Abolition of ‘ring fencing’ opposed at ICMSA meeting
At the meeting, organised by the ICMSA to assess the views of the industry on dairy policy, clarity was demanded of the Minister for Agriculture on the future of milk quotas, and the pricing of restructured quota.
Representatives of dairy processors south of a line from Dublin to Galway, including the country's most intensive milk producing regions, attended the meeting, which was chaired by the ICMSA president, Pat O'Rourke.
Mr O'Rourke said: "We are demanding that the Minister for Agriculture immediately announces, for a three-year period, what the milk quota restructuring price is going to be."
"We find it unacceptable, and it is creating greater uncertainty in the industry, that the minister has not accepted the recommendation of the milk quota review group that the price should remain the same as this year".
"It was also agreed that there should be no increase in the price of restructured quota for the 2003-2004 year, and that there should be no differential between the co-op areas," Mr O'Rourke said.
He said there was discussion as to how co-operatives in the south, which are unable to get significant volumes of restructuring milk quota, should be treated.
"They felt that, even if the price of milk quota under the scheme was to be increased, it would not result in getting enough milk quota into the scheme, in these areas of the country, to satisfy the demand.2
"That is something which we are going to have to look at to see how this can be resolved," he said.
Mr O'Rourke said there was support at the meeting for the retention of 'ring fencing' on milk quota, which is the stated policy of the ICMSA.
"We are open to respond to the needs of our members, and we suggest that Teagasc should look at how more quota could be made available to dairy farmers in these regions of the country," Mr O'Rourke said.
The ICMSA president said he accepted that the Minister for Agriculture, Joe Walsh, TD, had indicated his intention welcomed by young farmers, in particular of reducing the cost of milk quota, but he said that the vacuum which remained in the absence of a forward policy was creating uncertainty among farmers.
The price of milk quota in the restructuring scheme has continued to fall, and low interest rates have also come into play to assist farmers, but these factors will only benefit farmers if they can plan ahead.
A guideline of the minister's intentions was required, he said.
While co-operative representatives from west Cork emphasised the need for change in the 'ring fencing' of milk quota, the reaction from other areas, including Limerick, Kerry and other parts of Cork, was that they did not want changes in 'ring fencing', because it would devastate particular regions, and put a question mark over dairy production in parts of the country.
Mr O'Rourke said: "Nevertheless, we do need to see how the problem can be resolved".
