Dairygold asks suppliers for milk volume forecasts

Dairygold Co-op milk suppliers are being asked to provide a rolling four-year forecast of their milk volumes, commencing next Marsh.

The co-op needs a method to forecast the milk volumes that it will receive with a good degree of certainty.

Suppliers will have a provision for annual adjustments, and Dairygold will assist them in getting forecasting right, starting with a series of meetings and information initiatives during the autumn and early in 2013.

The aim is to ensure that milk volume forecasting and co-op funding requirements are fully and widely understood by members.

Dairygold Co-op has committed to accept all the milk that its members supply after EU quotas are scrapped in 2015. In surveys, Dairygold milk suppliers have themselves forecast a 63.5% increase in milk production from 941m litres in 2011 to 1,539m litres by 2020.

To facilitate that expected increase, Dairygold has agreed a planned and phased investment of €120m to incrementally expand its weekly processing capacity by 18.5m litres, by 2020.

In addition to “sweating” existing processing sites, Dairygold is already investing to increase its weekly processing capacity by 4.3m litres (15%) by 2014 (at its powder facility in Mitchelstown, speciality cheese plant at Mogeely, and its cheddar and whey plantsin Mitchelstown). Once plant upgrades in Mitchelstown have been completed, Dairygold sees milk-drying on its Mallow site offering the flexibility its expansion programme requires.

Capacity can be built up there gradually.

Dairygold plans to invest €120m to add an additional 18.5 million litres of weekly capacity up to 2020. This will comprise of an upgrade of an existing drying and evaporation facility in Mitchelstown, and two new 7.5 tonne/hour dryers in Mallow, one planned for 2015 and the second for 2019.

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