Cost control is an essential role for dairy farmers to tackle cost volatility in the sector, Teagasc has said.

Prof Laurence Shalloo was speaking at the Teagasc dairy open day in Moorepark, Fermoy, on Wednesday as part of the authority’s business of farming village.

There has been a 50% increase in costs of production since 2020, which according to Teagasc, is a result of input cost inflation, weather effects, higher input systems and investment at farm level.

Teagasc’s head of animal and grassland at the research and innovation programme Prof Shalloo said there is a large variability in costs on Irish farmers.

“There is substantial differences in profit levels between farms and there are opportunities for a refocus on costs of production across all farms,” he said.

“Cost control is essential every year and improving grass utilisation while reducing purchased feeds has shown consistently that it increases profits. Increased volatility in input costs and milk prices highlight the need to further build resilience into Irish dairy systems.”

Outlook

However, Teagasc director Prof Frank O’Mara said there is a positive outlook for dairying at the moment and there are good opportunities for young people to consider a career as a dairy farmer.

“Ireland’s grass-based milk production system ensures milk production in Ireland is competitive internationally,” he added.

“Grazed grass is the cheapest feed for cows and systems built on that are key to the sector being sustainable and resilient to both climate change and economic shocks.”

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