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Controlling Costs Key to Expanding Milk Production in Volatile Markets 26 November 2008 The planned dismantling of the EU milk quota system will open up new opportunities for Irish milk producers to expand. The Teagasc National Dairy Conference in Cork heard how Ireland is one of just six countries in Western Europe that is expected to be able to expand milk production in line with the quota increases agreed as part of the CAP ‘health check’. Preben Mikkelsen, a Danish dairy and food consultant, told dairy farmers at the conference today, Wednesday, 26 November, that the structure of milk production in Ireland is a major challenge to expansion, and that the Irish dairies have to combine to be competitive. He also said that it is essential to establish an efficient quota allocation system, without restrictions, to allow the structure of milk production to improve. Preben Mikkelson was positive about the future demand for dairy products pointing out that consumption in the European Union is expected to increase by the equivalent of 8 million tonnes of milk by 2014, while global demand is expected to increase by 2.5% per annum. Speaking at the National Dairy Conference, Teagasc Director Professor Gerry Boyle said that milk price volatility is now a fact of life due to the reduction in market supports. But he said that Teagasc research has shown that with ‘best management practices ‘expansion can be profitable. He said that farmers will need to implement strategies to deal with price volatility if expansion in milk production is contemplated. Relentless cost containment will be a critical element of any strategy. Professor Gerry Boyle said that even looking at a conservative expansion scenario of a 23% increase in quota by 2020, it could add €750 million to Ireland’s GNP. Dairy farmer, Shane Fitzgerald from Ballynoe, Co. Cork outlined his strategy to control milk production costs on his farm. His goal is to put in place a low cost milk production system that will leave a profit margin, even in periods of low milk price. In 2008, Shane Fitzgerald estimates that his feed and fertilizer costs will be down by €62 per cow, yielding a saving of €7,440 for his 120 cow herd. This cost saving was achieved at a time when the price of both feed and fertilizer increased compared to the previous year, and was due to increasing the amount of grazed grass in the cow’s diet and by utilizing slurry to reduce artificial fertilizers usage. Teagasc Dairy researcher, Pardaig French said that farmers with low milk production costs can expect to achieve a good return on investment from increasing output using grass based systems with low capital investment in depreciating assets. He advised producers who can produce milk at less than 15 cent per litre common costs to consider expanding, while his advice for producers with common costs over 20 cent per litre to focus on adopting technologies to reduce costs in order to increase farm income.
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Costais Rialaithe mar Eochair chun Táirgeadh Bainne a fhairsingiú i Margaí Luaineacha 26 Samhain 2008 Beidh deiseanna nua ann do tháirgeoirí bainne na hÉireann fairsingiú mar gheall ar dhíchóimeáil chóras cuóta bhainne an AE atá beartaithe. Chualathas le linn Chomhdháil Náisiúnta Déiríochta Theagasc i gCorcaigh go bhfuil Éire ar cheann de shé thír in Iarthar na hEorpa a mheastar a bheidh in inmhe táirgeadh bainne a fhairsingiú de réir na méadaithe cuóta mar a aontaíodh leo mar chuid de 'sheiceáil shláinte' an CBT. D’inis Preben Mikkelsen, comhairleoir déiríochta agus bia ón Danmhairg, d’fheirmeoirí ag an gcomhdháil inniu, an Chéadaoin, 26 Samhain, gur dúshlán mór é struchtúr na táirgthe bainne in Éirinn in éadan fairsingithe, agus go gcaithfidh na déirithe Éireannacha teacht le chéile le bheith san iomaíocht. Dúirt sé fosta go raibh sé riachtanach córas éifeachtach dáilte cuóta a bhunú, gan laincisí, ionas gur féidir le struchtúr táirgthe an bhainne feabhsú. Bhí Preben Mikkelson dearfach faoin éileamh sa todhchaí le haghaidh táirgí déiríochta agus chuir sé in iúl go réamh-mheastar go n-ardófar tomhaltas san Aontas Eorpach le comhionann 8 milliún tonna de bhainne faoi 2014, agus réamh-mheastar go méadófar éileamh domhanda le 2.5% gach bliain. Arna labhairt dó ag an gComhdháil Náisiúnta Déiríochta, dúirt Stiúrthóir Theagaisc, An tOllamh Gerry Boyle, gur cuid den saol é anois luaineacht praghais bhainne mar gheall ar an laghdú ar thacaíocht margaíochta.Dúirt sé fosta, áfach, gur léirigh taighde Theagaisc gur féidir brabús a bhaint as fairsingiú ach na ‘dea-chleachtais is fearr bainistíochta” a bheith ann.Dúirt sé go mbeidh ar fheirmeoirí straitéisí a chur i bhfeidhm chun dul i ngleic le luaineacht praghsanna má shocraítear ar fhairsingiú ar tháirgeadh bainne. Beidh siarshrianadh costais mar chuid an-tábhachtach de straitéis ar bith.Dúirt an tOllamh Gerry Boyle go bhféadfaí cur le OTN na hÉíreann le €750 milliún dá measófaí, fiú, cás coimhéadach fairsingithe faoi 2020 ina mbeadh ardú de 23% ar an chuóta ann. Léirigh feirmeoir déiríochta, Shane Fitzgerald as an mBaile Nua, Co. Chorcaí, a straitéis chun costais táirgthe bhainne a stiúradh ar a fheirm.Is é an sprioc atá aige ná córas táirgthe bhainne ar chostas íseal a chur i bhfeidhm ionas go mbeidh corrlach brabúis ann, fiú le linn tréimhsí nuair a bhíonn costas an bhainne íseal. I 2008, réamh-mheasann Shane Fitzgerald go mbeidh costais a bheathaithe agus a leasachán síos le €62 an bhó, agus sábháil €7,440 ann dá áirí 120 bó mar gheall air.Baineadh sábháil costas amach ar am nuair a tháinig méadú ar chostas beathaithe agus leasacháin ar aon i gcomparáid leis an mbliain roimhe, agus ba mar gheall ar an líon méadaithe féir innilte i gcothú na bó agus trí úsáid a bhaint as sciodar chun úsáid leasachán saorga a laghdú. Dúirt taighdeoir Déiríochta Theagaisc, Pardraig French, gur féidir le feirmeoirí a bhfuil costais ísle táirgthe bainne acu a bheith ag dúil le brabús maith ar infheistíocht ó chórais fhéarbhunaithe a bhaineann úsáid as aschur a bhfuil infheistíocht íseal caipitil acu le sócmhainní luachlaghdaithe a mhéadú.Chomhairligh sé do tháirgeoirí ar féidir leo bainne a sholáthar ar chostas atá níos lú ná 15 cent an lítear comhchostais smaoineamh ar fhairsingiú, agus chomhairligh sé do tháirgeoirí a bhfuil comhchostais níos airde ná 20 cent a lítear díriú ar theicneolaíochtaí a ghlacadh ar bord chun costais a laghdú ionas go méadófar ioncam feirme.