Age profile at Teagasc conference indicates opportunities in sector

THE youthful age profile of the record 8,000 visitors to yesterday’s Teagasc Moorepark 2011 conference in Fermoy, Co Cork, was a clear signal of the expansion ambitions and opportunities in the dairy sector.

Seasoned observers noted that yesterday’s was the most youthful attendance in years at the research open day, an event which Teagasc hosts every two years to update dairy farmers on the latest grass management, breeding methods and other technical advances to improve on-farm efficiency.

A new feature this year was the increased interest in environmental exhibitions, with carbon footprint management sure to play an increasingly important role in all future dealings with the European Union.

Teagasc Head of Animal and Grassland Research and Innovation, Dr Pat Dillon, said Irish dairy farming is entering a period of considerable opportunity as the abolition of milk quotas in the EU will allow dairy farming businesses to expand for the first time in 25 years.

The export-oriented dairy sector has the potential to contribute significantly to Irish economic recovery in the coming years.

Dr Dillon said: “Irish dairy farmers are well respected internationally for their low cost efficient milk production systems and ability to rapidly adopt new technologies to sustain that competitive advantage. Any expansion in the dairy farm business should only be undertaken if it increases profitability and provides a better lifestyle to the farm family.

“In this environment, only those dairy farmers who fully capitalise on the inherent competitive advantages associated with low cost grass-based seasonal milk production systems will be successful.”

Dr Dillon believes that the challenge now for Irish dairy farmers is to increase the competitiveness of their farming business through the adoption of modern technology in relation to compact calving, higher stocking rates, high EBI replacements, high quality pasture management and low cost labour efficient farm infrastructures.

The purpose of the open day was to prepare dairy farmers for the future by highlighting new research technologies and describing how these can be incorporated into the Irish production system to increase overall industry efficiency.

The 2010 results show that, from a similar overall scale, the top 10% of dairy farmers increased farm profitability by €16,000 after full labour costs were deducted by producing more milk of higher composition with lower concentrate, fertiliser and machinery costs.

Meanwhile, Teagasc researcher Dr Laurence Shalloo said that 44% of the variation in net profit per hectare between dairy farms can be explained by the quantity of grass utilised per hectare.

Dr Shalloo said: “As Irish farmers focus on technologies to increase grass utilised, we can expect to see a reduction in unit production costs and increased output on dairy farms. Increasing the quantity of grass utilised on farm by 1 tonne of Dry Matter (DM) per hectare will increase net profit per hectare by €100.”

Teagasc and partners Ulster Bank launched a “Grass Calculator” to help farmers to increase grass utilised on Irish dairy farms. This new grass management tool will give farmers an estimate of the quantity of grass utilised annually on their farm.