Bord Bainne boss outlines the world market for dairy products and a need for Ireland diversfiy food production.
Joseph McGough the general manager of Bord Bainne discusses the challenges facing the Irish Dairy Board.
In 1962, 325 million gallons of milk were produced in Ireland. That figure rose to 525 million gallons in 1968. Domestic consumption is set at 200 million gallons meaning that anything beyond this goes to the export market. On world dairy markets too, surpluses are also growing.
In the EEC countries alone, at this moment, there are 380,000 tonnes of butter in stock.
By January 1970, there will be over half a million tonnes of butter stocks in the EEC. New Zealand holds butter stocks of 60,000 tonnes. The problem is exacerbated when the cost of storing butter is taken into account. There are losses involved in the production of butter. Common market countries are paying £750 a tonne to produce butter and earning as little as £75 a tonne for it in some markets.
Joseph McGough emphasises the need for research and development in dairy production. This will help dairy producers to diversify and create products that are in greater demand to absorb at least some of the enormous butter surplus.
This episode of 'On The Land White Tide' was broadcast on 28 October 1969. The reporter is Michael Viney.
