Teagasc Waterford Dairy Conference Discusses the Future of Dairying in Ireland
Breeding cows for health and fertility, variations in prices paid to producers and the challenges facing the industry globally were among the issues addressed at a major Teagasc dairy conference in Waterford today (Wednesday, November 16th, 2005).
Winning in Changing Times was the theme of the conference, which took place at the McEniff Ard Rí Hotel in Waterford, and which was attended by almost 700 farmers.
Former Secretary of the Department of Agriculture and Food, John Malone, discussed the Options for Dairy Processing in Ireland, while Brody Sweeney, Group Managing Director, O'Brien Sandwich Bars, addressed the subject of Creating a Winning Environment.
Other speakers included Dr Arnold Harbers of CR Delta in The Netherlands, Jack Kennedy, dairy specialist with the Irish Farmers Journal, Teagasc Director, Jim Flanagan and Teagasc specialists including Dr Seamus Crosse, Director of Agricultural Research, Tom O'Dwyer and Dr Seamus Kearney, Teagasc dairy specialists.
"Farmers are looking for trouble-free cows. These cows should be able to look after themselves and still produce good lactation yields with acceptable calving intervals," Dr Arnold Harbers told delegates to the conference.
The drive for greater yield in The Netherlands has, in the last 50 years, doubled yields, fat percentage has increased by 0.55 per cent and protein by 0.15 per cent, but at the cost in many cases of mastitis, lameness, poor conception rates, low somatic cell counts, metabolic disorders, calving problems, stillbirth and other problems.
"In the future, health and fertility traits will become even more important. The two main reasons for that are political regulations - animal welfare, environmental legislation, general food law - and food chain issues ultimately resulting in consumer confidence in dairy products," he said.
John Malone, former secretary general of the Department of Agriculture and Food, and Mike Magan, chairman of Lakeland Dairies, discussed the issues relating to the marketing of dairy products - matching the power of the multiples and Teagasc tailoring its services to the specific requirements of individual processors.
Challenges that could be considered would include "being best at butter" and "do more cheeses", but one of their conclusions was that we should reduce our dependence on butter.
Other recommendations were that we should consolidate processing of base products, involve the Irish Dairy Board in processing, as well as giving it a centralised, and clarified, marketing role.
Dr Seamus Kearney, Dairy Adviser, Teagasc, Dungarvan, Co Waterford, reported that the number of dairy farmers had dropped from 86,300 in 1983, the year milk quotas were introduced, to 23,767 in 2004. Currently, roughly 1,400 dairy farmers - or four every day - are exiting the industry each year, for a variety of reasons. "For those who want to stay in milk production over the next 10 years, it will take a more detailed planning process to meet the next goal. The two main reasons are the Single Farm Payment (SFP) and pressure on farm incomes. The SFP gives dairy farmers the opportunity to re-examine and change their farming systems for improved profit and enhanced lifestyle," he said.
Options outlined include restructuring or purchasing milk quota, partnerships - with a family member or other dairy farmers – share milking, organic farming, once-a-day milking or an off-farm job.
Jack Kennedy of the Irish Farmers Journal said the current Irish payment system for milk was a differential-based system with wide variation between co-ops. There is also a wide variation on the value of fat and protein between co-ops. There is no volume-based penalty. The payment system sends a wrong signal to the producer in relation to milk quality and attributes. There is cross-subsidisation between producers as the payment for better protein and fat with less water is not reflected in the price the farmer receives. There is an urgent need to make payment schemes more related to market returns.
In Denmark, the Dairy Board provides a guideline based on market information and there is no variation in fat and protein values. The current system in New Zealand rewards producers on the basis of fat and protein, less a volume-based penalty. This sends price signals to the producer in relation to milk quality attributes.
