Irish farmers should use the abolition of milk quotas to become the global leader in low cost milk production.

That was the message from Monaghan man Olin Greenan who farms 480 cows on a share milking operation in New Zealand.

The worst thing that has happened New Zealand has been the high milk price, he said. "Farmers with loose money have added huge costs and a number of leaches have been added on". He said that New Zealand is losing its competitive advantage so a harsh milk price year may force people to re-visit their system.

He urged Irish farmers to take on the baton of low cost milk production. ""I want to come back here in five years and see Ireland taking advantage of its grass based low cost advantage".

The Monaghan native now farms 480 cows south of Auckland on a 170ha block. His key message to the Irish Farmers Journal dairy seminar in Kilkenny was "keep a low cost structure and squeeze as much grass as possible into cows".

The impact of a low milk price will not be really felt in New Zealand until next Spring, he said. In order to reduce costs, Olin plans to reduce AI charges by joining the sire proving scheme, which means test bull straws will be used. It will reduce breeding costs by two thirds.

One staff member is planning to travel during the winter and won't be replaced. Some machinery replacement will be delayed. Cash flow will also be examined to see if a 'principal holiday' is required. "If under pressure, talk to the bank early," he said.

His banker and farm accountant are key members of his team. "The banker knows as much about my business as I do," he said.

"They know that long term my goal is to buy a farm, so there will be business there for them". He also highlighted that his banker milks cows himself.

Feed costs always have to be considered, with some farmers having considerable scope to make savings.

It is not all about reducing costs, Olin said, with the potential for many farmers to drive higher output.

More grass into cows is vital this year, Olin said, in order to drive the quality and quantity of output. An early scan can be used to sell cull cows earlier and free up grass for the milking herd.

He said that he started a relationship with the bank early. "They love to see a good track record," he explained. In 2008 he took on his first share milking role, after winning the farm manager of the year title the previous year. He had declined an opportunity in 2007 at a time when prices were high. He started on a 50:50 sharemilking job on a 300 cow herd near Hamilton on the north island. He had 70 in calf heifers to help get started. They are generally three year agreements.

"Every dairy enthusiast should have New Zealand stamped on their passport," said Monaghan man Olin Greenan who now farms full time in New Zealand. "It's not that everything they do can be done here, but you just need to absorb some of the key messages".

He works on his cash flow budget every month to ensure that he remains on track. "Action cures fear" he said, stressing how farmers should work on their own figures to deal with potential problems.