Since the start of the year we have seen numerous warnings that the growth in Ireland’s milk production is unsustainable. Some have suggested that our growth ambitions should be curtailed.

European Commissioner for Agriculture Phil Hogan has been particularly vocal in highlighting the risks that an oversupply in EU dairy markets present to global prices – a message that he has no doubt intentionally emphasised in recent months when addressing Irish audiences.

In the context of looking at percentage increases, it is understandable that attention is focusing on Ireland. Output from the sector has undergone rapid growth since the abolition of quotas in 2015, and in 2017, figures from the European Commission for January to November show Irish production growth among the highest in the EU at 9.4%. However, Ireland still only produced in the region of seven billion litres last year, ranking us seventh of the EU countries on annual milk supplied.

While accepting that in his role as commissioner Phil Hogan is right to warn of the impact an EU oversupply could have on global prices, it is not reasonable to expect the Irish dairy industry to curtail its growth ambitions on this basis.

Ireland has been shown to be one of the most efficient dairy-producing regions in the EU. In fact, Teagasc figures show that since the abolition of quotas, our competitiveness has actually increased further, as growth in production has driven down costs per kg/milk solids produced.

We have not found ourselves in this position by accident. Ireland is one of the most efficient and environmentally sustainable milk producers in the EU and the world thanks to two decades of investment in the sector, by both farmers and the State, mainly through Teagasc research.

With the creation of the ICBF, serious investment has gone into our national breeding programme and it is now delivering the best grazing genetics internationally – genetics that when combined with grazed grass are allowing farmers to have a serious influence on milk price through improved solids at a lower cost.

We created what is now recognised as one of the most efficient grass-based production models, both in terms of economic and environmental sustainability.

Nevertheless, the environmental sustainability of further growth in the dairy sector has been questioned. Comparisons have been drawn with the Netherlands and the environmental challenges it has faced in relation to increased cow numbers – particularly around phosphate levels.

However, linking the environmental challenges created by further intensifying a high-input dairy model on sandy-type soils against Ireland’s extensive grass-based model is clearly flawed. It should also be noted that with a land area similar in size to Munster, the volume of milk produced in the Netherlands is twice that of Ireland. Along with this, in the pig sector, the Dutch breeding sow population is eight times the size of ours.

The abolition of quotas in 2015 presented Irish farmers with a unique opportunity to fully capitalise on the potential of our globally competitive dairy sector – potential that was suppressed during 30 years of quotas. It should never be forgotten that the introduction of quotas came at a time when Irish farmers were only beginning to harness their potential for milk production and were growing processing capacity. Our potential was stifled then. It should not be stifled now. It’s easy for other member states to point the finger at Ireland for causing an oversupply, but we have by and large found new markets outside of Europe for this extra milk.

Of course, this does not give Irish farmers a green light to ignore market signals or disregard potential financial and practical issues with expansion. Price fluctuations will still present severe challenges to the sector and we must therefore ensure future growth does not come at the expense of undermining the resilience of the business – mainly by staying focused on the grass-based model.

Sourcing labour, managing nutrients, herd health, significant capital investment and borrowing are all real challenges for dairy farmers. Furthermore, nothing can be done to undermine the environmental and animal welfare credentials of the sector – it is in all farmers’ interests that a zero-tolerance approach be adopted on both fronts.