Farmers need to be businesslike, urges advisor
He said farmers think they are saving €20 per cow by using a stock bull, instead of choosing from the top class breeding available through AI, but the same farmers might be over-spending 100% on feed and fertiliser.
“There is a tremendous future in Ireland if the job is done well. We have some of the best farmers in the world. But it is a fact that you are spending on inputs which you don’t need,” he said.
“It is a fact that only business men can hope to survive in the future and you will have to measure everything. If you don’t know the effect of what you did or did not do, you don’t know where you are going.”
“I met an 80 cow farmer recently who told me that he had a good year in 2005. When the figures were done, his income had gone down by €20,000.”
“Last year, he was told to cut back on purchases of feed and fertiliser. Instead, he used more of both. Farmers will have to learn to say ‘no’ to the sales rep who is out there trying to make a good living and afford a good education for his family,” he said.
Mr Ryan said the full time dairy farmer of the future should be stocked at 1 to 1.25 acres per cow, because heavier stocking is more costly and less profitable.
He or she should be producing 120,000 gallons of milk from a herd of 90 cows, with one labour unit, and outside labour costs of €5,000 to €6,000 per annum, and achieving a net profit of 10 cent per litre, which would give an income of €55,000, plus €13,000 in direct payments.
“If you are unable to target that, you should sit down and examine your options for alternative sources of income,” he said.
