IFA wants to free up quota transfer
It is part of an IFA strategy to achieve the national average industrial wage or better for dairy farmers.
"Dairying is a full-time occupation and, to attract skilled people, must have an earning capacity of at least €30,000 a year. To achieve this will require a herd size of 90 cows efficiently managed with tight cost control", said Mr Berkery.
However, today's average herd size of 42 cows poses a serious challenge for the country's 27,000 dairy farmers, because the majority could not achieve anything like the industrial wage.
"It would be offensive to farmers if I attempted to be prescriptive about who has a future in milk or who has not, but what I clearly want to do is provide options, including the option to give up milk production", said Mr Berkery.
"In the IFA, we have already proposed to bring forward decoupling of the dairy compensation to 2005. This would allow farmers who want to leave milk production retain the decoupled payment and sell out their quota."
Mr Berkery said a substantial number of farmers for family circumstances, age and other reasons would be happy to sell their quota if they got a reasonable deal.
"We are actively pursuing a new mechanism to free up quota transfer. We want to accommodate those who can expand and enlarge their operation to maintain viability".
"This strategy for change must come about sooner rather than later. The longer we procrastinate, the weaker the Irish dairy industry will be, going forward, in what Fischler describes as market orientated conditions."
He said the role of Teagasc will be critical on the dairy industry's long and painful road to CAP Reform.
"What was previously a profitable sector with strong market management and quota must now cope with the post-Luxembourg reality, and ongoing cost increases will further erode income."
For IFA, he said, life will have to change as well. While it will continue a major role and strong presence in Brussels, the importance of Brussels in pricing matters for farm produce will diminish rapidly.
This week, ICMSA President, Pat O'Rourke said he was shocked at Agriculture Minister Joe Walsh's "attempts to allow a quota free-for-all". He warned that a free-for-all would increase the cost of quota.
