Bright Future for Dairy Farming in Ireland

The Irish dairy industry is entering a period of considerable change. The challenge for Irish dairy farmers to further increase competitiveness was laid down at Moorepark 07, the Teagasc dairy open day which is taking place at Moorepark Research Centre in Fermoy, County Cork, today, Thursday, 21 June. Steps to improve profit and further increase the competitiveness of Irish milk production through innovation, productivity gain and increased scale were outlined by Teagasc research and advisory staff.

Irish milk producers are among the most efficient in Europe and are best placed to take advantage of the abolition of milk quota in Europe. The future for dairy farming is very positive based on the current strong world demand for dairy products and the possibility for expansion. There is large potential on most dairy farms to increase milk production and while the outlook for milk price is good, in future, systems of milk production will have to take cognisance of greater fluctuations in milk price.

Teagasc head of Dairy Production Research, Dr Pat Dillon said: “The factors that will influence the profitability of the herd in the future will include the productivity and quality of grassland pastures on farms, the genetic potential of the herd and the availability of high quality replacements. The relative cost of alternative feeds will also be a significant factor.”

If we enter a new landscape free from quota constraints, new industry targets will be required for high profit dairy farm systems. Dr Dillon said: “The target profitability for well managed dairy farms should be €2,500 per hectare with a margin of €2.00/kg of milk solids produced. Currently, the average net profit per hectare is only €854. A realistic target for labour efficiency should be 22 hours/cow/year which would allow one operator to manage 100 cows. The average labour input on intensive specialised Irish dairy farms is currently around 42 hours per cow.”

The key performance indicators identified by the Teagasc Moorepark research team included achieving high milk solids yield per cow at relatively high stocking rate from grazed grass with minimum concentrate supplementation; having a mean calving date of approximately 15 February with 90% of the herd calved in six weeks and having a high EBI herd. A high EBI herd allows dairy farmers to generate high quality replacements to facilitate herd expansion into the future.

Dr Dillon is also conscious of the other factors motivating the modern dairy farmer. “A successful dairy farm must marry the objectives of profitability, provide for a good lifestyle and allow all participants the opportunity for personal development,” he concluded. The Moorepark open day will assist farmers to prepare for the future by highlighting the importance of adopting modern technology to increase farm profitability.