The chief executive designate of Tirlán has warned that the co-op’s dairy farmers need “certainty and clarity” around the future of Ireland’s nitrates derogation.
Seán Molloy told Agriland that one of the biggest challenges facing dairy farmers is trying to work out how regulatory environments are going to evolve.
As a result of recent nitrates policy changes many farmers can can only stock their farm to a maximum of 220kg of organic nitrogen (N)/ha – according to Tirlán this will impact around a third of its milk suppliers.
The co-op has stressed that retention of the nitrates derogation is “crucially important” for Ireland’s grass-based family farming dairy model.
According to Molloy farmers urgently need to understand the “direction of travel” when it comes to any new regulations so that they can plan their farms accordingly.
He said feedback from their own farmers suggests that many already plan to invest in more slurry storage facilities on farm.
Molloy also believes farmers will be “encouraged by recent soundings” from parties and government in relation to derogation and the supports that farmers need.
“They’ll be much more encouraged than they would have been a year ago,” he added.
But the co-op has also indicated that it will be closely watching to see “who will be the people who will represent Ireland Inc and take the argument to Europe and negotiate” in relation to a future nitrates derogation for Ireland.
Tirlán
Tirlán published its 2023 annual report and accounts today (Tuesday, April 30) which showed that its turnover fell by 17% to €2.53 billion last year.
The Kilkenny-headquartered co-op also reported a 5% year-on-year drop in operating profits for 2023 to €68.3 million
In its annual report Tirlán said it was committed to “continuing to invest significant resources to assist farmers in addressing water quality challenges” in order to maximise Ireland’s chances of retaining the nitrates derogation beyond January 1, 2026.
The co-op recently launched its ‘Farming for Water: River Slaney Project’ and said its focus will be “ensuring water quality is protected and enhanced” within its river catchments through 2024.
Milk prices
In the latest annual report Tirlán detailed that milk supply in 2023 was back 2.7% on the previous year which the co-op said was a “reflection of the poor weather, input costs, policy uncertainty and labour challenges”.
The average price paid for milk in 2023 by Tirlan to its milk suppliers was 44c/L – significantly down on the average price in 2022 of 63c/L.
According to Molloy depending on what way milk supply goes for the rest of the year the milk price “will be in and around where we are today on base milk prices”.
“Our outlook at the moment would be described as stable,” he added.
Molloy, is currently chief ingredients and agribusiness officer and has been a director of Tirlán for the past 12 years.
He will take up the role of CEO on August 1, 2024.