No benefits for young dairy farmers in milk quota increase
The long overdue milk profitability boost in 2007 gave fresh impetus to dairy farming. Milk has become the new white gold of farming, so the quota licence to produce milk has become a preciously guarded possession. If Irish farmers had the 2% already, they could save €10m-€15m which they are likely to pay in penalties for over-production up to April 1, when the 2% increase kicks in. However, the 2% still won’t have a dramatic impact for the majority of Irish dairy farmers this year or next, meaning very little on each farm when distributed nationally.
Ms Coughlan’s decision to allocate it across the board to all existing milk quota holders raises the question of where Government policy on quotas is heading. Macra na Feirme is unhappy no special provision has been made for young farmers. It would have been a prudent provision, given the stiff challenge facing any young farmer. Macra leader Catherine Buckley is correct when she says dairy farming is a young person’s game, and the industry needs young blood.
ICMSA favoured a flat rate allocation across all dairy farmers, worth about 1,000 gallons per farm on average. The equivalent of less than one additional cow per farm, that would have favoured the smaller producers.
However, the minister’s decision, which will allocate more milk to larger producers, avoids priorities or preferences for any group, and departs from existing policies which tended to reallocate the national milk quota.
