Dairy processors finally stir on succession

Is the penny finally dropping with the major dairy processors around the whole issue of succession?

There definitely appears to be a greater realisation among senior managers at co-op level that getting young people to take on dairy farms and milk cows may not be simple.

Tirlán CEO Seán Molloy admitted at a recent climate change conference that attracting young people into farming was an “emerging crisis internationally”.

Meanwhile, the challenges associated with succession have prompted Dairygold to expand the role of its milk supply manager to include milk supply and farm succession.

Problems around succession in dairying may seem surprising given that the average income on dairy farms – those with around 100 cows – is forecast to reach €113,000 this year.

You’d think that this level of income would have people climbing over one another to get into the business.

But the opposite appears to be the case, Molloy told the industry conference. He said the “exits” were now far exceeding the numbers looking to get into milk production.

Processors maintain that the drift out of dairying has not been helped by tighter regulations around water quality and climate change, and increased bureaucracy overall.

And there is merit to this argument.

However, The Dealer would contend that there is a lifestyle element that has also to be addressed.

Anyone who has spent time on dairy farms of late will know that the lads and lassies milking cows are at a half trot from the third week in January when cows start calving till the middle of June when the breeding season ends and the slurry is out after the first-cut silage.

Positive development

Expansion in dairying has been a largely positive development for the rural economy, but there has also been a cost for the farmers involved – especially the sole operators who are not in a position to take on labour.

An income of €113,000 on a 100-cow dairy unit seems very attractive but, crucially, this figure does not include the farmer’s labour. And the working week can regularly top 60 or 70 hours during the spring.

Add income volatility and stress to the mix, and you understand why a ‘9-to-5’ job in manufacturing or the service sector seems a far more attractive proposition than milking cows for a farmer’s son or daughter.

The really strong tradition among farmers of promoting educational achievement is also a factor in the succession debate. Ironically, this tradition has robbed farming of some of its best talent by giving youngsters options.

Tackling succession – or more accurately, the absence of it – at dairy farm level will not be simple.

There are numerous factors at play here, and no quick fixes.

But promoting a healthy work-life balance among existing dairy farmers would be a very good first step.