Milk quota exchange ‘utter madness’
Dairy Committee chairperson Dominic Cronin said it is obvious the price of milk quota will have to fall substantially in 2005 in order to protect the income position of active producers going forward.
“A milk quota exchange will not deliver a reduced price but would, in fact, work towards achieving the exact opposite. It will drive the price of milk quota up to the disadvantage of active committed producers, who are already facing a very uncertain future,” he said.
Mr Cronin said the idea of a milk quota exchange is not feasible and any proposal that will lead to an increased price of quota must be rejected.
Active committed dairy producers are not looking for a quota exchange. They want to purchase milk quota at a price that reflects the economics of milk production, he said.
Meanwhile, dairy co-ops in the northern region agreed at a meeting in Cavan with ICMSA president Pat O’Rourke presiding, that Minister Mary Coughlan should implement a three-year programme for quota restructuring.
Co-ops maintained that this approach was necessary to give certainty to farmers and to provide a basis for proper planning.
It was stressed that the programme should be based on the restructuring scheme and that the price of quota must be substantially reduced, with a formula being put in place for the next three years that can set the price for quota based on milk price movement over this period.
