'We’re a high-cost system whether we like it or not'

The liquid milk industry meets on Thursday 26 October to discuss its future at the annual Teagasc winter/liquid milk conference.

Some 10% of the country’s 18,000 dairy farmers calve all year round for the liquid/winter market – the numbers in the sector have fallen over the past decade.

One farmer who has stayed in the sector is Joe Devine. Hefarms on heavy ground in Bornacoola, Co Leitrim.

He calves 70 animals and is milking 54 high-yielding pedigree Holstein cows. He supplies milk to Aurivo.

“We have heavy ground here… we’re a high-cost system whether we like it or not so we have to maximise each cow.”

There is a quiet sense of optimism among farmers for the first time in almost a decade. Autumn calving figures have stabilised too.

There was a mini-exodus from the sector in favour of the manufacturing side of dairying by some farmers before and after quotas.

Spring calving meant the cows were dry in December and there were no Christmas Day milkings to contend with while the manufacturing milk farmers were able to grow and expand with greater ease once quotas were removed.

Devine said: “You’re not going to get rich doing winter or liquid milk but it gives you money and cashflow over a quiet period.”

Devine argues that retailers and processors sped up the exit from the liquid sector.

“The downfall to the liquid sector started when dairies started producing own-brand milk for retailers. It gave all the margin and the power to the retailer and took both away from the farmer.”

The annual Teagasc winter /liquid milk conference takes place on Thursday 26 October in the Ardboyne Hotel, Navan. The Irish Farmers Journal will be reporting live from the conference on www.farmersjournal.ie.