At opposite sides of the world, dairy farmers from New Zealand and Ireland heard a similar message this week. Aidan Brennan reports from the Pasture Summit in Hamilton, New Zealand, while Jack Kennedy reports from the Teagasc dairy conferences in Cork and Athlone this week.

One of the key messages was that grass-fed milk will be a unique point of differentiation on global markets.

At the Cork conference, we heard how moving away from Ornua membership (Irish Dairy Board) has been a success for the Kerry Group. It went its own way over 30 years ago in what was a large and developing dairy market, and its share price is now heading towards €100 per share. Kerry milk suppliers continue to push for milk price bonuses they feel they are owed.

It is clear from comments at both Teagasc conferences that Bord Bia’s Origin Green message is held in high esteem but there is clearly a need to reinforce what grass-fed stands for.

Bord Bia’s Origin Green message is held in high esteem but there is clearly a need to reinforce what grass-fed stands for

For a long time now, there have been rumblings of potential tie-ups between Irish processors and New Zealand’s Fonterra, given that the kiwi milk peak coincides with low Irish supply. How this might work continues to develop and the fact that the Glanbia board have just recently returned from New Zealand may reignite developments in this space.

Since New Zealand milk prices lifted close to European prices over 10 years ago, New Zealand farmers have gone down a route of higher supplements to drive output at the expense of profit and increased debt. Very clearly, there is now a groundswell questioning this model with over 1,000 New Zealand dairy farmers attending the Pasture Summit gatherings in the North and South Island of New Zealand.

Dairy calves

Both Oceania and Ireland are struggling to cope with dairy-bred calves that arrive en bloc each spring. It was clear from the Australian animal welfare speaker at the Teagasc conference that the “bobby calf” model we associate with New Zealand and Australia won’t work in the European Union. Much tighter legal restrictions on transport but also a much more discerning consumer won’t allow this model develop.

Staying away from this bobby calf model leaves dairy farmers with two main options: breed better calves for better beef traits or use sexed semen. The reality is that a combination of both might be the solution. How far are we from breeding better calves from the dairy herd? It is fair to say it is well down dairy farmers’ wishlists.

For the last 15 years, we have hammered home the fertility and milk solids message. This has developed an animal with more dairy than beef characteristics. It is unfair to expect dairy farmers looking for replacements to change a breeding objective.

However, milk suppliers that have finished expanding or have enough replacements should be breeding for a better beef type calf to increase output without compromising on fertility or calving ease.

The ICBF dairy beef index that has been talked about for a long time should help shine a brighter light on this. In its absence, Andrew Cromie was very clear: trying to bring a mixed bag of dairy-bred calves through to beef is not profitable for beef farmers.

While the results of the sexed semen trial fell below expectations, it is clear that we need to push hard for another trial. We need Teagasc to deliver on improved practical guidelines for sexed semen usage, such as timing of insemination. The fact that 25% of trial herds had a better conception rate with sexed semen is enough to take this technology to the next step. We cannot afford to stop development in this space.

The other issue that came through loud and clear in the trial results is that we need to establish a sexed semen laboratory in Ireland. The benefits of sexed semen for both the beef and dairy herds cannot be ignored and both need success on this as a matter of urgency.

Carcase trimming: penalties issued but Department not giving names

In our front-page story this week, Phelim O’Neill has uncovered how the Department of Agriculture is imposing fines on beef processors found to be in breach of carcase trim regulations.

The number of factories found to be in breach is largely irrelevant as the current inspection process does not provide adequate oversight. Therefore, the prevalence of over-trimming could be significantly higher than the Department’s figures indicate. But perhaps the bigger issue is the lack of transparency.

It is not credible for the Department of Agriculture to collect a penalty from processors who are found to be in breach of regulations while refusing to tell the farmer who was penalised. It is an easy issue to solve – if the will exists at Department and industry level to be transparent.

There is no reason an image of every beef and sheep carcase could not be taken to ensure grading and trim regulations are being adhered to. These could be monitored and reviewed retrospectively to provide a much more robust oversight process. To be of real value, a commitment to publish noncompliance rates for each processor and inform individual farmers affected would be required.

The current process is clearly flawed. If there is no problem, no one should have an issue with increased transparency.

Sugar beet: is restarting the beet sector viable?

Over the next three weeks, our agribusiness team will look at the viability of restarting the sugar beet industry in Ireland.

As Beet Ireland, the company behind the bid to restart the industry, continues its series of meetings with farmers, the opportunity and potential pitfalls need to be examined.

The sugar beet industry has a long history in Ireland. In past incarnations it was backed by the Government as it supported jobs in a young economy.

This time around, it will have to stand on its own two feet and compete in a global market. It is worth noting that sugar beet was once worth €75m annually to Irish farmers.

In order for Beet Ireland’s proposals to get off the ground, farmers will need to show commitment. After all, without a raw material, there is no business.

BDGP: increased profit thanks to better genetics

In the social-media age, it is easy for the view of the vocal minority to drown out the silent majority. The risk is that a minority viewpoint becomes the benchmark against which policies and schemes are assessed and future direction is determined.

The Beef Data and Genomics Programme is a good example. Like every scheme, improvements could be made. However, this week we carry a Focus supplement detailing the farmers shortlisted for the FBD €uro-Star €200 herd competition.

The scheme has positively affected these farms and has helped increase profitability through better genetics.

It’s great to see a group of pedigree and commercial farmers committed to the future of the sector.

Brexit: IFA backs UK farming unions over Brexit

It is heartening to see farm organisations come together with the best interests of farmers at heart to back the draft Brexit agreement between the European Union and the United Kingdom.

It is clear that the no-deal or cliff-edge Brexit next March would leave Irish and British farmers in a very vulnerable position.

IFA president Joe Healy this week endorsed a strong statement by the presidents of the four farming unions in the UK supporting the withdrawal agreement.