Dairy farmers reject milk quota free for all call

“DO not abolish ring fencing” was the clear message to the Milk Quota Review Group from dairy farmers around the country represented at the AGM of the ICMSA.
Dairy farmers reject milk quota free for all call

They gave an emphatic thumbs down to a milk quota 'free for all", with a majority of more than six to one rejecting a motion "that ring fencing of quotas be abolished to allow fairness to all suppliers in all parts of the country".

The motion was tabled by ICMSA branches in Gorey and New Ross in Co Wexford, and Timoleague and Clonakilty in West Cork. It was supported by speakers who claimed that ring fencing no longer serves the best interest of development in dairying, because it does not allow the allocation of milk quota to areas which can produce more milk.

But ICMSA President, Pat O'Rourke, said it was a myth that milk quota was not being fully produced in any region of the country, and he warned that free flow of quota could lead to serious problems for the viability of milk processing in some of the weaker regions, and this would not serve the industry well.

He said figures from the Department of Agriculture show that the flow of milk out of northern co-ops would not significantly increase allocations to farmers in other regions, and could be very damaging to the future of the industry in northern co-ops.

If the supply of milk quota was freed up, Category 1 suppliers would receive an average of 2,236 gallons, Category 2 would get 1,595 gallons, and Category 3 would get 1,049 gallons amounts which would not make a huge difference to larger producers in their overall scale, according to Mr O'Rourke.

Supporters of the motion argued that larger producers with the capacity and the willingness to produce more milk economically were being hamstrung by the current restrictions on movement of milk quota, and ere being forced to look to alternatives to improve their incomes. While contributions from the floor were 2 to 1 against the removal of ring fencing, when the issue was put to a vote of the meeting, the result was overwhelming, at least six to one in favour of retaining ring fencing.

The vote sends a clear message to the Milk Quota Review Group, who are under pressure to abolish the ring fencing restriction.

Recently, Agriculture Minister Joe Walsh said he favoured more quota being made available to those with the ability and the willingness to increase milk production.

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