Dairy farmers ‘will have to prioritise resources for on-farm investment’

DAIRY farmers will have to prioritise their resources for on-farm investment to fund the estimated €1bn cost of expanding the dairy sector, according to IFA national dairy committee chairman Kevin Kiersey.

Speaking in light of the views expressed by speakers at the Teagasc National Dairy Conference in Cork, Mr Kiersey said it was clear that farmers would need constructive co-operation from banks to provide expansion-friendly fiscal policies between to 2015 and beyond.

He said: “Irish dairy farmers are enthusiastic about engaging in dairy expansion after 2015, insofar as there are real global market opportunities which can be capitalised on profitably.

“However, while there has been much talk about the investment and working capital requirements of the processing industry, the fact is that by far the greatest investment which will be required to deliver expansion will be on farms. Delivering 50% more milk by 2020 may cost farmers up to €1bn.

“It is, therefore, crucial that the processing industry would respect the need for farmers to prioritise their resources for on-farm investment, and would plan their financial requirements accordingly.”

Meanwhile, IFA President John Bryan said the strong performance of agri-food exports in yesterday’s CSO trade figures for the first eight months of 2011 was further evidence of the contribution the sector is making to recovery.

He said the sector delivered an increase of almost 15% in the value of exports compared to the same period last year. He singled out an impressive dairy performance, with exports rising 32%.