Seminars highlight quota worries

THE lack of milk quota availability has been identified as the most significant barrier to expansion in dairying.

However, dairy farmers were deemed to have a good future.

At Glanbia seminars in Kilkenny, Waterford and Kildare this week, Professor Gerry Boyle of the National University of Ireland in Maynooth, presented policy options to increase quotas for commercial dairy farmers.

These included a co-op-based, free markets for quotas, as well as the introduction of a modified quota exchange scheme and a Government-funded scheme to top up the fixed price.

Glanbia has confirmed that Professor Boyle’s draft recommendations are to go to its representative structures for debate in coming weeks.

Scale consideration was also emphasised by Dr Fiona Thorne from Teagasc, who presented the findings of a study on the relative returns from dairying in various countries.

She said that land productivity for average sized Irish farms declined from 1996 to 2003, but overall Irish farmers are very competitive on a cash cost basis - with one of the lowest costs per unit of production.

Dr Thorne said large Irish farms will be more competitive in the longer term and that as average size increases, we will be better able to cope with a cost price squeeze.

Hans Bender of the Danish Dairy Board presented a dairy market forecast, recognising that while in the short term the average European farmers will continue to suffer income losses, in the longer term he predicted structural development and the stabilisation of milk price.

John Moloney, Glanbia group managing director, said there is a good future for efficient and flexible dairy suppliers.

He said Glanbia is making solid strategic and operational progress based on taking strong measures on costs, productivity and market positioning.

“We will also continue to support our suppliers to ensure a viable milk supply. Glanbia will be introducing a new farm development programme this spring and we will also be developing our quota policy, based on the work of Professor Boyle.

“Glanbia will not be found wanting in this regard. However, quota restructuring is fundamentally a decision for the Minister for Agriculture and Food,” he said.