"Volatility wouldn't be a reason not to go into dairy farming" according to Tirlán's chair, John Murphy.

The co-op launched a new Generational Renewal Programme, backed by a €15 million support package yesterday (Thursday, October 2).

Speaking to Agriland at Kildalton College yesterday Murphy said that the recent drop in milk price should not deter new entrants who want to go into dairy farming.

Murphy added: "Volatility is part of the business, in dairy as we all know, and all commodities whether it is oil, beef, or dairy.

The Tirlán chair acknowledged that there is never a good time for a downcycle.

But he said currently as the country comes into the back end of the season there are lower volumes of milk, combined with higher volumes of milk solids.

This paired with seasonality schemes makes it the least impactful time of year to be in a downcycle.

Murphy believes that over the last year there has been good upcycle, for dairy farmers and is hopeful with the early timing of this downcycle, prices will have turn positive again by next year's peak milk.

Murphy was adamant yesterday that dairy is an excellent business to be in, but he believes it is vital that the next generation is waiting in the wings to step forward.

The chair of the Kilkenny-based co-op said: "I was student myself here in Kildalton 40 years ago, the energy, the passion, and the ambition was prominent then."

He said that level of enthusiasm is still evident but he also believes it is important to channel it back into the dairy business.

Murphy understands that there is an issue for some older generation farmers when it comes to passing over the family farm but this, he said, is not new.

"It has traditionally being an issue in rural Ireland," he added.

However, he hopes that the launch of Tirlán's new support programme will start a conversation about passing down farms, especially for those who may be slow to hand over.

Murphy pointed out that there are now a variety of mechanisms to help pass a farm to a successor, whether it be a partnership or a company.

The Tirlán chair said one key element that could make this easier is to ensure that older farmers have "security" for their future - this, he believes, will make them more comfortable in their decision to hand over the farm.