Following three decades of restriction, Irish dairy farming entered a new phase on Wednesday morning. Once midnight passed on Tuesday, trucks began collecting the first milk unrestricted by quota since 1984. Queues quickly formed outside processors, even as quota parties were wrapping up around the milk production region.
Following three decades of restriction, Irish dairy farming entered a new phase on Wednesday morning.
Once midnight passed on Tuesday, trucks began collecting the first milk unrestricted by quota since 1984. Queues quickly formed outside processors, even as quota parties were wrapping up around the milk production region.
On Wednesday afternoon, however, the Global Dairy Trade auction provided sobering news. A 10.8% fall in the GDT means prices have dropped right back to where they were on 6 January.
Final superlevy estimates of around €75m and sluggish grass growth mean dairy farmers will need to manage cashflow very carefully in the coming months.
None of this could dissipate the genuine sense of excitement that surrounds the end of quotas.
In 1984, Ireland, only a decade into its membership of the then EEC, was stopped in its tracks just as the technical ability to expand and intensify dairy production was being developed. Teagasc economist Thia Hennessy put the cost of the quota era at €1.5bn in quota purchase and €230m in superlevy fines.
Now, our grass-based milk production is poised to grow at a faster rate than any other country in the world.
In the words of Minister for Agriculture Simon Coveney: “The shackles are off and the sector can start to realise its full potential.”
ICBF figures show an extra 100,000 dairy calves this year, highlighting that the throttle has been engaged, with record production realised despite once-a-day milking.
As the post-quota era dawns, a series of supplier switches between milk processors are imminent.
The Irish Farmers Journal understands about 35 farmers are set to leave Arrabawn, with most going to Dairygold. About 10 Arrabawn suppliers are poised to join Glanbia, but it’s understood that twice that number, bringing about 10m litres with them, will transfer in the other direction, meaning Arrabawn will be net gainers of milk from Glanbia. These farmers are from Wexford and the “Barrowvale” Carlow region. A handful are switching from Arrabawn to Aurivo.
None of these switches would have been visible on Wednesday. The first collection by Glanbia of former Arrabawn suppliers is due to take place on Friday morning, the Irish Farmers Journal understands. First collection of other new suppliers will ensue in coming days and weeks.
Strathroy have about a dozen new suppliers, some new entrants, a handful from Tipperary co-op and a few from the southeast.
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