Co-op mergers and family farming structures are ‘vital’ for the future

Co-op mergers and maintaining family farm structures are vital to the future of European farming, Agriculture Minister Simon Coveney told his EU farming ministers at a meeting yesterday in Lithuania.

Co-op mergers and family farming structures are ‘vital’ for the future

Mr Coveney described family farms as “the heartbeat of EU farming structures”.

He expressed his strong support for the maintenance of family farms, but said he also wants the status quo to be maintained in terms of the CAP reform.

Noting there would be changes in farm structures and a greater focus on competitiveness, sustainability and innovation, he said the challenge would be to “bring family farms along with the changes needed”.

Speaking in relation to innovation on EU farms, Mr Coveney cited Ireland’s farm development discussion groups as an example of how best practice can be shared among farmers and encouraged their use in other countries.

He also cited Ireland’s successful co-op model, particularly in the dairy sector.

He noted, however, there would be a need for further economies of scale both in Ireland and through the EU, through greater co-operation and mergers of existing co-operatives.

The minister also said European farming needed more generational change. He said the reformed CAP which would contain some positive measures in this regard.

Favouring younger farmers was one of his priorities during the CAP reform talks, he said.

The minister also urged a greater focus on succession planning.

Noting the importance of the issue of access to land, the minister stressed the need for more long-term leasing, in order to give farmers greater certainty about land access and to allow them to plan on a longer-term and more sustainable basis.

The minister also commented on the importance of price and the disruptive effect of price volatility, particularly in the dairy market, and called for a greater focus on these issues and the wider use of medium-term contracts for milk supply.

He also urged a review of state aid rules to assist in the restructuring of farms, including the increased use of farm partnerships.

x

More in this section

The Business Hub

Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Cookie Policy Privacy Policy Brand Safety FAQ Help Contact Us Terms and Conditions

© Examiner Echo Group Limited