Coveney warns dairy farmers not to exceed quota levels

SOME dairy farmers are predicting that they will have exceeded their quota by September, according to Agriculture Minister Simon Coveney.

He has urged farmers to heed EU warnings that no leeway will be allowed on milk quota regulations prior to the scrapping of the quota regime in 2015.

Some farmers predict they will be over quota by September, notably in Co Cork, which had instances of farmers going 60,000 to 80,000 gallons over in the quota year to March 31.

Irish Farmers Association president John Bryan said recently that Dairygold and Glanbia are warning some suppliers not to expect any payment for milk from July onwards, by which time they will have exceeded their quota for the full year.

Currently attending a gathering of EU ministers in Brussels, Mr Coveney said France and Germany remain resistant to any calls for a “soft landing” prior to 2015. He is part of a group lobbying for a more relaxed approach, but the signals thus far are not positive.

Mr Coveney said: “The message to farmers is simple — don’t produce too much milk or you could be facing a superlevy fine that could put you out of business.

“I spoke to one farmer who told me he’ll be out of quota by September.

“Some people are being very blase about the superlevy just because we narrowly avoided it this March. These fines come to tens of thousands of euro.”

Denmark, the Netherlands and Luxembourg share Ireland’s view that the quota regime should be phased out to take account of dairy farmers increasing their stocking levels. However, the French and German hardline seems increasingly likely to win out.

In the EU’s 27-year quota history, Ireland has been hit with 14 superlevy fines, at a cost to date of €117 million, with individual fines ranging from €10,000 to €50,000 or more.

Meanwhile, Mr Coveney is more hopeful of a positive outcome in the Mercosur talks, wherein EU beef farmers may yet be protected against cheap imports from South America, where beef producers face less environmental and traceability regulations.

Mr Coveney and his French counterpart, Bruno Le Maire, have issued joint statements insisting that the EU should not trade away farmers’ livelihoods to gain access to South American markets.

“Ireland is very reliant on its beef exports,” said Mr Coveney . “I am being very forceful in defending the interests of Irish beef farmers in the EU’s trade talks with the Mercosur countries.

“In terms of climate change and the sector’s carbon footprint, it makes no sense to produce an excellent quality, highly regulated product in Europe and then import beef from South America. I am very anxious that farmers’ interests are not ignored in these trade negotiations.”