Milk quota rise torealise €35m

A PROPOSAL announced yesterday by the European Commission to increase milk quotas across the EU by 2% from April 1 next would be worth €35 million a year in creamery cheques to Irish dairy farmers on current average prices.

The proposed increase to meet growing demand in the EU and on global markets would boost the Irish national milk pool by 100 million litres.

In a statement issued in Brussels, the Commission said the quota increase would apply on an equal basis to the 27 EU member states.

It said the increase does not prejudge the ongoing review of the dairy market in the health check of the Common Agricultural Policy (CAP), where the Commission has suggested a gradual increase in quotas before they expire on March 31, 2015.

EU Agriculture and Rural Development Commissioner Mariann Fischer Boel said CAP reform freed farmers to produce for the market and restrictive milk quotas are inconsistent with that aim.

“We have seen a sharp rise in milk prices over the past year and a growing call for higher quotas. In the coming years, demand for high value-added dairy products — particularly cheese — will continue to rise in Europe and around the world. We need to equip our farmers to meet that increased demand,” she said.

IFA dairy committee chairman Richard Kennedy said the 2% quota increase falls short of the original 3% proposal it had made last June, but it was a step in the right direction.

He said the EU should anticipate the CAP health check to allow Irish dairy farmers an opportunity to raise production while markets are strong and crying out for product.

Mr Kennedy said the quota increase must benefit all milk producers in Ireland. While few member states will fill the increased volume, the capacity does exist here to meet the increase.

Macra na Feirme president Catherine Buckley said a larger rise in quota would be more beneficial for Ireland’s dairy industry, but the proposed increase must be welcomed.

She said the rise needs to be targeted at young farmers if the real benefit to the industry is to be realised.

“Young farmers are becoming an invisible category as they now only represent 8% of the farming community. These farmers are the future lifeblood of the industry and must be supported,” she said.

Ms Buckley said a small increase in quotas for all farmers will have a negligible effect on producers whereas a targeted approach would breed new life into the industry.

“Dairying is a major player in the agricultural sector and Ireland is very well placed to compete internationally. However, if our industry is devoid of young people, what future will this important industry have?” she asked.