Outlook for dairy products looking up in medium term, says Teagasc
Dairy farmers, like the rest of the economy, face significant difficulties in 2009 – adjusting to the recession, low milk prices and bad weather.
The conferences at the Park Hotel, Mullingar, Co Westmeath (Wednesday) and the Malton Hotel, Killarney (Thursday) will therefore take place against a background of volatile milk prices and low dairy farm incomes.
Teagasc dairy specialist Matt Ryan said with more than 80% of Irish dairy products exported annually, remaining competitive is the major challenge for dairy farmers as they cope with significant swings in milk prices from peak to trough.
Farmer members of discussion groups will address the two conferences and outline the strategies that are working on the farms in their groups, to cope during this difficult year.
Mr Ryan said dairy farmers must develop systems of milk production capable of sustainable returns within a milk price range of 20c-40c per litre. In Ireland, this will be best achieved through the adoption of low-cost grass-based systems of milk production.
Kerry Group managing director Stan McCarthy will give the keynote address at the Killarney conference.
Barbara Kuriger, former board member at the New Zealand dairy processor Fonterra and Louis Kuriger, New Zealand dairy farmer, will speak at both conferences.
Meanwhile, Marian Harkin, MEP, has welcomed a statement by the European Commission that it will not release butter from intervention stocks, a measure which had been requested by the EU Dairy Trade.
“Now that the market for butter has improved significantly it would be unfair if the Commission was to weaken the market by the release of cheaper butter from intervention,” she said.
Ms Harkin said the news that no butter stocks will be released for at least six months is very welcome.
