To compete with the best, Ireland needs to milk the tools that are available

FARMERS who are borrowing to expand their herds or processors who are borrowing to build a new drier costing millions will be asked probing questions by their bankers regarding the certainty of their future incomes, and their capacity to pay back their borrowings.

Bankers will be worried about the wide fluctuations since 2007 in milk prices paid to Irish farmers, with peaks in 2007 and 2011, but a severe slump in 2009.

Milk prices had been stable for 10 years, but that changed in the past decade, and there has been increased volatility in prices of fertiliser and dairy rations, too.