Agriculture in Northern Ireland can meet its climate change targets while still maintaining current levels of food output.
This was one of the key messages communicated by Ulster Bank’s agriculture manager, Cormac McKervey on the second day of Balmoral Show 2024.
According to McKervey: “Efficiency will drive down carbon footprint levels while, at the same time, delivering improved profit margins for individual farm businesses.
“It’s a win-win scenario, which can also allow farm businesses to maintain current output values.
“There is a sustainable future for agriculture in Northern Ireland, one which does not involve a reduction in cow and livestock numbers.”
The Ulster Bank representative confirmed that ruminant agriculture does have a large carbon footprint, in relative terms: “New technologies are delivering major benefits in this regard.
“Carbon dioxide and methane levels are reducing. The current climate change targets will be met – farmers are open to change.”
Meanwhile, the finances of agriculture in Northern Ireland remain in a pretty healthy state at the present time -despite the pressures posed by the exceptionally wet weather of the past 12 months.
Bank borrowings are currently standing at £973 million, with money on deposit amounting to £611 million.
McKervey further explained: “Merchant credit is probably in the region of £250 million at the present time – the amount of money taken out to finance machinery and other related items is unknown.
“However, the fact that the bank borrowing figure has remained below the one billion pound level for the past two years is highly significant.”
Food output
McKervey said that all sectors of agriculture are performing reasonably well at the present time.
“The milk price has improved over recent months, to the stage where farmers have reached a breakeven point within their businesses,” he added.
There is a prospect of dairy markets strengthening further over the coming months.
“The very poor weather has resulted in the spring flush of milk not materialising this year. Dairy markets are very much supply: demand driven.”
According to the agricultural bank manager, the poor weather conditions have increased efficiency levels being achieved by milk producers.
“The sustained use of sexed semen is helping to produce excellent quality replacement heifers on dairy farms.
“We are also seeing tremendous improvements in the quality of the beef coming from the milk sector,” he explained.
Significantly, the Ulster Bank representative foresees the beef and lamb sectors remaining very sustainable over the coming months.
“Beef prices look set to remain strong throughout 2024. And this will help to sustain turnover levels on both finishing and sucker farms.
“The same can also be said for sheep prices. The only concern here would be the possible impact of lamb imports from New Zealand and Australia coming on to the British market later in the year.”