What is the mood among farmers?

Despite being a quite difficult period in the pig, cereal and dairy sector, the mood among farmers is surprisingly upbeat. Dairy farmers are very determined to follow through on expansion plans. Among beef farmers, margins continue to be under severe pressure. Many farmers are looking at moving to two-year-old beef from suckling.

What are the challenges as Ireland increases its milk output?

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The challenge will be getting the best possible returns for farmers. I feel they have already done a great job of putting the processing capacity in place and supporting the significant number of new entrants. I think many farmers who have expanded will have to change from focusing on animal husbandry, which they may have been very good at, to being people managers and record keepers with technology, labour and administration taking up a lot of their time.

Is the UK dairy industry under pressure?

All UK producers have been under pressure for the past 18 months. However, the Danish and Czech markets are probably in a worse situation than the UK. The UK industry has a ready-made market of 70m people on its doorstep and over 50% of the milk goes to liquid. The UK is after coming out of two good years in 2013 and early part of 2014, but it is a high-cost system and a section of farmers have struggled this year. It is a very uneven market, where price variations can be over 10p. Those lucky enough to have supermarket contracts have continued to enjoy very good prices.

Will plastic wrap come under pressure environmentally?

Baled silage has become a very important tool in good grassland management and maximising grass efficiency for Irish farmers. However, the volumes of plastics used are very high, with an estimated 25,000 to 30,000t used. The mitigating factor is that, through the very successful IFFPG recycling scheme, in excess of 70% of all agri-plastics are recycled, which is a higher rate than anywhere in Europe.

What are the biggest challenges in a climate and environment context?

Restriction on stocking rates around the nitrates directive is the biggest impediment to expansion and profitability. Greenhouse gas emissions, where our target is to decrease emissions by 20% by 2030, will have a definite cost impact on farmers. More immediate impacts might be seen in regulations around antibiotics and the licensing of Roundup.

How has the joint venture model worked well for Volac?

The Neville family have always been very open to working closely with customers and suppliers alike. Innovations such as the development of the first acidified calf milks 45 years ago, the big bale silage system, colostrum replacement products and more recently computerised calf feeding systems have involved a great deal of collaboration. We currently have JVs with Church & Dwight in the US, Dutch co-op DOC Kas and Arla UK. The latest JV is with the Wilmar Group, the largest agribusiness in Asia.