Irish dairy competitors face challenge

Ireland’s competitors bidding for their share of the world dairy market have their own cost problems inside the farm gate.

A survey of dairy farming costs by Rabobank, the leading global agri-bank, shows Ireland had the second lowest 2012 milk production cost of six major production areas.

The survey warns that New Zealand and Australian farm-ers will have to find new ways to survive milk price slumps — because their previous advantage of low costs inside the farm gate, which tided them over in the past, isn’t there any more. Suggested new survival strategies include better supply chain efficiency beyond the farm gate.