Cahill defends ICMSA’s ‘keep quotas’ policy
In the Irish Examiner Farming forum held during last Saturday’s National Dairy Show, ICMSA president Jackie Cahill defended the association’s “keep milk quotas” policy, and their membership of the European Milk Board (EMB). He said this year’s €800 million of EU support for milk prices wouldn’t have been forthcoming for the unlimited milk supply which is likely after 2015, when quotas are abolished.
The likelihood of the milk price settling at 25c also makes the case for supply management, he said.
Mr Cahill referred to the recent EU Court of Auditors recommendation that milk supply control continue, and said EMB supply management proposals are designed to enable EU dairy farmers quickly respond to demand for milk.
ICMSA opposes farmer-processor contracts guided by the futures market, currently being discussed at EU level.
Mr Cahill demanded a block on further quota increases, and production control in line with demand — or up to 7% of dairy farmers would be bankrupted, he warned.
However, IFA dairy chairman and presidential candidate Richard Kennedy told the forum there is no reason to believe milk quotas will not go in 2015.
He said low milk prices are due to global market trends, not EU quota decisions, and said returning to quotas and market support and full import tariffs was not realistic.
Instead, he called for processing industry consolidation in Ireland during the current window of opportunity of poor markets and prices; a more favourable EU world trade negotiating stance; and an end to abuse of retailer power. Strongly financed rapid EU market support which can smooth price volatility without exposure to speculators is also part of the IFA policy.
Meanwhile, 2009 has left Irish dairy farm families 7c/l in the red, but rapid dairy market improvements are now helping.
According to Mr Kennedy, all co-ops must respond, with a 2c/l September milk price increase to reflect EU and global market improvement, and boost farmer confidence after the most severe farm income crisis in a generation.
