Teagasc Cavan Dairy Conference Hears About the Future of the Milk Industry
Breeding cows for health and fertility, variations in producer prices, the decline in the number of farmers in dairying, planning for a future in dairying and the challenges facing the industry globally were among the issues addressed at two major Teagasc dairy conferences this week.
Winning in Changing Times was the theme of the conferences, the second of which took place at the Slieve Russell Hotel in Co Cavan on Thursday, November 17th, 2005.
Around 500 dairy farmers attended the conference in Cavan, which was addressed by a range of prominent speakers from within the agriculture industry and outside.
Former IFA President, farmer and entrepreneur, Tom Clinton, discussed Investing Inside and Outside the Farm Gate, Ian McCluggage, Head of Dairy and Pigs at Greenmount Agricultural College in Co Antrim reported on the Competitive Dairying Experience in Northern Ireland. Jack Kennedy, dairy specialist with the Irish Farmers Journal addressed the subject of Milk Price for Farm Profit, while Achieving Our Goals was the title of the contribution by Mick O'Dwyer, legendary Kerry footballer and Laois GAA Manager.
Others speakers included Aaron Forde, chief executive, Connacht Gold Co-op, Vincent Gilhawley, chief executive, Town of Monaghan, Teagasc Director, Jim Flanagan, Teagasc dairy expert Brendan Horan and economists Fiona Thorne and Billy Fingleton.
David Colbourne, Dairy Adviser, Teagasc, Cavan, told the conference that few farmers realised that to maintain their current standard of living, household incomes would have to rise by five per cent per annum - or by over 30 per cent by 2011. In dairying, expansion alone would not be enough for most dairy farmers, he said, urging dairy men to analyse their current operations and review the options available to them and their families.
Ian McCluggage, Head of Dairy and Pigs at Greenmount College, said that while the Nitrates Directive will restrict stocking rates in Northern Ireland, new targets set for a phosphorous (P) balance could, in the future, limit the level and type of concentrate fed on dairy farms. "A clear indication from farmers is that without this restriction of concentrate feed levels, the likely scenario was to increase concentrate feeding, allowing for an increase in both milk yield per cow and stocking rate, resulting in a higher milk output per hectare," he said.
Jack Kennedy, Irish Farmers Journal, said the current Irish payment system for milk was a differential-based system with wide variations 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.
