DAIRY FARMERS will be challenged over the next two days at the Teagasc National Dairy Conference to expand their operations to cope with volatile dairy markets and lower prices for milk.
Hundreds of dairy farmers are expected to attend the conferences in Cork and Athlone which will hear from international and local experts in dairying, processing and marketing.
Teagasc, which organises this annual event, estimated milk production can be increased by 78 per cent at farm level over the next 10 years.
It said this can be achieved by a 3 per cent annual productivity growth in dairy cow performance, a 25 per cent increase in cow numbers and a further 25 per cent increase from farmers specialising in milk production and removing non-dairy stock.
The agriculture and food development authority also said a further 10 per cent increase can be achieved by more intensive management of farms to bring dairy levels from 1.9 to 2.1 cows per hectare.
"No extra land from other non-dairy farmers is required to achieve this but, long term, it is envisaged that some large cattle, tillage [or] sheep farmers' land will be in dairy production either through long-term leasing, partnerships or owner farmed," said Teagasc.
"Energy and inflationary issues are driving up farm costs while milk price will be very volatile, resulting in a continued price-cost squeeze," it added. "This conference will challenge farmers to expand, to become more efficient, and to reduce costs, by adopting new technologies," it said.
"We recommend that families, wives, partners, and heirs . . . attend together so that the issues raised can be . . . discussed," said the statement.
The Irish dairy industry is a major contributor to the economy with approximately 20,000 dairy farmers, 9,000 employees in dairy processing and 4,500 people employed in support and ancillary services.
Over 80 per cent of dairy output is exported annually. Exports were valued at €2.36 billion last year.
The conference sessions begin at 10am each day. This morning's session is in Rochestown Park Hotel, Cork. Tomorrow's is at the Hodson Bay Hotel, Athlone, Co Westmeath. The main speaker, Preben Mikkelsen, the former executive director of the Danish Dairy Board, will address both meetings as will Teagasc director, Prof Gerry Boyle.