Any bid at EU level to restrict dairy output must be resisted, warns IFA
Its president, John Bryan, speaking at Virginia Show in Co Cavan, said critical issues are down for decision at a major debate on the future of dairying, organised by the European Commission in Brussels next month.
The outcome cannot derail the opportunities for Irish dairy farmers to expand when quotas are abolished after 2015, he said.
Mr Bryan said market supports must be retained and there can be no movement away from the decision to get rid of quotas in two years.
The Government must look to other member states for support for Ireland’s position and build alliances against the proposals to restrict output put forward by the French rapporteur in the European Parliament, Michel Dantin.
Mr Bryan said farmers have a positive outlook and a strong commitment to develop their farm, but plan to do this prudently.
Volatility of milk prices and input costs are among the challenges. On the volatility issue, solutions will have to be developed to help farmers manage a more variable income. These may include tax-related options and an increased prevalence of fixed-price contracts from milk purchasers.
“It is, of course, essential that banks recognise the reality of volatile farmers’ incomes, and step in to provide better financing solutions for cashflow as well as investment,” he said.
IFA dairy committee chairman Kevin Kiersey called for continued firm commodity prices to underpin the sustainability of Irish producer prices.
Mr Kiersey said the outlook for global dairy markets for the rest of 2013 augurs well for the sustainability of producer milk prices of around 38c/l for several months at least. “I urge co-ops to signal this to their suppliers to boost their confidence and help them deal with outstanding input bills,” he said.
Speaking at the same show, Agriculture Minister Simon Coveney said the new Common Agricultural Policy (CAP) is marked by three major advances: Greater emphasis on environmental sustainability, new and enhanced supports for young farmers, and the phasing out of production quotas.
He said the changes mark a useful and progressive reform of the CAP, making it fit for purpose to 2020. “The changes also are consistent with the smart, green, growth objectives of Food Harvest 2020,” he said.
The Virginia show is in its 72nd year, and features over 470 competition classes ranging from livestock to garden produce and home industries.
Praising all the local primary producers and farm businesses, Mr Coveney said they are the foundation of the drive to increase exports from the agri-food sector in the years ahead.
He said the annual Diageo Baileys Champion Cow Competition, held in conjunction with Glanbia Ingredients Ireland, is a highlight of the show.
Pedigree breeders have prepared for months for this prestigious competition.
The production of Baileys from milk supplied from 1,500 carefully selected family farms is a phenomenal success story, he said.
Mr Coveney said the unique partnership between industry and Government, working through Food Harvest 2020, aims to increase the value of exports from the agri-food sector to €12bn by that year.
“Ireland is extending its market reach in a range of product areas, with direct benefits to farm families in regions such as the north-east,” he said.
Mr Coveney said the staging of the show was a massive community effort.
