According to the joint Teagasc/Cork Institute of Technology report published this week, Irish dairy farmers are the most profitable in the EU, despite receiving the lowest milk price. The analysis of Ireland’s grass-based dairy model showed a net profit margin of 8c/l excluding owned labour. As Jack Kennedy reports, this compared to profit margins of 2-4c/l being returned within the main dairy producing regions of Europe.
Teagasc pinpoints efficiencies at farmer level as the source of Ireland’s competitive advantage. At 24c/l, production costs associated with the seasonal grass model, again excluding owned labour, were shown to be 6-14c/l lower than in other EU regions.