Business Skills a Vital Technology for Dairy Farmers
Issued 22ndNovember 2001
Speaking at the Teagasc National Dairy Conference in Killarney, Dr Denis Brosnan, Managing Director, Kerry Group plc, predicted that EU milk quotas will remain in place as dairy farming in the EU cannot survive without them. Dr Brosnan's analysis of world dairy markets has led him to conclude that if the Irish dairy industry is to survive the challenges from expanding world dairy production and concentrated market forces, we must;
- · Merge our dairy processing and marketing activities and get the benefits of scale, size and market knowledge.
- · Expand beyond milk and become a broad-based food organisation.
He contrasted the loose alliance that exists between Irish co-ops and their central marketing organisation with that of New Zealand's dominant co-op, Fonterra which buys and markets 96% of New Zealand milk.
Mr Dermot McCarthy, Chief Dairy Advisor Teagasc told the 1200 people attending the National Dairy Conference that business analysis skills are the key to survival for dairy farmers in an era of static prices. ''The home computer is set to join the fertiliser spreader and the grass topper as essential farm equipment'', he said.
''With this in mind, Teagasc is refocusing its resources to place business skills on a par with farming technology. The lack of management information, even on technically well run farms, leads to poor decision making. This deficit is being tackled through investment in internet-based computer programmes for monitoring farm performance, analysing farm accounts and controlling costs. Computer and financial management training courses will be provided to support this development. These initiatives will bring essential management information into the farmhouse'', said Mr McCarthy.
Through the joint Teagasc / Kerry Agribusiness programme, fourteen monitor farmers are already operating the Teagasc business and financial packages on their farms.
Cow Condition
Cow condition score has a major influence on production and fertility, according to Dr Frank Buckley, Teagasc, Moorepark. Recent Moorepark research showed that cows calving at condition score 2.88 produced almost one gallon more milk per day than cows calving at condition score 2.6 over the first 8 weeks of lactation. Higher condition score cows also had up to 16% higher conception rates.
''Ideally cows should be dried off at condition score 2.75 or over and calve down at condition score 3.25 to 3.5. Dairy farmers must change practices and meat target condition scores set to improve performance and maximise profitability'', concluded Dr Buckley.
According to the Director of GlobalCo and Dexcel, New Zealand, Marise James, the trend towards larger farm units had seen a major change in the labour requirements on farms. The traditional family farm where the only labour was provided "voluntarily" by the family unit is slowly changing. More and more farms are employing both full-time and part-time staff. Also, farmers are realising that they will not attract good labour if they cannot compete by offering good terms of employment.
