Reasons to be a cheerful dairy farmer

Cuts to the nitrates derogation, uncertainty over the renewal of the derogation, spiralling costs, falling profit and relentless pressure from Government and NGOs on the sector are the primary reasons why the mood among dairy farmers is so low.

It’s OK to acknowledge these issues and accept they are major issues, while at the same time acknowledge some of the positives and reasons for optimism about dairying in Ireland.

The following are just some of the reasons why farmers should be more confident about the future.

There is now a very clear line of sight around the future direction of dairy beef calves in Ireland. Compared to three years ago, farmers have clarity on what they need to do. There are two sexed semen labs selling 150,000 straws last year and expected to grow to 250,000 in 2024 from a starting point of close to zero a few years ago.

The dairy beef index (DBI) and the commercial beef value (CBV) have been developed to give guidance to farmers on the best beef bulls to use on dairy cows and the best calves for beef farmers to buy. Calf slaughter is banned.

There is optimism that the European Commission changes to the live transport of calves will be workable for Irish exporters of calves.

The national genotyping programme is facilitating better information on calves and will fast-track genetic gain. Gaps in knowledge are being filled.

The short- and long-term outlook for dairy markets is very positive. Prices are rising as demand increases and the increase in global supply slows.

In the longer term, in Europe, New Zealand and the US, the opportunities for these dairy-exporting regions to grow supply is effectively over because of environmental restrictions among other issues.

The European Commission is forecasting milk production in Europe to decline by 2.2% by 2035.

Even though milk supply in Asia and North Africa is set to increase, this increase is not expected to keep pace with increased population and higher living standards.

As people in the developing world get richer, they tend to consume more dairy. Therefore, if the growth in demand stays steady and the growth in supply reduces then the market returns should be good. That means a very positive long-term outlook for dairy prices.

Has there ever been as many young people studying agriculture? Between the former institutes of technologies and universities there are 2,386 students studying agriculture in third level and another 6,000 or so studying for agricultural qualifications across Teagasc full-time, part-time and distance learning courses.

While not all will go farming or indeed work on farms, the sector remains vibrant.

As the pace of change picks up, so too will the opportunities for young farmers to develop their skills and grow their farming businesses.

Opportunities for highly skilled and ambitious young farmers are only going to increase

A combination of the high age profile of dairy farmers, lack of identified successor, investment required for compliance and a heavy workload will mean that retirements from dairy farming are likely to increase.

The question is, who is going to take over these farms?

If you look at what has happened in other countries, some farms are going to grow bigger and others are going to decline. Existing farmers are going to have to face up to that fact and start preparing for whatever category they are going to be in.

The flip side is that opportunities for highly skilled and ambitious young farmers are only going to increase.

Not all emerging technology is new, or requires a USB lead for it to work. The two biggest innovations in dairy farming over the last few years are the use of clover and flexible milking.

Best practice for managing clover swards continues to evolve (read more here).

Farmers, researchers and advisers are learning from past mistakes and changing strategies.

Clover is a game-changer for farming and if research performance can be translated into farm performance it will be revolutionary.

Flexible milking is another area where incredible results are being achieved in terms of cow performance from significantly less labour input such as 10-in-seven milking.

Even measuring grass, which has been around for 30 years, is still a new technology on most farms and if taken up can seriously ramp up performance and profit.

The information gathered by the new national genotyping programme is only the starting point for faster genetic gain as a result of new breeding technologies.

Farmer appreciation for biodiversity has improved enormously compared to even three or four years ago. Hedgerows are being managed better on intensive farms and there is greater awareness of habitat areas and high biodiversity areas.

Nobody is suggesting the work is finished, or that everything is perfect, but at the same time progress needs to be acknowledged.

As many farmers are proving, it is possible to farm intensively and profitably while at the same time provide good habitats and spaces for nature.

When compared internationally, Irish dairy farms are in a very good place when it comes to biodiversity and this is something Irish farmers should be proud of.

There are a number of elections coming up in 2024, with local and European Parliament elections in June and the possibility of a general election at some stage in 2024.

These elections present an opportunity for the public to vote people in and out.

Looking at the Oireachtas, there are very few politicians standing up for farming and fewer again standing up for dairy farming and the retention of the nitrates derogation.

It’s a similar story in the European Parliament where Irish MEPs who actively support farming and the derogation are outweighed by those who are against it.

Essentially, elections provide the public with an opportunity to reward or punish politicians, and dairy farmers will be looking forward to using their vote at the next election to do just that.