Kerry Group, Teagasc advice worth 3c per litre on monitor dairy farms

PROFIT margins were increased by up to 3.5 c/litre (15.75c per gallon) on eight spring calving farms, between 2002 and 2004.

They were taking part in a special advice programme organised by Kerry Group and Teagasc.

Teagasc advisors and co-op representatives worked with 20 monitor farms and 37 farmer discussion groups over the period, aiming to improve technical efficiency and increase quotas, in order to boost profits on the farms.

Significant improvements were achieved on 11 of the farms, with income increasing by more than €10,000 per farm over a period of two years.

In 2004, almost 150 suppliers who had participated in the programme had achieved profit margins of 16.6 cents/litre, and the common profit per farm had increased by almost €5,000.

At the review of the scheme, Hugh Friel, Managing Director, said Kerry Group remains committed to the scheme, which aims to close the wide gap in profitability between the most efficient and the less efficient producers of milk.

Pat Boyle, Director of Advisory Services, Teagasc said the scheme shows the continuing benefits of advisory contact over a prolonged period.