Future milk price transparency vital
Lakeland Dairies chief executive Ed Prendergast, said farmers who make the decision to stay in dairying will stretch themselves to the limit financially to buy the maximum possible volume of quota post-decoupling.
Speaking at the presentation of the co-op’s milk quality awards in Virginia, Co Cavan, he said the future price of milk quota will therefore be one of their most limiting factors.
In the absence of a known price, dairy farmers are also left wondering about their financial situation, whether they should buy quota now or later in order to expand, or should they exit now or later. That in itself is a source of unnecessary stress and uncertainty. “Various industry commentators have indicated their wish for the 2005 quota price to be set around the 70 cent a gallon mark.
“Certainly we believe that there should be scope for the minister to make an early announcement regarding quota price for 2005, for example, by setting a range in which he envisages the price will fall. This will then make decisions on their future much easier for farmers.”
Mr Prendergast said that taking the various tax allowances, decoupling compensation, modulation and inflation into account, they envisage that quota could reasonably be priced in or around the 40c mark, at no major disadvantage to quota sellers. It would give a reasonable price for the farmer."
The awards were presented by ICMSA president Pat O’Rourke and Lakeland chairman Eamon Farrelly. The overall winner was John Kearney, Inniskeen, Dundalk, Co Louth. Suppliers from Cavan, Dublin, Longford, Meath, Monaghan, Armagh, Down and Tyrone also scooped awards.
