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Opportunities beckon in Ireland with dairy growth

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The Emerald Isle holds many grass-growing similarities to New Zealand, with a rapidly advancing sector drawing much from here. A recent NZ Trade and Enterprise (NZTE) seminar highlighted some of the opportunities going for NZ agri-tech firms in Ireland. Richard Rennie reports.
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Alex Gowen | February 10, 2021 from GlobalHQ on Vimeo.

Any image of a ‘quaint’ Irish dairy sector that is some rustic replica of what NZ’s behemoth industry once was needs to be discarded after the rapid advances made by that country’s farmers in recent years.

The removal of Common Agricultural Policy (CAP) quotas in 2015 signalled a new dawn for Ireland’s 18,000 dairy farmers.

The process has presented opportunities not only for Kiwi farmers to learn some new tricks, but for NZ companies to look at a growing 1.55 million cow market for new opportunities.

A report from NZTE released late last year highlighted the many strong links that exist between the two country’s dairy sectors. This is not only at a research level, but also industry, with firms like Gallagher, LIC and Waikato Milking Systems well established there.

Farmer to farmer links are also strong, including a recently established farmer-led pasture summit programme.

NZ’s first resident ambassador to Ireland Brad Burgess says the 1980s reforms and EU quotas held down Irish herd size, while at the same time NZ’s was doubling.

But since the CAP reforms the Irish dairy sector has made up for lost time, he says.

Dairy farms are now five times larger than the average pastoral farm, twice as profitable than that average and four to six times more profitable than sheep and beef equivalents.

“But that growth is also creating some of the same issues that NZ has about sustainability, policy and welfare issues,” Burgess said.

Ireland’s agri-strategy to 2030 has moved beyond scale to incorporate wellbeing, consumer expectations and climate change.

Both countries share a similar greenhouse gas profile and have hopes pinned on some sort of free trade post-Brexit deal in the future.

NZTE’s agri-business lead for Ireland Alex Gowan says there is a race on to “measure to manage” productivity per cow and environmental challenges, with data capture and management a big area of opportunity.

“If farmers can increase effective farm resource management, it is a major plus. Farmers are making significant investment in infrastructure, including pasture itself. Irish farmers converting to dairying look to be increasing, including family farms,” Gowan said.

He cited Mosgiel’s Techion FECPAK on-farm diagnostic kit for evaluation of parasite levels in livestock as an ideal example of tech that is helping farmers get more information that helps them lift livestock productivity.

Waikato Milking Systems European sales manager Gillian Fullerton-Smith says cow numbers have gone up 40% in recent years in Ireland.

“But many herds have doubled in size, up from 200-250 to 500, and they don’t have the infrastructure to deal with it,” Fullerton-Smith said.

Typically in Ireland today, a large farm is any with more than 200 cows.

The lifting of EU quotas has aided this, but so have changes in tax laws allowing previously underutilised land to be leased for productive farming has increased opportunities.

“They are looking for technology to enable them to milk a large number of cows efficiently, without much labour, which is also a problem there,” she said.

She sees the Irish trajectory heading towards more growth, while NZ’s is tending to flatten.

LIC has enjoyed a 20-year relationship with the Irish industry.

LIC general manager for Europe Mark Ryder says many dairy farms are making the transition from having a component of beef production in their businesses, to all dairy.

That transition means when the company speaks to Irish dairy farmers, it is very similar to talking to Kiwi farmers.

However, he cautions companies entering the Irish market about taking a “one size fits all” approach to their new market.

“Ireland is not NZ. We may bang on about what we do in NZ. But the first thing you have to do is tailor your approach to Ireland. There are many similarities, but you risk coming across as arrogant and burning bridges,” Ryder.

Fullerton-Smith agreed it was important to have empathy with Irish farmers, accepting the things keeping them awake at night may not be what keeps Kiwi farmers up.

In the case of picking up new technology, that often involved a nervous “leap of faith” into tech, which could be assuaged by having access to good technical support.

“You cannot be arrogant about that sort of stuff.”

David Kirby, of software company Figured, says personal connections were very strong in Ireland, and not to be underestimated.

“You can blot your copy book very easily and early on,” Kirby said.

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