labour intensive, bonus payments critical for profitability.

Milk production systems 3. Winter milk : production of milk for manufacturing purposes by liquid or manufacturing milk suppliers Supply contracts issued by co-ops < Lactation 365 days > J F M A M J J A S O N D < Calving period > <Calving> Breeding < Breeding season > Must supply set % of quota per month from Oct-March Calving pattern dictated by conditions of winter milk contract Price incentives paid, milk in excess of contract paid for at manufacturing price only Higher labour requirement, schemes reducing in popularity.

Annual Cycle of a Dairy Cow Cow calves down to start lactation period Spring herds : calving 1st Feb – end April Autumn herds : calving Sept - November Early lactation period : Cow on grass / maize silage + concentrates 6-8 kgs per cow per day while indoors.

Annual Cycle Early turnout (1st Feb) to grass in spring reduces labour, slurry, diseases & cost and increases milk yield, milk solids, cow condition & profitability. Typical meal feeding = 4-2 kgs / cow / day Breeding season starts late April for 12-14 weeks for spring calving cows / herds Breeding season : December to February for autumn calving cows / herds A.I. used & stock bull

Annual Cycle Mid season lactation : target to produce 50-60% of quota from grass only from May – end of August. Grass quality & quantity n.b. Late lactation period : cow on grass + 2-3 kgs concentrate depending on quota availability Milk solids rise as volume decreases

Annual Cycle Dry period : dairy cows dried off for 2-3 months & housed full-time – to allow udder rest / prepare cow for calving Fed grass silage ad-lib & dry cow minerals before calving Overall Targets Produce 1 calf per cow every 365 days approx. Compact calving – 90% over 10 week period Long grazing season : 280 grass days (230 days – wet land) Production : 6000 litres @ 3.40% protein (<500 kgs conc.) – spring calving 7000 litres milk @ < 1000 kgs meal / cow – autumn calving

Slatted Housing

Housing & Overground Tanks

Earth Bank Tanks

Out Wintering Pad (Moorepark)

Feeding off Outwintering Pad

Key Steps in Profitable Dairy Farming 1. Good output per cow – milk solids 2. Good fertility – high EBI 3. Grassland management 4. Good Breeding Performance 5. Financial Performance – Output & Costs – Teagasc Dairy Profit Monitor

Teagasc - 2011 Profit Monitor Data Spring Milk   N = 180 Average Top 20% Bottom 20% 2010 2009 GO 36.40 38.21 34.08 31.00 23.75 Co-op price 35.72 36.77 34.30 30.88 23.55 Stocking rate (LU/ha) 2.21 2.29 2.11 2.03 2.10 Herd size (No. Cows) 98 107 85 90 Yield (litres/cow) 5121 5192 5089 5171 4834 Fat % 3.99 4.04 3.89 3.92 3.93 Pr% 3.45 3.49 3.40 3.42 3.41 Yield (kg MS/cow) 392 403 382 391 365 Variable Costs Feed 3.31 2.59 4.43 3.77 3.25 Fert 2.46 2.28 2.65 1.97 1.99 Vet 1.15 0.94 1.26 1.06 1.09 AI 0.58 0.56 0.54 0.57 0.61 Contractor 1.58 1.60 1.68 1.45 OVC 1.71 1.77 1.59 1.56 TVC 10.78 9.56 12.34 10.54 9.96 Gross Margin 25.63 28.65 21.75 20.46 13.79 Fixed Costs Labour 0.92 0.79 0.89 0.76 Machinery 1.40 1.53 1.47 1.28 Car/ESB/Phone 1.27 1.08 1.33 1.25 Depr 2.17 2.24 1.95 1.96 Leases 0.88 0.67 1.24 0.81 0.83 Interest 0.82 0.33 0.73 * OFC 1.78 2.37 2.04 2.72 TFC 9.46 7.70 10.86 9.09 8.96 NM/litre 16.17 20.95 10.89 11.37 4.84 NM/cow € 831 € 1,088 € 560 € 597 € 243

Variable Costs   Feed 3.31 2.59 4.43 3.77 3.25 Fert 2.46 2.28 2.65 1.97 1.99 Vet 1.15 0.94 1.26 1.06 1.09 AI 0.58 0.56 0.54 0.57 0.61 Contractor 1.58 1.60 1.68 1.45 OVC 1.71 1.77 1.59 1.56 TVC 10.78 9.56 12.34 10.54 9.96 Gross Margin 25.63 28.65 21.75 20.46 13.79 Fixed Costs Labour 0.92 0.79 0.89 0.76 Machinery 1.40 1.53 1.47 1.28 Car/ESB/Phone 1.27 1.08 1.33 1.25 Depr 2.17 2.24 1.95 1.96 Leases 0.88 0.67 1.24 0.81 0.83 Interest 0.82 0.33 0.73 * OFC 1.78 2.37 2.04 2.72 TFC 9.46 7.70 10.86 9.09 8.96 NM/litre 16.17 20.95 10.89 11.37 4.84 NM/cow € 831 € 1,088 € 560 € 597 € 243

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