A report reveals how outdated TB compensation ceilings in Ireland are costing dairy farmers thousands, threatening the financial health of the agribusiness sector.
The Costly Flaw in Ireland's Dairy Compensation

Outdated TB compensation ceilings are costing farmers thousands, a critical threat to agribusiness viability.

A major concern is brewing in the Irish agribusiness sector, where a report by the Irish Cattle and Sheep Farmers’ Association (ICSA) highlights a critical flaw in the current bovine tuberculosis (TB) compensation scheme. The article reveals that due to “outdated” TB compensation ceilings set in February 2023, farmers are losing thousands of euros when their cattle are culled. This issue is a significant piece of data journalism, underscoring the urgent need for a policy review to ensure fair compensation and protect the economic health of the dairy industry.

The core problem, the article explains, is that the compensation limits do not reflect the current market reality. Despite a steady increase in beef prices, the compensation for a pedigree cow lost to TB is capped at €5,000, which is well below the actual market value of some animals in 2025. This disparity means that even after an independent valuer inspects the animals, the farmer is not being paid the full current market value for the lost asset, creating a significant and unfair financial burden.

This situation has a direct and negative impact on dairy economics. The process, as detailed in the article, involves the Department of Agriculture, Food and the Marine (DAFM) subtracting the salvage value of the animal before paying the farmer the remainder, all subject to the outdated ceiling. The ICSA’s argument is clear: farmers should be paid the true market value of their animals to avoid taking a major financial hit. This highlights a disconnect between the policy and the on-the-ground economic realities faced by producers.

While the DAFM has stated that a financial working group of the TB Forum was established to review the financial modeling of the TB Eradication Program, the article also notes that program expenditure has risen to over €100 million in 2024. The DAFM’s focus is on reducing the levels of the disease, which would in turn lower the program’s cost. However, the current compensation limits remain a point of contention that directly affects the farmers’ livelihoods and puts the sustainability of the food supply chain at risk.

Ultimately, the article serves as a powerful call to action for policy reform. It is a reminder to the international dairy industry that effective biosecurity programs must be paired with fair and equitable compensation mechanisms. Without a system that fully values a farmer’s assets, the economic viability of the entire sector is compromised, making it harder to manage disease outbreaks and maintain a stable and profitable agribusiness model.

Source: Agriland, “Outdated TB compensation ceilings costing farmers thousands — ICSA

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