Minister accused of undermining re-structuring scheme
Dominic Cronin, Chairman of ICMSA’s Dairy Committee said there has been a complete halt to restructuring, due exclusively to the Minister’s statement made at the Fianna Fáil Agriculture Conference.
Mr Cronin said a quota exchange could add €40 million annually to dairy farmers’ costs. “I am amazed that the Department, which is constantly telling farmers to cut costs, has come forward with a proposal that will increase farmer costs substantially”.
The Minister suggested a more open quota transfer market at co-op level could be organised through an exchange system, through direct sales between individuals, through brokers/agents, or via marts.
“Quota may be sold with or without land and leased with land and a variety of partnership options will be allowed” she said.
“The new system will be introduced on April 1, 2007, after the current Restructuring Scheme has ended”, she confirmed.
“We will start now preparing the detailed arrangements for what will lead to a more market based approach to transfer of quotas, with the aim of achieving the type of structure that will best contribute to more competitive milk production in Ireland. There is sufficient time to allow for this new system to be developed in consultation with the industry and with the co-operation of all concerned within the sector”.
She said her aims include freeing up movement of quota to committed producers, which would benefit the cost of production and assembly. “At present, less than 4% of milk is restructured annually and there appears to be little incentive to encourage quota transfer. It is essential that willing producers be afforded a better incentive so that quota policy can contribute to greater consolidation of holdings and improve the level of profitability. Equally we should attempt to meet the needs of those who wish to exit the sector”.
Earlier, she emphasised the need for further dairy industry rationalisation. “At producer level too, we cannot remain static, nor be complacent. Many stakeholders have the view that the restructuring system as it now operates will not meet future needs of the industry. It is clear to me that progressive dairy farmers recognise that in order to maintain a viable income from dairy enterprises they will have to increase efficiency and enlarge their holdings.
