‘We urgently need to refocus on cost control at farm level'
Shalloo – who heads Teagasc's Animal & Grassland Research and Innovation Programme – said an analysis of CSO data shows a steep rise in agricultural input prices between 2020 and 2024.
'Since 2022, input price indices are showing reductions in costs, but input costs in 2024 were still approximately 35pc higher than 2020,' he will say.
While many of the inflationary pressures at farm level were driven by external shocks – including the Covid-19 pandemic and the war in Ukraine — Shalloo will say these were compounded by an increase in the use of purchased concentrate feed on farms.
National Farm Survey data published last week shows that purchased concentrate expenditure on dairy farms typically totalled €61,517 in 2024.
While this was actually a 5pc decrease relative to 2023 due to a fall in feed prices, feed volumes averaged 1,357kg per dairy cow in 2024, an increase compared to 2023.
Costs per unit of milk have increased by over 50pc between 2020 and 2024, while only moderate increases in costs were observed over the previous 10 years
'Costs per unit of milk have increased by over 50pc between 2020 and 2024, while only moderate increases in costs were observed over the previous 10 years,' Shalloo will state.
'These inflationary pressures, compounded by weather-related pressures in 2023 and 2024, and a loss of focus on pasture management and utilisation, have resulted in significant cost pressures at farm level – which are particularly evident when milk price is reduced, such as in 2023.
'There is an urgent requirement to refocus on cost control at farm level.'
Shalloo will highlight that grass silage and concentrate feed are three and four times more expensive, respectively, than grazed grass – making it essential for farmers to maximise the proportion of grazed grass in the dairy cow's diet to drive profitability.
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'Key to this process is increasing pasture utilisation per hectare and reducing the proportion of bought-in feed in the diet of dairy cows,' he will say.
On the environmental front, Shalloo will point to positive recent data from the EPA on water quality and emissions, noting that improvements are already being seen.
He attributes these to policy changes under the Nitrates Directive, reduced fertiliser nitrogen use on farms, a greater focus on nutrient use efficiency, and improved weather and nutrient management at farm level.
Notably, Shalloo will reveal that a forthcoming Teagasc report shows the average dairy cow in Ireland produces approximately 20pc more manure per week while housed than previously assumed.
This, he says, will require additional investment in manure storage infrastructure on many farms, but could also unlock more value from nutrients in slurry.
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