Concern over milk quota proposals
Lakeland, the State’s second largest dairy co-operative, said it has serious concerns about the “unworkable and unfair” proposals announced by Agriculture and Food Minister Mary Coughlan for the establishment of a milk quota exchange system in 2007.
Chief executive Ed Prendergast predicted that the impact of a “cheque book quota system” will be most significant in the northern and north-western regions, where farmers are significantly below the national average quota size.
“They will not be in a position to compete to buy quota and will be forced out of business in areas where they have no other viable farming choices open to them,” he said.
Mr Prendergast said the proposals will destabilise the industry and polarise milk producing communities from each other on a widespread basis with considerable antagonism and disadvantage arising between high and low priced quota regions.
He said farmers will also be sucked into bidding wars against their neighbours, leaving them with heavy debt burdens to carry against a backdrop of declining product prices and rising input prices.
Mr Prendergast said Lakeland Dairies is asking the minister to withdraw these proposals before starting a consultation process, and then re-introduce proposals that would be fair, workable and worthy of discussion among all stakeholders.
