'Future bright' for dairy farms
Published Date:
15 October 2008
By Richard Halloran
One of South Africa's leading dairy farmers has told Farming Life that international milk production has a viable future but it is one that will be built on the attainment of increasing efficiency
levels.
"In our case this will also mean increasing herd size and making greater use of technology," added Nigel Lok, who is in Northern Ireland to assess local milk production systems.
He also spoke at a dairy conference in Armagh earlier this week. Nigel manages 700 cows, currently averaging 7200 litres at 4.0% butterfat, on a pasture based system in South Africa's Eastern Cape. His plan is to increase cow numbers by an additional 100 over the next two to three years.
"The market will dictate how the milk industry evolves. Markets are cyclical in nature. However there is now growing evidence that, in future, the peaks and troughs will become significantly more intense. That's why it is so important for farmers to have as much control as possible over their own costs of production and their own levels of efficiency," he stressed.
"In South Africa the farming industry receives absolutely no support from government whatsoever. At the present time we are receiving 18 pence per litre for milk.
"It's a reasonable price but not good enough to keep the smaller man milking. Last year 500 farmers left the South African dairy industry. However, the slack created has been taken up by those bigger herdowners, who remain totally committed to expanding their businesses.
"The fundamentals for milk production moving forward remain strong. Dairy consumption trends look set to increase and the growing economies of China, India and other Asian countries means that the consumer spending power will be available to fund this growth.
"But the international dairy industry faces one key challenge: attracting large numbers of well qualified young people to commit to a future in milk production. The cost of setting up a new dairy unit in South Africa is currently in the region of £2300 per cow placement.
"This represents a lot of money for any young person setting out on a new career. And I know the equivalent figures are significantly higher again here in Northern Ireland. But without new blood coming in, all industries will run into major difficulties. And, to be honest, the dairy sector cannot rely on father-to-son succession meeting this re-quirement on an ongoing basis."
The full article contains 404 words and appears in n/a newspaper.
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Last Updated:
15 October 2008 8:46 AM
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Source:
n/a
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Location:
belfast