ICMSA says Category 1 suppliers will face restrictions
He said it will be more difficult for Category 1 suppliers to expand and it will cost more because they are only third in priority access to the fixed pool and have no priority access to the market portion.
“It is ludicrous that if a farmer bids at 1c per gallon below the market clearing price, he or she will get absolutely no quota, and ICMSA is disappointed the Minister did not take on board our sensible proposal that farmers within 5% of the market clearing price should receive an allocation”, said Mr Cronin.
ICMSA president Jackie Cahill advised dairy farmers not to offer more than 10c a litre for milk quota. IFA dairy committee chairman Richard Kennedy welcomed the announcement of two exchanges, saying it will help sellers and buyers.
Macra president Colm Markey welcomed the minister’s announcement that up to 30% of traded quota will be set aside for young farmers at 12 cent per litre. Farmers spent over €300m on milk quota since the year 2000, and it was vital that quota prices were kept down when the milk price is falling.
