Rowing back on quota hikes under CAP important for dairy sector

ROWING back on the European Union quota increases under the Common Agricultural Policy health check is not a solution to improving milk prices, as presented by the Irish Creamery Milk Suppliers Association, it was claimed yesterday.

Macra na Feirme president Michael Gowing said current quota increases are not linked to the low milk prices as Ireland and the EU is under quota. He said the European Commission’s recent announcement not to make changes to the yearly increases to the quota system agreed under the CAP health check is important.

Any change in this policy will only return a value on milk quota and be detrimental to youth, something the industry cannot afford.

“The real issue for the medium- to long-term is getting new entrants into the industry and the retention of production controls in the form of milk quotas will continue to create an obstacle for new entrants to enter, grow and expand their dairy enterprise,” he said.

“The quota system stifles progression at farm level. We need latitude to allow young farmers grow and expand their business as Europe with or without milk quotas won’t ultimately dictate the global price,” he said.

Mr Gowing said the impact of milk quota as a limiting factor to entering dairying, even in a year of historically low milk prices, was demonstrated by the interest in a new scheme to encourage new entrants to dairying introduced by Agriculture Minister Brendan Smith.

He said Macra fully supports the minister in introducing initiatives that support new entrants in the industry. Mr Gowing also welcomed Mr Smith’s statement on pushing the European Commission to increase dairy intervention and the scope and level of export refunds.

However, any move on export refunds needed to be set at such a level to create a price rise in milk as farmers are producing milk at below the cost of production.