The cost of producing milk on Irish farms is "heading in the wrong direction", according to Dr Liam Downey, director of Teagasc. The problem threatens farmers' ability to compete globally as EU subsidies diminish. Having increased by 4p per gallon in 1995 and as much as 8p per gallon in four years, "unit costs on many Irish dairy farms are too high to remain competitive in a global context", says Dr Downey.
Irish herds are likely to decline by a further 35 per cent by 2005, to fewer than 28,000 herds, with cow numbers falling by 220,000, assuming continuing milk quotas. In Ireland, the drop in both is strongly associated with herds of fewer than 30 animals.
But there is good news with confirmation that, using the Moorepark dairying system, more than 1,300 gallons of milk per cow is achievable with enhanced fat and protein levels. "High genetic merit" cows have been found to perform well on Ireland's low-cost grassland systems, says Dr Downey.
By adopting the new system, concentration on grass use and high genetic merit cows, a target of 2,000 gallons was achievable by 2000. Ultimately, dairy farm income could be increased by 10p to 20p per gallon. Equally, increasing protein content could boost incomes significantly.
On beef, he says, supplies needed to be reduced further if producer incomes are to be maintained in the longer term. "A consumer-orientated beef policy, involving better targeting of EU direct payments to farmers for the adoption of production systems that are more acceptable to consumers and environmental requirements, is essential in maintaining and improving incomes."
The grassland technology developed by Teagasc could double beef output per hectare, he adds. Its successful "cash in on grass" campaign had that target in mind. While organic beef produced by Teagasc was shown to secure a 15 per cent premium, there are also major opportunities in organic liquid milk production, which has been successful in Scandinavia.
Irish lamb, he says, is competitive. But, because of relatively poor technical performance in sheep enterprises, Ireland is not cashing in on its advantages over other producers.
On crops, he says cereal costs could be reduced, with savings on fertiliser use and environmental benefits. Research successes consolidated by Teagasc during 1996 were in the production of better potatoes for chip production and finding improved potato blight control techniques.
