Material flows in livestock product utilisation

Category 1

Reasons for milk being classified as a Category 1 ABP are:

1. 
   When milk and milk products are derived from animals to which substances prohibited under Directive 96/22/EEC have been administered (e.g. thyrostatic substances, beta-agonists)
   
2. 
   When milk and milk products contain residues of environmental contaminants and other substances listed in Group B3 of Annex 1 of 96/23/EC (e.g. organochlorine compounds, dyes).
   

It has already been outlined that Category 1 waste occurrence is rare. Reason a) for waste occurrence is unlikely due to the substances enlisted being prohibited throughout the UK and the EU. Through our contacts made during the course of the study it was indicated that, Category 1 waste by reason b) has occurred within the last five years. However it requires substantial human error for this waste to occur. Volumes of the waste would increase if Category 1 milk contaminated other milk.

Current Disposal - As a Category 1 ABP, milk waste resulting from either of the above reasons must be disposed of by incineration or in an approved Category 1 rendering plant. Each of these disposal routes incurs a cost (£35/tonne suggested for incineration).

Category 2

Milk and milk products become Category 2 when:

1. 
   When milk and milk products contain residues of veterinary drugs listed in group b(1) and (2) of Annex 1 to Directive 96/23/EC (e.g. antibacterial substances) and residue levels exceed those set in community legislation
   
2. 
   When milk and milk products are derived from animals showing clinical signs of disease communicable to humans and animals via milk (TB, Brucellosis).
   

Raw milk contaminated with veterinary drugs is common on-farm, but this on-farm waste/by-product is not included within the ABPR. A significant, but immeasurable volume of this occurs each year.

Category 2 raw milk, (by reason a)) occurs sporadically for the processor. It is caused by cows treated with veterinary drugs commencing/continuing lactation prior to completion of the drug’s withdrawal period. The most common sources of antibiotics are from dry-cow therapy, and in the treatment of mastitis. The majority of this milk is kept separate from the milk collected by processors, and is utilised as a calf feed, or fed through the farm slurry system and used as a fertiliser.
Through human error milk contaminated with veterinary drugs may enter the tank of milk to be collected by the processor (bulk tank). It is when this milk is collected, and mixed with uncontaminated raw milk that significant volumes of this waste occurs. Whilst the processor disposes of this waste, it is at a cost to the producer.
The occurrence of Category 2 milk by reason b) is directly related to herd health status. The FSA states that milk for human consumption must come from animals that are in good health, and that milk from animals deemed to show a positive reaction to Bovine Tuberculosis (bTB) or Brucellosis tests must not be used for human consumption. Milk from animals suffering from other diseases (e.g. Foot and Mouth) can still be used for human consumption, provided it is processed. However the milk must still meet specifications in place from the processor. Cattle suffering from particular diseases would be culled, and as such cause a waste not only in terms of milk waste, but also in terms of dead stock.
The most common reason for Category 2 waste is mastitis. Mastitis is the predominant reason for antibiotic treatment of cows (and therefore contamination of milk), cows are classified as being of poor health, and may cause for milk to be out of specification. Whilst the volume of Category 2 waste is minimal, there is a significant volume of on-farm waste that is generated that meets the criteria of Category 2 milk and milk products.
Current disposal - Category two milk and milk products must be disposed of through the following means:

• 
  Disposed of by incineration or treated in an approved Category 1 or 2 rendering plant
  

In the case of milk and colostrums it may also be:

• 
  Treated in an compost or biogas plant approved under the ABPR and licensed in accordance with WMLR
  
• 
  Used as a fertiliser and soil improver (in accordance with Regulation 181/2006 and WMLR)
  

The processor historically always disposed of Category 2 milk by incineration or rendering. More recently, our contacts have moved toward disposing milk in biogas plants, primarily Anaerobic Digestion plants. Disposal via this route is at a similar cost to incineration (£35/tonne).

Little is thought to be composted or applied directly to land (i.e. not through anaerobic digestion), as the production of category 2 milk is often sporadic.

Milk and milk products become Category 3 when:

1. 
   They are former foodstuffs fit for human consumption but no longer intended for that purpose;
   
2. 
   They are derived from the production of products intended for human consumption
   
3. 
   In the case of raw milk they originate from animals that do not show clinical signs of any disease communicable to humans or animals through the milk
   

a) and b) are concerned with the processed milk or milk product. c) is concerned with the unprocessed, raw milk product. Milk with blood, taint or extraneous water,(assuming these come from animals which do not show clinical signs of any disease communicable through that product to humans or animals) are examples coming into category 3.

Table 2.4.2 outlined the levels of Cause a) - The main source of milk and milk products fit for human consumption, but no longer intended for it, is retailer returns. Retailer returns occur because of the following:

• 
  Faulty packaging
  
• 
  Mislabelling
  
• 
  Short shelf life
  
• 
  Over-ordering
  
• 
  Milk separation
  

Retailer returns due to milk holding a short shelf life, and over-ordering (by the retailer) are the most significant in terms of volumes. This may be a problem caused by the retailer, but is dealt by the processor.

Cause b) – This type of milk by-product occurs as a result of the physical processing of raw milk into a product. Section 3.4.1.2 considered why these by-products occur, and the variation of by-products between products produced.

One thing is common between all by-products of milk processing (regardless of the product produced):

If the by-product is not intended for human consumption it is ‘down-graded’ and classified as Category 3. Few by-products of milk processing, e.g. fat skims, sludges, are actually used for human consumption; therefore the majority of by-products are classified as Category 3. However, some by-products such as whey do have a use for human consumption (it may be concentrated for use as a food extender or additive) but is commonly ‘downgraded’ and fed to pigs as a Category 3 ABP.
In the case of raw milk they originate from animals that do not show clinical signs of any disease communicable to humans or animals through the milk
Raw milk, that is not classified as a Category 1 or 2 ABP, but is unsuitable for human consumption or is not intended for it, would be classified as a Category 3 ABP. The key reason for this type of milk is that if it does not meet the specifications set by the processor (e.g. tainted milk), or those requirements set by the Food Hygiene Regulations, in terms of temperature. Section 3.4.1.3 considered the processor specifications that commonly result in the production of milk unsuitable for human consumption.
As with milk generated from cause a), the ABPR place restrictions upon how this milk can be disposed of.

Current disposal – Category 3 milk and milk product must be disposed of according to the ABPR, in the following ways:

• 
  Disposed of by incineration or treated in an approved Category 1 or 2 rendering plant
  
• 
  Treated in an compost or biogas plant approved under the ABPR and licensed in accordance with WMLR
  
• 
  Used as a fertiliser and soil improver (in accordance with Regulation 181/2006 and WMLR)
  
• 
  In the case of milk and colostrums applied to land in accordance with article 5.2 (e) under the ABPR and the WMLR
  
• 
  Treated in accordance with Regulation 79/2005 to be used in animal feed (when milk or milk products are sourced from premises approved under FHL)
  

Up until 1^st October 2007 a large proportion of Category 3 milk caused by retailer returns was disposed of to landfill. This represented a waste in terms of economical and environmental cost. Through our contacts we have established that the following are key disposal routes as of 1^st October 2007:

• 
  Animal feed: Pigs – primarily wastes generated through processing, and supermarket returns. The milk is used, and packaging recycled at little cost. This is considered as a waste in this report because the processing costs may exceed its value
  
• 
  Treated in on-site, effluent treatment plants – wastes generated through milk processing (wash water). This disposal route will reduce the cost of disposal. The water collected is useable for vehicle washing
  
• 
  Anaerobic Digestion – All forms of category 3 milk and milk products. Explained under Category 2
  
• 
  Rendered and incinerated – Primarily milk waste caused by a). Some issues regarding the acceptation of raw milk.
  

3.4.1.2. Milk waste as a result of process
The processing of milk generates products both suitable and unsuitable for human consumption. These products vary depending upon the edible product processed. Liquid milk represents roughly 51% of the milk usage in the UK and due to the availability of data; the waste produced from liquid milk processing was focussed upon.

Note - Cheese making is recognised as being less efficient than liquid milk processing in terms of volumes of product used and wasted. The types and reasons for these wastes/by-products generated were not considered in great detail (see section below), as reliable data could not be obtained.

Liquid milk processing - There are multiple phases of processing raw milk to produce liquid milk, many of which generate some form of by-product. The following are the phases of the process that produce the particular by-products outlined in table 2.4.2:

• 
  Clarification/centrifugation – removes impurities from milk– sludge, retentate, desludges (from bactofuge/clarifiers)
  
• 
  Separation – of skim milk and cream – sludge, fat skims
  
• 
  Cleaning in practice – milk washings, wash-down water contaminated with milk
  
• 
  Effluent treatment – of milk washings – sludges
  

Of the wastes produced from these processes, it is not common practice for any of these to be used for human consumption. Sludges and desludges are unsuitable for human consumption because of their nature, e.g. sludges and desludges are typically high in bacteria, or may contain foreign material (straw etc).

These are all disposed of by the means outlined in section 3.4.1 according to the ABPR. Some plants currently reuse the water element of milk washings, (once cleaned – in effluent treatment plant) as a vehicle wash. This concentrates the waste – i.e. the sludge, and therefore reduces the volume for disposal.

Note - This water cannot be used elsewhere in the process because of legislation.

Cheese and dairy product manufacture

48% of milk utilised by dairies is for the manufacture of the following key dairy products:

Butter, Cheese, Full cream powder, Skimmed milk powder, Condensed milk, Cream, Yoghurt
Of these products, cheese manufacture utilises 60% of the raw incoming milk. Cheese making generates a significant volume of whey (90% of the volume of the raw milk input). This has a use for human consumption, and may be powdered for this. Alternatively it is ‘downgraded’ to a Category 3 ABP and fed to pigs. It is not a waste, unless it is disposed of in a way that costs the processor or environment.

3.4.1.3. Milk waste as a result of specification
Individual processing companies set specifications that ensure that raw milk meets the standards as set by the FHR, and The Dairy Products (Hygiene) Regulations 1995. These specifications ensure that defective raw milk that cannot be improved through processing is rejected. The specifications that result in significant volumes are as follows:

• 
  Residues such as antibiotics and pesticides must not exceed levels specified in legislation – antibiotics used to treated infections or ailments. Pesticides from feed.
  
• 
  Extraneous water must not be added to raw milk
  
• 
  A bacterial standard of  100,000 per ml for all milk intended for human consumption – due to poor milking methods, inadequate cleaning of milk equipment and poor cooling (and mastitis in some cases).
  
• 
  A Somatic Cell Count standard of 400,000 per ml for all milk intended for human consumption – caused by a bacterial infection of the udder (primarily mastitis)
  
• 
  Milk must be of normal appearance, smell and taste – including taints that may arise due to feed type.
  

This milk must be disposed of according to the ABPR, with all but antibiotic milk treated as a Category 3 milk product. Our contacts suggested that they have moved toward biogas plants for the disposal of this waste raw milk, as few plants; incinerators etc, are willing to accept un-processed, raw milk.

3.4.2. PACKAGING
Section 2.4.2.1 outlined the following as the predominant types of packaging waste expected to be incurred/generated through milk processing:

• 
  HDP (High Density Polythene) bottles
  
• 
  Tetra-pack cartons
  
• 
  Chemical drums/containers
  
• 
  Shrink-wrap
  
• 
  Cardboard
  
• 
  Pallets
  

The reasons for these wastes are:

• 
  As a result of incoming-product, i.e. chemical containers
  
• 
  As a result of faulty packaging, machine malfunction, human error
  
• 
  As a result of returns from customers (generally as a result of date)
  
• 
  As a result in packaging changes
  
• 
  Plastic from labels
  
• 
  Film
  
• 
  Dirty plastic
  

The largest proportion of milk packaging occurs as a waste in the consumers home. High packaging costs have already led to major reductions and the waste is recycled whenever possible – currently 11,000 tonnes is recycled.

The largest source of packaging waste is that of cartons/bottles etc the customer has returned that. Generally it is not the dairy processor that deals with this waste, but is dealt by the renderer/incinerator/anaerobic digester. These outlets for this type of waste generally have to deal with a large volume of packaging waste, and wash and recycle the majority of it.
Faulty packaging from customer returns may still be within date so the milk can be recycled, for cheese making or pig feed.
The types of waste has been reduced significantly, for example as a result of the move away from using pallets there is no longer any need to shrink wrap thus saving miles of wrapping.
The amount of bottle waste can be reduced by making them and recycling them onsite as most damage to empty bottles occurs during transit.
The future is to reduce weight of packaging – thus saving in raw materials but at the cost of thinner more easily damaged bottles. This process has already reduced the bottle weight by 3.5%.

3.4.3. DEADSTOCK

Milk production also results in the production of bovine animals that have a low or negative economic value, and may not be used for human consumption. These incur both an economic cost to the producer and a loss to the beef industry of potential meat animals.
Section 2.4.2.1 considered that calves (primarily those less than 36 hours of age) were the key dairy dead stock waste in 2006.
With OTM cattle eligible to enter the food chain, un-productive females are no longer a true waste, as they do generate a return. However, it is well recognised that by improving the longevity and fertility of dairy females (conception rates considered to have declined to levels now less than 40% (Sinclair & Webb, 2005)), the dairy industry could be considerably more efficient in terms of the number of females needed to produce a similar volume of raw milk.
3.4.3.1. Calves
To enable lactation to commence, the cow/heifer must produce a calf. Calf production alone results in unavoidable mortalities, resulting in a waste that has a negative economic value; i.e. the cost of conception (bull hire/artificial insemination (AI) costs on average £27/cow, Nix, 2007) and then collection and disposal of calves generally incurs a cost (£10 as quoted from a registered fallen stock collector).
Unavoidable mortalities between birth and rearing represent an insignificant proportion of calve losses when considering that an estimated 100,000 dairy-type bull calves were disposed of in 2006 (MDC Breeding+, 2006; See Annex 6.10 for how this has been calculated).
The value and demand for a calf depends entirely upon its sex, breeding and market. With low market demand and returns, dairy-type bull calves may be uneconomical to rear. In many cases it is more economical for a producer to dispose of a calf at birth, incurring a minimum of an estimated £37 costs, than it is to rear the calf for sale.
With the re-opening of live calf exports (May 2006), the value of dairy-bred bull calves increased – auction market value increased from £15.35 to £25.85 between March and May (MLC). In 2006 it is expected that fewer calves were disposed of at birth than in previous years.
With the prospect of EU wide shortages of beef in the next few years, there are now moves by sectors of the industry to re-establish the use of dairy-bred bull calves as the raw material for specialist beef units that would finish the calves to a commercial beef weight. Unless there is a major change in consumer preferences the use of calves in veal production is unlikely.
Current disposal – Dead calves are commonly collected and disposed of via incineration or via the knackers yard or hunt kennels. Calves (as with other fallen stock) may also be disposed of by rendering.

3.5. EGGS

The wastes that occur through egg production were outlined in section 3.2. This section considers the reasons for these wastes, and the current methods by which these are disposed of.

3.5.1. HATCHERY WASTE

Approximately 50% of chicks produced are male and these are of no use to the egg business, and because they are produced from an egg laying strain of bird they are not acceptable as meat birds. The male chicks are disposed of on farm and specialist companies with hatcheries in an attempt to reduce the disposal cost. For example Honeybrook Animal Foods work with some of the larger hatcheries to provide the gas slaughter equipment and market the chicks to zoos and specialist reptile breeders. Obviously this is a very small limited market but it has proved successful.

With the current restrictions on recycling protein it is unlikely that any of the hatchery waste will be used as feed. One possible use is to convert it into a fuel but the initial equipment cost is seen as prohibitive.

3.5.2. EGG QUALITY
The best quality egg is Grade A and these are sold as “shell eggs”. They must be clean, without cracks and have an air sack not exceeding 6mm in depth. Washing eggs is prohibited in the by legislation unless they are destined for use in egg products.
Any eggs not meeting this standard become Grade B and are broken, pasteurised and sold on the liquid egg market. Any cracks also increase the risk of bacterial contamination of the broken egg and of other eggs when leaking, creating food safety problems.
Any eggs not fit for human consumption but not condemned due to disease are classed as “industrial eggs” and are sold for alternative uses such as shampoo and soap. The following table gives the reasons and the proportion of eggs downgraded from Grade A.
Table 3.5.2: The reasons for downgrading eggs from Grade A

61 %	pressure cracks
13.6 %	pimpled
9.81 %	thin shell cracks
6.8 %	body checks
5.1 %	toe holes
2.13 %	stained shell
0.85 %	blood spots
0.85 %	meat spots