Business grows down on the farm

Tourism, cheese-making and other new ventures are helping farms boost income, writes Colm Ward

For six generations, members of the Hourihane family have farmed their land near Skibbereen in west Cork. So when Mr Finbarr Hourihane took it over following his father's retirement, he was inheriting more than just a few acres of land. He was inheriting a tradition.

He soon realised, though, that the farm income would have to increase if it was to remain viable.

"Before my father retired, I had started looking for ways to add to the farm income. I looked at deer, sheep, poultry and growing tunnels. But being from a dairy background, my biggest asset was very good quality milk. I then looked at adding value to the milk," he says.

He asked the Food, Science and Technology Department at University College Cork to conduct a feasibility study to examine the various options available to him. It looked at products such as ice- cream, chocolate and yoghurt, but concluded that cream cheese would be the most suitable to maximise the value of his milk.

Meanwhile, his farm manager, Mr Jerry Lanigan, embarked on a series of courses in cheese-making, health and hygiene at UCC and Teagasc's Moorepark facility near Fermoy, Co Cork.

Between them they developed a dairy on the farm in spring 2000 and, with the help of UCC, finalised a production method and conducted trial production runs and focus group tastings. When they were satisfied with the cheese, they formed Gallán Farmhouse Foods Ltd, named after an old standing stone on the farm.

Their first venture into the cheese market was that April, when they began selling to hotels and restaurants.

By summer 2001the cheese went on sale in several local shops. Solid sales in the three local SuperValu branches led to the chain agreeing to stock the cheese in its stores nationwide.

In its first year of operation, the turnover of Gallán Farmhouse Foods was €40,000. Sales to September of this year reached €60,000 and Mr Hourihane expects turnover for the full year will be about €75,000 to €80,000.

"We are now at a very critical stage of the development of our business. All the decisions have been made regarding the product, packaging, labels, delivery. Our cheese is stocked by SuperValu, by Pettits supermarkets in the south-east and by Sheridan Cheese Mongers," he says.

He estimates that converting his milk into cheese quadruples its value. A gallon of milk that would fetch €1.25 if sold directly can be used to make 1kg which sells for an average of €5.

Mr Hourihane is one of thousands of Irish farmers examining ways to supplement their income. From cheese-making in west Cork, to mushroom-growing in Mayo, to waffles in Wicklow, these "agripreneurs" are changing the face of the farming sector.

"A lot of people are striving to do something that will create extra income," says Mr John Whiriskey of Teagasc's Rural Development Centre in Athenry, Co Galway. He estimates that up to 100,000 farmers have begun such enterprises in recent years.

Mr Whiriskey is head of Teagasc's Opportunities Programme, an initiative giving farm families a chance to examine the viability of their farms and helping them to find ways to boost income. Training courses are also provided to farmers interested in diversifying into other areas.

The programme is about giving people "the confidence to do something", he says. "We would be happy if 10 per cent of these people go into business on their own," he says. "There is so much ability required to get income in these areas that it is easier for many to get a job."

For those who do start their own businesses, rural tourism is one of the most attractive options. While bed-and-breakfast type accommodation remains popular, many are now offering whole packages aimed at attracting tourists to rural areas and keeping them there. Rural tourism generates €114 million in revenue every year and Teagasc expects this to double to €229 million over the next five years.

Other popular options include deer farming, sport-horse breeding, tulip bulb production, forestry and floristry. The production of speciality foods, such as cured meats, cheese, jam, chocolate and ice cream is also expected to become more widespread. An Bord Bia predicts this sector will grow by about 65 per cent over the next 10 years. It is valued at €250 million in a total food market of €8 billion in the Republic.

Despite the wide range of activities, many of these businesses experience similar problems. The biggest obstacle for many is raising enough money to get started, says Mr Whiriskey. But grants are available from rural development agencies such as LEADER and the local enterprise boards. Costs associated with meeting health and safety standards, distributing products, packaging and marketing also present difficulties for many businesses.

But, as Mr Hourihane discovered, many of these problems are offset by the satisfaction that comes from knowing that the farm is generating real income.

"I can't tell you how good it is to see our milk going into a product with our farm's name rather than disappearing into the milk tanker. This feels like farming again," he says.