Why has Northern Ireland dairy farming recorded such expansion?
Some of the main factors, which have contributed to the increase in output at farm level are given below. These may provide an explanation as to how expansion has taken place and pointers for those considering expansion in future years. • A milk quota regime in the United Kingdom allowing quota trading. • The availability of milk quota from mainland UK with farmers ceasing production. • Positive encouragement from milk processors to increase output. • Expansion funded out of farm profits. • Favourable borrowing terms from several sources of finance. • Economics of scale for the best use of on-farm resources. • Land prices limiting increase in farm size, dictating increased output per cow. • Availability of “grazeable acres” within easy access of the milking parlour. • Milk Price / Meal Price Ratio improving the economics of meal feeding. • Competitive costs of alternative compared to grazed grass. • Dairy cows genetics. • The cost of marginal litres of production. • Flexible and adapta
