AIB agri adviser Bryan Doocey told the Carrigaline Macra conference many farmers still base their costings for buildings on the Farm Waste Management scheme that concluded in 2008.
He said there has been a significant increase in the cost of building materials since then. CSO figures show the highest increase to be sand and gravel, which have gone up 70% in that time.
Speaking to the Irish Farmers Journal after the event in the Rochestown Park Hotel in Cork on Monday, he said: “When we go to meet farmers and they want to finance a project, they are typically using costings that are 10 years out of date.
“There is no builder in the country going to charge you the same price as they did 10 years ago. All the raw materials we checked from the CSO have gone up. The highest was up to 70%. The smallest rise was 3% so it’s something farmers really need to get a handle on and get full costing before they really start because it’s something that can really run out of control.”
Dairygold
Also speaking at the event was Dairygold CEO Jim Woulfe.
In response to a question from the floor regarding the impact of expansion, he said: “As a co-op we’re responding to farmers’ plans. We’re asking what’s the ambition and responding accordingly.”
Best practice all along the supply chain is critical
He detailed the growth experienced by the co-op over the last 10 years.
“In the decade since 2008 when it was signalled that milk quotas would come to an end, Dairygold has witnessed a phenomenal period of growth. The volume of milk has risen by 65% while milk solids for suppliers of the southern co-op have increased at a faster pace by 75%. Combined fat and protein percentage of suppliers is at 7.7%.”
Jim Woulfe speaking at the conference. \ Donal O' Leary
Calves
Inevitably, calves came up in the question and answer session and Woulfe highlighted the need to rear dairy bull calves to the same standards as heifer calves.
He said: “Best practice all along the supply chain is critical. From a dairy point of view, you have to look at the male calf as well as the female.”
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AIB agri adviser Bryan Doocey told the Carrigaline Macra conference many farmers still base their costings for buildings on the Farm Waste Management scheme that concluded in 2008.
He said there has been a significant increase in the cost of building materials since then. CSO figures show the highest increase to be sand and gravel, which have gone up 70% in that time.
Speaking to the Irish Farmers Journal after the event in the Rochestown Park Hotel in Cork on Monday, he said: “When we go to meet farmers and they want to finance a project, they are typically using costings that are 10 years out of date.
“There is no builder in the country going to charge you the same price as they did 10 years ago. All the raw materials we checked from the CSO have gone up. The highest was up to 70%. The smallest rise was 3% so it’s something farmers really need to get a handle on and get full costing before they really start because it’s something that can really run out of control.”
Dairygold
Also speaking at the event was Dairygold CEO Jim Woulfe.
In response to a question from the floor regarding the impact of expansion, he said: “As a co-op we’re responding to farmers’ plans. We’re asking what’s the ambition and responding accordingly.”
Best practice all along the supply chain is critical
He detailed the growth experienced by the co-op over the last 10 years.
“In the decade since 2008 when it was signalled that milk quotas would come to an end, Dairygold has witnessed a phenomenal period of growth. The volume of milk has risen by 65% while milk solids for suppliers of the southern co-op have increased at a faster pace by 75%. Combined fat and protein percentage of suppliers is at 7.7%.”
Jim Woulfe speaking at the conference. \ Donal O' Leary
Calves
Inevitably, calves came up in the question and answer session and Woulfe highlighted the need to rear dairy bull calves to the same standards as heifer calves.
He said: “Best practice all along the supply chain is critical. From a dairy point of view, you have to look at the male calf as well as the female.”
Read more
Glanbia’s Keane talks down milk price and supply
Nuffield conference: consumer stress gap and more funding for AgriAware
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