Macra welcomes allocation of milk quota for new entrants to dairying

A DECISION by Agriculture Minister Brendan Smith to allocate a quarter of the 1% increase in the national milk quota to new entrants to dairying has been welcomed by Macra na Feirme and criticised by the Irish Creamery Milk Suppliers Association.

Mr Smith recently announced his plans for the allocation of the second of five annual increases of 1% in milk quotas agreed under the so-called “health check” of the CAP reform.

One quarter of the increase (about 14 million litres) will be set aside to support new entrants to milk production. The balance will be allocated as a 0.75% rise in quota on a permanent, saleable basis for every producer active on April 1, 2010.

Mr Smith said a maximum of 50 successful “brand new” entrants will each receive allocations of 200,000 litres of quota. The balance of some four million litres will be divided equally between suitably qualified trading scheme applicants.

Macra na Feirme president Michael Gowing, welcoming the decision, said all new entrants to the dairy sector should be given the opportunity to apply for the scheme. The assessment committee should judge all applicants on their future viability and commitment to the dairy skills base.

However, the Irish Creamery Milk Suppliers Association dairy committee chairperson Pat McCormack said he was disappointed with the decision because it showed a blatant bias in favour of new entrants over existing milk suppliers.

He said Mr Smith had decided to continue with a policy of discrimination against existing small-scale milk producers who are struggling badly due to dairy market deregulation.

Mr McCormack said the ICMSA proposal is that all farmers under 200,000 litres, whether existing producers or new entrants, would have had the option to apply for this scheme.