Macra: Existing milk quota should form basis of future supply ‘licence’

Existing milk quota held by farmers as of March 2015 should form the basis of their future “licence” to supply their co-operative, according to 10 principles to guide post-quota expansion proposed by Macra na Feirme.

In a bid to incentive succession, the tenets in the Macra na Feirme Dairy Policy suggest new entrants and recent small scale producers with less than 300,000 litres be given priority to additional milk sought by any co-ops with spare capacity, at no cost. Existing suppliers should be offered additional “license” at no cost, on a pro rata basis.

Macra president Alan Jagoe launched the dairy policy, which details the relationship between farmers and co-operatives following the abolition of the milk quota.

The policy document is the result of detailed consultation with Macra members on the orderly expansion of the dairy sector.

Mr Jagoe said: “Macra is committed to supporting the sustainable growth of the Irish dairy sector. We are calling upon Irish farmers and their co-operatives to embrace these fundamental principles as the basis for a framework for the supply of milk in a post-quota era. Dairy farmers should also look favourably upon contributing to the investment needs of their co-operatives in prepar-ation for a post-quota era.”

Based on its novel “licence” concept, Macra’s 10 principles also include guidance on farm partnerships, license transfers, a company-based farming model and force majeure provisions to ensure that suppliers be given the opportunity to remedy the impact of unforeseen circumstances on their co-op supply arrangements.

Macra’s dairy policy can be found in the download section of its website: www.macra.ie.