Letter: Newford should aim for optimum output, not maximum output

DEAR SIR: Last week’s article on the financial performance, or lack thereof, of the Newford Farm made sobering reading. There are many questions that need to be asked and indeed, answered. While we realise it is a research farm, if it doesn’t make a profit, it hasn’t a lot of relevance for farmers on the ground.

The article glosses over the fact that the accounts don’t include the farm manager’s salary. Why? Is it true that it is paid by a major processor and if so, do you not agree that this might cast a shadow over its independence?

If we assume sales of 100 cattle on average every year, let us look at costs on a per-head basis. Veterinary at €13,489 equates to €135 per animal sold. We note that €1,200 of this is due to mastitis so perhaps ICBF is placing too much emphasis on milk output for star ratings. Straw works out at over €81/head.

Other costs which seem very high are slurry spreading and fertiliser. While some might say that the physical performance is very good, which it certainly is, we would contend that it is too good. If output was cut considerably, inputs could be slashed and maybe leave a modest profit.

We see a farm losing €60,000, where it has a value of approximately €20,000 to rent out. That’s a swing of €80k. No business could sustain this.

We realise that everybody can’t lease out their farms as there would be no market, it’s just to put things in perspective. High output is fine if a realistic profit is being made, but if everyone had this sort of output we wouldn’t be able to give our produce away, let alone sell it. We need to look at optimum output for Irish farmers not maximum output.