Urgent strategies required to survive low prices
And in the longer term there is a need to develop low-cost grass-based systems to counteract future volatility in the milk price.
Those were the main messages from the Teagasc dairy open day that about 10,000 farmers attended at Moorepark Dairy Production Research Centre, Fermoy, Co Cork.
Teagasc researcher Dr Padraig French said world market price fluctuation is driven by changes in the overall supply/demand balance and this is set to continue.
He said FAPRI-Ireland, a group of agri economists, indicated that over the next decade, milk price in Ireland is likely to average from between 26c to 28c per litre.
Dr French maintained that the business strategy adopted at farm level in a fluctuating milk price scenario is substantially different to that where milk price is static. This requires dairy farmers to develop low-cost, highly efficient grass-based systems of milk production.
A panel of dairy farmer speakers; Kevin Twomey, Ballyhooly, Co Cork; John Macnamara, Knockainey, Co Limerick; Eddie O’Donnell, Golden, Co Tipperary; Philip Donohoe, Goresbridge, Co Carlow; and Damien McEntee, Carrickmacross, Co Monaghan, addressed a discussion forum.
They accepted that 2009 is a difficult year, but said farmers need to take a longer term view. Proper planning, cost effectiveness and a willingness to change to new systems were key factors. All were positive about the longer term future.
Six key actions to survive this year’s low milk price were identified by the farmers. These include completing a cash-flow budget for the remainder of 2009, balancing expected monthly milk receipts against necessary expense and delaying spending that is not immediately required.
