Tough decisions will protect dairy industry

The Teagasc Moorepark open day reinforces the importance and value of independent farmer-focused research. We should not overlook the role Moorepark has played in positioning dairy farmers to take full advantage of the abolition of quota. According to Teagasc, the growth opportunity has seen net profit on dairy farms doubled. At the same time, the level of debt, on a milk solids basis, has fallen almost 50%.

An unrelenting research focus on developing an efficient grass-based production model has served farmers well. However, as in every sector, technical advice is not prescriptive and there are plenty of farmers running profitable high-input systems. In most cases, these farmers rely heavily on the basic principles of the Moorepark model – maximise grass growth and utilisation alongside a fertile and functional herd of cows.

Even for those following the grass-based route there is clearly still a long road to go in improving technical efficiency. The Teagasc figures show a spread of €2,000 in the net profit being generated between the top and average-performing farms. The ability to maintain a high stocking rate by achieving high levels of grass growth and utilisation is what unites the top-performing farms.

There is undoubtedly potential to grow the sector. However, there is a danger of evolving into higher-input systems, where the focus moves from being totally aligned to farm profit in the direction of driving output to dilute higher fixed costs. The message was simple – every farm has a production or output limit which is determined by the ability to grow and utilise grass.

However, with just 20% of our land area under dairying, there is further scope for conversion. Such a move will obviously be challenged on an environmental basis, with growth in the national dairy herd being viewed as negative from a total emissions perspective. But the reality is that if Irish dairy production moved to any other part of the world, an additional 4m tonnes of carbon would be emitted.

It was encouraging to see sustainability very much on the agenda of both farmers and researchers. There is a clear appetite among farmers to do more in this regard through the adoption of new technologies that drive both economic and environmental sustainability.

Although the environmental message is strong, we must ensure our consumer-facing message is equally as strong. Nowhere is the risk to consumer confidence greater than when it comes to animal welfare standards. It is no longer acceptable for welfare standards to simply stand up to regulatory scrutiny. Standards must also be aligned to the brand image that is presented to the consumer.

Brand image

This brand image extends beyond the parlour and includes all aspects of the production system. With expansion has come increased discussion around calf management. Given the level of oversight by the Department of Agriculture, rearing practices stand up to regulatory scrutiny. However, to think the practice of calves being slaughtered at a young age does not present a risk to the Irish dairy brand would be naïve.

The fact that such a small number of farmers, less than 3%, do this should provide little comfort. In the world of social media, just one video or image taken out of context can quickly become reality in the eyes of the consumer. In this environment, the practices on a small number of farms could shape the perception of an entire industry.

Farmers need to be proactive and instead of hoping for the best they should work with the Department of Agriculture to ensure such practices are phased out within the next 12 to 18 months. Over this period, we should invest in the resources required to achieve this. Increased grants for calf-rearing facilities on dairy and dry stock farms should be fast-tracked. An 80% grant should be offered to dry stock farmers who give a five-year commitment to purchase and rear calves. Should some of this be funded by the dairy industry that benefits from the seasonal calving pattern that creates peak calf numbers in February and March?

Investment in sexed semen technologies, while improving the beef traits of calves coming from the dairy herd, needs to continue at pace. Those dairy farms that continue to focus solely on dairy traits when selecting sires must recognise that the economic benefits of their breeding programme need to be shared beyond the parlour. One obvious way would be to collect a tiered levy on dairy semen based on beef traits. It would be paid back as a subsidy to the owner of the calf at three months of age – in some cases it would be returned to the dairy farmer.

Ultimately, the end goal has to be to develop economically viable production models for all calves coming from the dairy herd. Genetics will only solve one part of the puzzle. An economic appraisal of all beef production models needs to be carried out. Is the most viable route for dairy progeny to target the commodity manufacturing market – therefore eliminating issues around carcase weight and allowing for the more economic bull beef systems to be adopted?

However, the first question that only farmers can answer is – does the ambition exist to turn a potential banana skin into an accolade for a sector that proactively sets the gold standard on welfare? It has often been said that the dairy industry must learn from the mistakes of an expanding New Zealand dairy industry but does the leadership exist to ensure that we do?

We would not allow individuals who were potentially being funded by a market competitor to enter into a bio-secure area of one of our medical device companies to take videos and contaminate the environment and then walk away.

So why have we allowed this exact scenario take place in relation to the invasion of a bio-secure pig farm by individuals last week?

These individuals could have severely undermined the disease status of our entire pig industry.

Yet the Irish Farmers Journal understands that no charges have been brought.

Minister for Justice Charlie Flanagan and Minister for Agriculture Michael Creed must ensure that the full rigours of the law are enforced to protect both farmers and their businesses. If current legislation is not adequate to do so, emergency legislation should be enacted to protect farmers.

Our suckler beef industry is on the brink of collapse. Farmers are receiving up to €200/head less than last year for beef – a year when average farm income showed profitability on beef farms to be down 22% to under €15,000. The price cuts come as our analysis shows retail prices in the UK to have increased. On top of this, processors are attempting to put an end to young bull beef systems. Farmers operating these systems underpinned demand for top-quality weanlings. Any attempt to force them out will be felt in the trade. Combine this with Brexit, Mercosur and environmental challenges, the future of our national suckler herd has seldom been so uncertain. The anger that we saw from farmers on the streets of Dublin on Wednesday should not come as a surprise to Government. We have a beef crisis and it is time the Government’s reaction reflected the seriousness of the threat.

This week, the cover price of the Irish Farmers Journal increases by 10 cent. It is the first price increase since 2017. Over this period, we have continued to invest in generating quality unique content aimed at safeguarding the economic viability of Irish farming and rural communities. The Irish Farmers Journal continues to be one of the largest-selling newspaper publications in the country thanks to the loyal support of our readers. We look forward to seeing many of you on our Tullamore Beef and Sheep demonstration farm on 24 July.