Survey finds that milk quota policy doesn’t need too much stirring
Most farmers are aware that without the milk quota regime, they would have been far worse off.
The past 20 years have, overall, been relatively good for dairy farmers. Medium scale and small dairy farmers are aware of how the quota policy has protected their interests. It may not have delivered all they would have desired, but the alternative might leave them facing world prices.
Naturally, as dairy farmers moved up the scale of production, they would prefer more flexible quota movement, which would make life easier for them, in their bid to increase output. But only a very small minority believed they could openly and confidently face world market competition and prices.
It will be just as difficult in future to balance the quota policy requirements of producers small and large. There are compelling reasons why large scale, very committed dairy producers should have the opportunity to develop and expand, in order to keep pace with rising costs and maintain their income. They are the backbone of the industry, in terms of production.
But, if the ethos of the family farm is to be preserved, priority treatment is necessary for those who cannot compete in an open market to acquire additional quota.
Very many of these farmers are producing milk as efficiently as any large scale producer, but their scale of production limits the availability of money for re-investment.
The survey was a worthwhile undertaking for the IFA. It confirmed the majority view among farmers, which was not necessarily the view that was always expressed at policy making level in IFA.
It can be concluded from the survey that some tweaking of quota policy is necessary, to streamline quota allocation guidelines. But, broadly speaking, the direction taken by the Minister and the Milk Quota Review Group which advises him has met with a high level of approval and should not be altered very much.
Milk quotas are in place until 2006, and it is more likely than not, given the success of the regime over almost 20 years, that some form of quota regulation on milk production will be maintained by the EU beyond the expiry date of the current regime.
