End to quota system predicted
He said these reductions will impact on cheese and other products and, without alternative strategies, these will put pressure on milk prices.
However, he said that with continued efficiencies from farm to factory, innovation and a clear focus on the customer these challenges should be good news for the Irish industry and farmers.
“International consumer demand for cheese, dairy products and dairy based food ingredients is predicted to grow significantly which presents an opportunity for Ireland if we get our strategy right. Access to the US and other new growth markets is also essential,” he said.
Mr Moloney added that the future profitability of the Irish dairy industry would be determined by its ability to evaluate the current trade environment in respect of WTO and the CAP mid term review.
IFA dairy committee chairman Michael Murphy urged all co-ops to put central independent milk testing on the agenda of their next board meeting for immediate action.
He said the incomes of milk producers, after CAP reform, will be more dependent on markets, and margins will be tight. It will be even more critical for farmers to have full confidence in the test results on the basis of which they are paid.
Mr Murphy said milk purchasers co-operating in the setting up of a genuinely independent milk testing system would give a strong positive signal and be one of the first steps towards a more efficient industry.
