While he would not revise price forecasts just yet, Glanbia's Sean Molloy would "see more light at the end of the tunnel on markets" now than he did last November.

At its supplier meetings in November, Glanbia presented a guide milk price of 27 cent per litre. "However, since that time, exchange rates have moved in our favour, the GDT auction appears to have bottomed out and there are positive signs on demand."

He added that processors as well as farmers will have to change after the abolition of milk quotas. "The way we interface with farmers, how we pay for milk, how we invest in research will all have to change. Farmer trust in their processor has to change," he said, "while there will have have to be greater transparency on milk price and investments".

About 10% of Glanbia milk growth between now and 2020 will be new entrants, he forecast. It will be more from 2016 onwards, he said. "We are very much open for business and there is no cost to expansion".

"There are farmers from outside Glanbia coming to us expressing an interest in joining," he said, "but there are also farmers looking to leave" he added. At this stage, 97% of Glanbia suppliers have signed milk supply agreements.

In reply to a question from the floor, he said that low oil prices are "a double edged sword" for dairy farmers. "It will reduce processing and transport costs but will affect demand for dairy producers from oil producing countries. He said that Glanbia has not bought oil or gas forward so will be able to pass on reduced processing costs to farmers.

Meanwhile a fund set up by Glanbia co-op of €20m fund will be worth about 0.75 cent per litre on a full year basis, but could be more significant on a per litre basis in the low volume early months of the year.

He agreed that dairy growth will not happen in Ireland unless farmers can earn a sustainable return.

According to IFA dairy chairman Sean O' Leary, the organisation is meeting processors in order to ensure that farmers are protected from the extremes of market volatility. "The peaks and troughs have got higher and lower and we need to see how we can we can plot our way through that," he said. He highlighted how farmers in the USA have been able to lock in good milk and input prices. "That gives them the tools to deal with volatilty," he said.

IFA has also met the banks. "They all have products that farmers can avail of - waiting until next April or May is not appropriate if you are going to have difficulties".

Farmers need to monitor cash flow this year and speak to their bank if required, Peter Young of the Irish Farmers Journal advised. He urged farmers to do monthly cash flow so that they can react in a timely way to mounting pressure.

In terms of reducing tax, "a company structure is the last port of call," according to Ben Fogarty of IFAC, suggesting that other measures should be sought first to reduce tax. His one key piece of advice was to work out the likely tax bill and make preparations to pay it.

Merchant credit is expensive and is one of the first sources of finance that farmers turn to. "It is one of the most expensive sources of credit," said IFAC's Ben Fogarty.