1. Ireland’s Dairy Sector Poised for Growth Presentation to Conaprole Dairy Conference, XXX, Uruguy, October 12the Professor Gerry Boyle, Director Teagasc, Agriculture and Food Development Authority Ireland

2. Outline of presentation
A little about Teagasc
A little about the Irish agricultural economy
The Irish dairy industry in growth mode
Factors underpinning growth
Constraints on growth
Teagasc Presentation Footer

3. Teagasc Teagasc – Pronounced “Chawg-ask” means “instruction”
Teagasc – The Irish Agriculture and Food Development Authority – research, advisory and education
Annual expenditure €180 m. and 1200 total staff – 70% State grant
240 researchers Ph.D. studentes; 65 subject-matter specialists ; 65 teachers; 250 advisory; 7 research centres; 51 advisory offices and 7 colleges

4. Some structural features of Irish agriculture
140,000 farmers
Avg farm 33 ha
81% pasture
Onions 0.043%

6. Irish dairy product mix
16% of global infant formula market

7. Rapid change on Irish dairy farms
Year
Milk Production ( mill. lts.)
Cow Numbers
(million)
Milk Yield/cow (lts.)
Fat %
Protein%
1984
5,422
1.549
3,811
3.51
3.27
2007/09 (govt. baseline)
4,932
1.005
4,469
3.81
3.33
2014
5,651
1.192
4,740
3.99
3.43
2015
6,399
1.295
4,938
4.03
3.50
2016
6,674
1,347
4,956
4.08
3.46
2020*
7,600
1.466
5,190
4.16
3.54
* Projected

8. Teagasc Presentation Footer

9. Dairying returns the highest income to Irish farmers

11. KPIs of the average, top 20% , bottom 20% of Irish dairy farms
Net margin (€/ha)
1,165
2,126
278
Stocking rate (LU/ha)
1.93
2.23
1.69
Concentrates (kg/cow)
926
800
1,091
Days grazing (days)
242
255
229
Kg MS/cow
402
432
365
Total costs (€/kg MS)
(cent/l)
3.03
23.4
2.48
19.3
3.78
28.9
Net margin (€/kg MS)
1.37
10.7
2.06
16.0
0.51
3.9
Milk Solids kg/Ha
887
1,019
774
Grass utilised kg/ha
7,796
9,378
6,359

12. Teagasc research : from farm to gut

13. Integrating production and processing research
Animal & Grassland Programme
Food Programme
Quality & Safety
Pasture
Animal
Breeding
Milk Chemistry
Sustainable
Systems
Research Staff
Research Staff
Processing 

14. Innovation the key to growing export markets
Technologies to extend shelf life to reach far away Markets
SMART ingredients – nutritional base for foodstuffs elsewhere in the world beyond the UK market
Cheese diversification, e.g.,
Cheese for China
World-leading expertise in quality / safety, e.g., Beef and Dairy - reassure new buyers in new markets.
Leading Analytical Capabilities
Cross-Cultural Sensory Studies

15. Discussion Groups as a technology transfer tool
Discussion groups are a key methodology to transfer new technology
Increase adoption of technology and management practices
Evaluation shows increased financial benefits €9,600 for a 40 hectare dairy farm (€240 x 40) or about 3c/litre
Survey results show that farmers join groups primarily to learn and gain information
Discussion groups are a valuable peer to peer learning environment
The benefits of group membership need to be continually highlighted to overcome one to one culture

16. Ireland’s grass-based dairy production model
productive ryegrass/
clover swards
compact seasonal calving high EBI dairy cattle
Model ideal for the post quota environment
Profitable
Competitive
Replicable
Resilient
Sustainable
But there’s big scope for improvement …
skilled
agronomic management

17. The way forward: relentless focus on improving adoption of ‘best practice’
Dairy Farms 2015
Practice adoption (%)
Advisory
Contact
Non-Advisory
Milk Recording 48 21 AI 86 69
Genomically selected bull 54 37
Herd Plus 65 35
e-Profit monitor 9
Regular soil testing (last 5 yrs) 83 67
Re-seeding (2015) 51
Farm grass cover 26
GPS/GIS devices (fertiliser spread. etc.) 10 5
Technical recording devices (collars etc.) 6
Heat detection devices (electronic) 4

18. Evolution of the EBI

19. Big improvment in fertility through genetics
Phenotypic
If we follow the last 4 year’s genetic trend in fertility, by the year 2020 the fertility of Irish females born in 2020 will be what it was in 1989 (which still was below optimum) but we’ll have seen a 60% increase in milk solids.
The yellow box is the results from the next generation herd to show that genetics can achieve good performance

20. Next Generation Herd- 2013 - 2016
Next generation herd
National average
Milk yield (kg/cow)
5,499
5,704
MS (kg)
448
442
Protein (%)
3.75
3.58
SCC (‘000 cells/ml)
108
126
3 Week Sub. Rate (%) 92 86
Preg. 1st Serv. (%) 60 46
Preg. 6 weeks (%) 73 58
In Calf Rate 12 weeks (%) 81
Mean BCS
2.94
2.77
Mature LWT (kg)
560
570

21. “Big data”

22. Milk SSC (1/2) Dairy Practice Adoption: Source: NFS
Practice Adoption and Impact Targets – KPI Trends

23. Grass Utilisation Dairy Practice Adoption:
Target: Increase by 0.5t DM/ha year on year
Source: NFS
Practice Adoption and Impact Targets – KPI Trends

24. Economic Breeding Index
Dairy Practice Adoption:
Economic Breeding Index
Target: Increase EBI by €10 per cow per year.
*2016 figure shown uses old EBI base. All cows scaled back by €71 EBI as of September 2016 base change.
Source: ICBF
Practice Adoption and Impact Targets – KPI Trends

26. NO3-N concentration in groundwater (mg/l)
Increasing stocking rate/output can be compatible with good environmental performance in a pasture-based system
4.0
6.0
8.0
10.0
12.0
14.0
16.0 1
1.1
1.2
1.3
1.4
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
NO3-N concentration in groundwater (mg/l)
Fat plus protein production (t/ha)
Year
Fat plus protein
Groundwater NO3-N
SR (cows/ha)
2.4
2.6
2.7
2.9
Conc (kg/cow)
741
716
645
636
1202
590
617
288
450
430
N fertilizer (kg/ha)
294
289
296
331
259
313
244
248
252
249