FARM FOCUS Issue 87 – June 2024
TIME TO ACT TO RETAIN IRELAND'S NITRATES DEROGATION
An Infrastructure, Climate and Nature Fund is being established for use after 2026 to support State expenditure on certain environmental projects including water quality. Why wait? Now is the time to bring this forward and deploy it. Resilient performance in 2023
In the midst of a challenging year on so many fronts, the performance of the Co-op was quite resilient in 2023. While revenues reduced by 17% and profits were back by 5%, our core net debt was reduced from €234 million in 2022 to €155 million last year, the lowest level in a decade. A strong Coop enables us to support our farmers through the challenging times, as seen in the recent €34 million weather-support package. Our Co-op is well set for the future 2024 has delivered one of the wettest springs in recent memory. It has caused a significant level of hardship and challenge on farms. Yet, even throughout the recent wet weather the standout issue discussed at meetings and our recent Tirlán Co-op AGM is the future of Ireland’s Nitrates Derogation. Swift and significant action at all levels across the State, including on our farms, is now imperative as we have less than 18 months to prove that we can farm at 220kgs of nitrogen per hectare and protect our water quality. Tirlán has been extensively highlighting the requirement for a Government-supported national action plan and taskforce to put the best case forward to retain the Derogation. Our recently-launched ‘Farming for Water: River Slaney Project’ featured inside this issue showcases how determined we are as a farmer-owned, farmer-focused co-operative in this regard. The collaborative project targeting the River Slaney catchment area in counties Wexford, Carlow, and Wicklow is intended as a template for the rest of the country. It is great to see Ministerial support for a whole of Government approach for a national retention action plan, and to see other Co-ops also taking action to highlight the importance of water quality. National Biomethane Strategy
Our farmers have shown time and time again that they are willing to play their part with more than 95% of suppliers now taking part in the Sustainability Action Payment programme. They have shown significant capacity to adapt and innovate throughout the eras from the post-quota evolution to our new more moderate growth phase moving towards more diversified incomes on farm. However, clear policy guidance and support is vital for this transition. Now is the time for the Government to deliver upon its National Biomethane Strategy to develop an indigenous biomethane sector, including increased slurry and digestate capacity on-farm.
This is my final Farm Focus message to you. As I prepare to step down from my role as CEO, and hand over to Seán Molloy, I’m delighted to say the future of our great Co-op is positive. I have thoroughly enjoyed my time working with our organisation and our suppliers. The performance of our organisation in a challenging year reflects the underlying strengths of the business. This is testament to our excellent community of farmer suppliers and our talented and dedicated workforce. We’ve developed a world-class network of high-spec facilities with an increased focus on R&D. We continued to make good progress towards delivering on our strategy with the commissioning of our Kilkenny Cheese manufacturing facility at Belview which is bringing continental cheese varieties to new markets. Tirlán is well set towards future investment with our €210 million Investment Fund for the benefit of our Members and our investment in Glanbia plc worth €1.3 billion. I am confident that our organisation is in the best possible position to avail of the opportunities and to meet the challenges of the future. Over my 40 year career, I can say that I’ve enjoyed many highlights, none more so than returning our Co-op and our processing assets into full 100% farmer ownership. Our Co-op now has one set of shareholders and is aligned on our purpose of delivering the best possible returns to our farmers. I’ve enjoyed meeting all of our suppliers and shareholders, and in many instances, being challenged to ensure our organisation delivers to the best of its ability. Sincere thanks for the many courtesies I have experienced over the years and for placing your trust in my leadership for the last 18 years. I wish Seán and the team all the best and look forward to seeing you in the future. Le gach dea-ghuí,
We have seen from other countries that a successful biomethane sector will require farmers to almost double their current storage capacity on farm. It is vital therefore that capital support structures are put in place now to aid the expansion of storage capacity which will help deliver the Biomethane Strategy and protect water quality. In addition to retaining Ireland’s Nitrates Derogation, this will enable farmers to play an important role in achieving the country’s biomethane targets and assist in meeting its climate commitments.
Jim Bergin CEO, Tirlán
ALSO IN THIS ISSUE 2
Markets Update
7
Reseeding using Tirlán Mastercrop
3
Tirlán delivers robust 2023 performance
8
June Milk Quality
4
Launch of River Slaney Project
9
Teagasc Tirlán Future Farm Programme
5
New charity partnership with Aware
11
Calf growth and health at grass
6
Opening of Tirlán CountryLife in Fethard
12
Animal Health Reminders