The lack of scale at processing level, the extent to which milk processing co-ops are investing individually, and the challenge that exists to get on to global markets were all discussed in depth at the Dairy Ireland conference last week. Dairy Ireland is a group of dairy farmers involved in discussion groups around the country.
One point made repeatedly at the conference by many speakers and farmers from the floor was the serious gap in training for potential co-op board members in Ireland.
In some European countries, such as the Netherlands, young people, who may or may not one day be dairy farmers, are identified and trained in the basics of how a co-op operates from a very young age. Right through their early career as young farmers they are upskilled and trained in best co-op management.
Speakers acknowledged the ongoing training of existing board members but emphasised that training needs to be taken to a whole new level. They said it must start at a younger age and in future years this talent and knowledge would form the basis of talented co-op board members.
Meath dairy farmer Martin Heaney said: “If there is one thing we take from today, then it is the need to do more training about co-ops, our industry and what others are doing in other countries to educate young people. We need to do much more of this and someone needs to take this on and make it happen.”
Austin Finn from the relatively newly establish Macra-led initiative Land Mobility Service went through the various structures that farmers are working with and what changes can be expected.
He said: “From 31 March next year milk production partnerships (MPP) are gone and those in MPPs must register with the Department of Agriculture.”
Austin went on to explain why share-farming models might suit certain farmers. He explained that some farmers, such as trained farm managers or young farmers with no land available, second sons or daughters where the first son or daughter has taken over the ownership of the farm, are looking to become involved in farming and currently they have very few options.
He said: “From talking to dairy farmers, [it seems there is] more land available than young trained farmers willing to go farming – we need to fix that and that’s what we are here to drive.”
Dairy market analysis
Tim O Leary, deputy president of the IFA, did a SWOT analysis of the Irish dairy industry and explained some of the issues that need to tackled in the next number of years.
He said: “Family dairy farms, climate to allow us grow grass, independent Teagasc research, co-ops, and the IFA are all very strong strengths. We are missing a solution to price volatility and the planned transfer of land from one generation to the next.”
Tim then went on to explain the weaknesses as far he understood the industry.
“Scale is a weakness. We are very small in terms of the global industry. We need more collaboration between milk processors. Finally, the age profile of farmers in Ireland is a weakness. I also think that agricultural education is poor in Ireland and some of this blame must lie with farmers because in some cases our attitude can be very wrong.
“I think two years in an agricultural college is not enough and I want all young farmers to be on a par with other experts that come on to the farm.”
In the morning session dairy farmer, John O’Brien, Barryroe, and formerly Carbery and the Irish Dairy Board, spoke about his experience with Barryroe. He explained that land fragmentation was a big issue in West Cork and he said everyone will have to be far more imaginative in moving land to those who want to farm it commercially.
Aaron Forde, Aurivo chief executive and Irish Dairy Board chair spoke about the IDB and how it is changing and adding value to Irish dairy products.
Quotes
“Having participated on the board of the IDB, I see real change. We are on a journey and all co-ops need to maximise the use of the IDB where relevant. All of us are serving on boards and we need to always look at how we take cost out.” John O’Brien, Barryroe Co-op
“I have a fear that the recent tax changes in the budget for long-term leasing will increase the price of land from those outside the sector investing in the agricultural land.” Austin Finn, Land Mobility Service
“Twice people that leased land have got a bad deal from revisions to the SFP – many stacked entitlements have lost out and many leased land and entitlements and lost out. “I hope that new structures will take this into account and give some stability to both partners.
“The Milking parlour stands at the Ploughing were reminiscent of the property stands selling overseas property during the boom years.”
Tim O Leary, IFA deputy president
“I can see farmers investing in herds, machinery and technology such as robotic milking machines. Some of this is fantastic but some of it is worrying. We need to have a good cost base on some farms to protect against the downturn if milk price drops – invest appropriate to purpose.” Sean Molloy, Glanbia
Questions and answers
Q “Ownership of co-ops – dry shareholders still have a lot of the say – are we as dairy farmers not very vulnerable?”
A “I think we have to look at the mechanisms at individual co-op level but we can’t forget what these people have done for the co-op in the past. I wouldn’t dismiss the contribution of dry shareholders.”
Sean Molloy, Glanbia
Q “Have Glanbia any plans to affiliate better to the Irish Dairy Board considering they have a 20% shareholding in the board?”
A “We send about 23% of our produce through the Irish Dairy Board and work with them well on some products, especially when they show the USP [Unique Selling Point]. We also operate a dual strategy where we sell in our own right where it makes sense.
“Farmers must make decisions and economics decides. The same is true for GIIL and we will do what’s right for our shareholders and suppliers. There is now a clear mechanism for measuring our performance.”
Sean Molloy, Glanbia
The lack of scale at processing level, the extent to which milk processing co-ops are investing individually, and the challenge that exists to get on to global markets were all discussed in depth at the Dairy Ireland conference last week. Dairy Ireland is a group of dairy farmers involved in discussion groups around the country.
One point made repeatedly at the conference by many speakers and farmers from the floor was the serious gap in training for potential co-op board members in Ireland.
In some European countries, such as the Netherlands, young people, who may or may not one day be dairy farmers, are identified and trained in the basics of how a co-op operates from a very young age. Right through their early career as young farmers they are upskilled and trained in best co-op management.
Speakers acknowledged the ongoing training of existing board members but emphasised that training needs to be taken to a whole new level. They said it must start at a younger age and in future years this talent and knowledge would form the basis of talented co-op board members.
Meath dairy farmer Martin Heaney said: “If there is one thing we take from today, then it is the need to do more training about co-ops, our industry and what others are doing in other countries to educate young people. We need to do much more of this and someone needs to take this on and make it happen.”
Austin Finn from the relatively newly establish Macra-led initiative Land Mobility Service went through the various structures that farmers are working with and what changes can be expected.
He said: “From 31 March next year milk production partnerships (MPP) are gone and those in MPPs must register with the Department of Agriculture.”
Austin went on to explain why share-farming models might suit certain farmers. He explained that some farmers, such as trained farm managers or young farmers with no land available, second sons or daughters where the first son or daughter has taken over the ownership of the farm, are looking to become involved in farming and currently they have very few options.
He said: “From talking to dairy farmers, [it seems there is] more land available than young trained farmers willing to go farming – we need to fix that and that’s what we are here to drive.”
Dairy market analysis
Tim O Leary, deputy president of the IFA, did a SWOT analysis of the Irish dairy industry and explained some of the issues that need to tackled in the next number of years.
He said: “Family dairy farms, climate to allow us grow grass, independent Teagasc research, co-ops, and the IFA are all very strong strengths. We are missing a solution to price volatility and the planned transfer of land from one generation to the next.”
Tim then went on to explain the weaknesses as far he understood the industry.
“Scale is a weakness. We are very small in terms of the global industry. We need more collaboration between milk processors. Finally, the age profile of farmers in Ireland is a weakness. I also think that agricultural education is poor in Ireland and some of this blame must lie with farmers because in some cases our attitude can be very wrong.
“I think two years in an agricultural college is not enough and I want all young farmers to be on a par with other experts that come on to the farm.”
In the morning session dairy farmer, John O’Brien, Barryroe, and formerly Carbery and the Irish Dairy Board, spoke about his experience with Barryroe. He explained that land fragmentation was a big issue in West Cork and he said everyone will have to be far more imaginative in moving land to those who want to farm it commercially.
Aaron Forde, Aurivo chief executive and Irish Dairy Board chair spoke about the IDB and how it is changing and adding value to Irish dairy products.
Quotes
“Having participated on the board of the IDB, I see real change. We are on a journey and all co-ops need to maximise the use of the IDB where relevant. All of us are serving on boards and we need to always look at how we take cost out.” John O’Brien, Barryroe Co-op
“I have a fear that the recent tax changes in the budget for long-term leasing will increase the price of land from those outside the sector investing in the agricultural land.” Austin Finn, Land Mobility Service
“Twice people that leased land have got a bad deal from revisions to the SFP – many stacked entitlements have lost out and many leased land and entitlements and lost out. “I hope that new structures will take this into account and give some stability to both partners.
“The Milking parlour stands at the Ploughing were reminiscent of the property stands selling overseas property during the boom years.”
Tim O Leary, IFA deputy president
“I can see farmers investing in herds, machinery and technology such as robotic milking machines. Some of this is fantastic but some of it is worrying. We need to have a good cost base on some farms to protect against the downturn if milk price drops – invest appropriate to purpose.” Sean Molloy, Glanbia
Questions and answers
Q “Ownership of co-ops – dry shareholders still have a lot of the say – are we as dairy farmers not very vulnerable?”
A “I think we have to look at the mechanisms at individual co-op level but we can’t forget what these people have done for the co-op in the past. I wouldn’t dismiss the contribution of dry shareholders.”
Sean Molloy, Glanbia
Q “Have Glanbia any plans to affiliate better to the Irish Dairy Board considering they have a 20% shareholding in the board?”
A “We send about 23% of our produce through the Irish Dairy Board and work with them well on some products, especially when they show the USP [Unique Selling Point]. We also operate a dual strategy where we sell in our own right where it makes sense.
“Farmers must make decisions and economics decides. The same is true for GIIL and we will do what’s right for our shareholders and suppliers. There is now a clear mechanism for measuring our performance.”
Sean Molloy, Glanbia
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