feed for lactating animals management of dairy industry market and product risks confidential to...

Feed For Lactating AnimalsManagement of Dairy Industry Market and Product Risks

Confidential to Fonterra Co-operative Group

March 2014


Feed Types

• Compound Feeds of domestic and imported origin

• Bulk feeds e.g. PKE, maize and maize silage

• Silage and hay*

• Crop wastes e.g. kiwifruit, onions*

• Novelty feeds*

*nutrient status (protein, ME, nitrogen content – not required)


Feed is a vital link in the value chain

Stock Feed

Animals

Milk

Dairy Processors

International Markets

= $$$ for NZ


Dairy Processor Perspective

• As dairy processors we are focussed on protecting and enhancing market returns.

• As RMP operators we also have a duty ensure our products meet regulatory standards and do not present a risk to human health.

• To achieve these outcomes we need to be confident that the milk we process is fit for purpose.

• We need to continue to build our level of confidence.


Regulatory Requirement

NZCP1: Code of Practice for the Design and Operation of Farm Dairies, has required traceability and fit for purpose declaration since 2006, wording in current code is:

7.8 Purchased Stock Feed

All purchased stock feed should only be received when delivered with documentation identifying:

• • what it contains;

• • source (where it came from); and

• • confirmation that it is suitable for feeding to lactating dairy animals

This documentation should be kept for at least four years.

Any contract signed with a feed provider must allow for consignments to be rejected when they cannot be confirmed as suitable for feeding to lactating dairy animals.


Role of DITAG

• The Dairy Industry Technical Advisory Group includes representatives from all major milk processors.

• We work together in areas of common interest/risk in an effort to develop a consistent response.

• Approach aims to simplify interactions between dairy processors and farmers/associated parties


What are the Issues?

•Consumers, customers and government authorities are very sensitive to food attributes:

–Contaminants (harmful or not)

–GM, religious, cultural requirements

•Farmers are under increasing pressure to sustainably manage farm nutrient inputs.


Management of Contaminants

•Dairy Processors have a wide range of programmes in place to manage risks and provide assurance to customers, for:

–Veterinary products (antibiotics, anthelmentics)

–Cleaning products (detergent/sanitiser residues)

–Environmental sources (water supplies, agrichemicals)

–Fertilisers and waste products (human/industrial waste)

–Feeds (locally grown, blended/imported/compound, other)

But there is currently insufficient traceability in some areas to provide robust assurance of product status with feeds, the impact on milk composition may not be well understood.


Why Feeds?

• These feeds are playing an increasingly important role in the New Zealand dairy industry.

• Higher risk factors

–Product sources not always well defined

–Potential to contain “exotic” contaminants

–Farmer knowledge of risks may be low

• Previous issues (copra, biscuit meal, almond hull)

• Increasing customer enquiry


What are the Risks?

Blended/Imported/Compound feeds can pose a range of risks to milk and milking animals:

• Milk taints due to the presence of natural or artificial flavour components.

• Presence of ruminant protein/animal tissue*

• Biological /chemical residues (for feed and milk products)

• GM status

• Storage creates/exacerbates risk


Managing the Risks

We consider that the identified risk can best be managed through the provision of robust information. This will:

• Confirm offered feed is fit for purpose.

• Ensure farmers are fully aware of any feed related risks and how to manage them.

• Provide an audit trail if problems occur.

• Provide evidence that feed risks are being managed appropriately.

• Provide accurate data for nutrient budgeting & reporting.


Risk Management – Acceptable Limits

Aflatoxins provide and example of the risks to be managed. Responsibility for milk levels sits with the dairy processor. Limits differ depending on country and product type:

• EU infant formula 25 ppt M1

• EU milk 50ppt M1

• US milk 500ppt M1

• Fonterra 25ppt M1 ( 0.025 ug/kg). Alert to farmer level 10ppt

• Recent detects attributed to:

–corn pellets, almond hull, biscuit meal, copra, mouldy feeding conditions


Documentation – Delivery Docket

• Delivery Date

• Feed type

• Quantity

• Carrier

• Manufacturer/Supplier

• Recipient

• Unique identifier/Batch no.

• Best before / Expiry

• Specific conditions for use and storage


Documentation - Declaration

• Validity (Batch, multiple batches, time bound etc.)

• Product status (GM, Ruminant protein, Animal tissue*, Human / Municipal waste)

• Conditions for use (Stock class - young/dry/lactating, Withholding period)

• Storage requirements

• Importer / Manufacturer details

• Traceability status (one up – one down)

• Nutrient status (Protein, ME, Nitrogen content etc.)

• No ruminant Protein is in this feed.


Documentation - Declaration

• It is fit for purpose:

–Residues do not exceeding MRLs in feed or food produced from feed

–Meets Copra code of requirement (reference to Code of Manufacturing

–Creates no adverse impacts on animal health or welfare

–Causes no flavour or functional problems in the food (or carriers appropriate controls)

• Declaration of GM status

• Declaration of Human effluent status

• Declaration of Municipal Waste Status

• No Animal Tissues (as and when required for India)


Questions

feed for lactating animals management of dairy industry market and product risks confidential to...

Documents

fonterra corporate

novelty feeds

major milk processors

new zealand dairy industry

farmersassociated parties

imported origin bulk

feed provider

milk composition