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The €1.5m support package for calf-feeding systems is an "important first step in helping farmers take their share of the responsibility" in managing larger numbers of dairy calves from next spring, IFA dairy chair Tom Phelan has said.
The minimum investment required is €1,000 excluding VAT, while the maximum investment being proposed will be €7,500 excluding VAT.
"Farmers also need some guidance, advice and training on best calf-rearing practice to optimise the value of their calves, and I would urge farmers to attend their local AHI dairy calf event in January," he added.
I cannot understand how meat processors expect to keep their business viable long-term while they allow farmers to lose a fortune supplying beef at €3.55
ICSA
Irish Cattle and Sheep Farmers' Association (ICSA) president Edmond Phelan has said that the announcement of grant aid for calf-rearing equipment will not be of any benefit if the price of beef remains well below the cost of production.
“All grant aid is welcome for those who wish to invest in developing their farming activity. However, rearing calves at current beef prices is a complete waste of time.
“I cannot understand how meat processors expect to keep their business viable long-term while they allow farmers to lose a fortune supplying beef at €3.55.
“The reality is that markets everywhere are buoyant on the back of protein scarcity in China. Even Brazilian beef price is getting close to Irish beef price now. If meat processors want farmers to rear the 2020 crop of dairy calves, then we need an immediate and substantial beef price rise in January. Otherwise ICSA will be advising farmers that buying calves is a totally unprofitable endeavour and they would be well advised to hold on to their money.”
ICMSA response
Pat McCormack, Irish Creamery Milk Suppliers' Association (ICMSA) president, welcomed the scheme but maintained that it should be "demand-led" with a fasttrack approval system designed so that applicant farmers could be guaranteed approval within five days of application to ensure that the scheme can play a role in supporting the imminent calf-rearing 2020 season.
"With an opening date of 7 January 2020 and with calving starting on most farms in mid to late January, it is essential that there is a rapid turnaround on approvals so that farmers have certainty in relation to the grant that they will receive.
"ICMSA has put a formal proposal to the Minister for Agriculture, to provide an incentive for dairy beef production. The minister has funding available under Budget 2020 and we are firmly of the view that this funding is best utilised to develop a profitable dairy beef production system with significant benefits for the wider rural economy and the environment. We are convinced and have the evidence that sustainable dairy beef production is the solution to multiple questions that require urgent answering," he said.
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