Case study 1: Less than 80 cows
John is milking 60 cows. His son, Mark, is coming home from college and, together, they plan to milk 120 cows. Presuming they are currently producing 300,000l annually, they can now expand by 10% per year from their peak reference year. Prior to Monday’s change they could have milked 74 cows by 2024, the supposed last year of the restrictions.
After the changes announced this week they can now grow at 10% per year until they reach 400,000l and grow at 5% until they reach 550,000l and then grow at 2.5% compound growth thereafter.
Based on this faster growth trajectory, they can milk 84 cows by 2024 which is an increase of 10 cows compared to the Glanbia restrictions as first announced.