Milk quota transfers cut
Substantially reduced milk quota transfers, particularly into the restructuring scheme, are predicted by IFA National Dairy Committee Chairman Michael Murphy.
He predicts that farmers looking to expand will have to depend heavily on gallonage coming available from inactive quota holders who had temporary leased out quota for the allowed three years.
“Many farmers who had already made up their mind to give up production in the next couple of years are now likely to hold on until March 2004 before selling their quota, so as to establish their reference for dairy premium payments,” he revealed.
“I fear that most of the measures proposed to maximise milk quota in the restructuring scheme will prove ineffectual in 2003, in view of the expected implications of the Mid Term Review proposals,” he warned.
ICMSA deputy president Jackie Cahill has warned that the CAP reform may significantly reduce the value of milk quotas after March 31, 2004.
Minister Joe Walsh and the dairy industry would be acting recklessly to increase the price of milk quota at this stage. he said.
“What is required now is debate and detailed examination of the allocation of quota under the restructuring scheme, the amount of which will increase enormously after April 1, 2004.”
“The Minister should immediately set the price for restructuring in 2003-2004, based on the unanimous recommendation of the Milk Quota Review Group, which was that there be no change in the price from last year,” said Mr Cahill.
He said even before the major changes coming from Brussels, there was no justification to increase the price of milk quota.
