DOUBLING THE national milk output by 2020 will cost Irish dairy farmers up to €1 billion, the Teagasc national dairy conference in Cork was told yesterday.
Attending delegates were told by Irish Farmers’ Association national dairy chairman Kevin Kiersey that a major co-operative effort was needed to meet the target by all parties involved.
Mr Kiersey urged financial institutions to co-operate constructively with farmers and Government, only a few weeks away from the announcement of the 2012 budget, to provide expansion-friendly fiscal policies between now and 2015 and beyond.
“However, while there has been much talk about the investment and working capital requirements of the processing industry, the fact is that by far the greatest investment which will be required to deliver expansion will be on farms. Delivering 50 per cent more milk by 2020 could cost farmers up to €1 billion,” he said.
“It is therefore crucial that the processing industry would respect the need for farmers to prioritise their resources for on-farm investment and would plan their financial requirements accordingly.
“It is also vital that financial institutions would work closely together with farmers in supporting their plans, and would make available keenly priced finance to help expanding farmers stay competitive,” he said.
The 400 farmers attending the conference were told Teagasc will be setting up a new professional training course for dairy farm managers next year.
Teagasc director Prof Gerry Boyle said this was one of the initiatives identified in the Food Harvest 2020 report and arose from the demand from many farmers for such a programme to help them double output by that year.
International dairy expert James Allen of the AgFirst organisation in New Zealand said growing a farm business was rewarding though not without risks. “You must be clear on the reason for growing your business. You need a simple plan and this will help you communicate your future direction with all those involved,” he said.