What milk suppliers want to see in 2017
I’m a naturally positive person but I have to confess to real anxiety about the way this could unfold.
As farmers we’re hugely supportive of the EU but that doesn’t mean we can completely abdicate our own national interests, and ICMSA wants and expects to see the Irish Government really insisting that we have vital national interests — to a degree that no other member state has — and that we have every right to insist on those vital national interests being ‘front and centre’ in the Commission’s negotiations with the UK.
I know this will be made clear to the Commission through normal channels but I’d still prefer to hear our Government set out our stall in a manner that can’t be mistaken or misinterpreted by anyone.
Events occurred in our very recent history and choices were made by arms of the EU that were widely held — and by reputable commentators — to have very seriously disadvantaged Ireland.
On questions relating to allocation of debt associated with commercial bank collapses, Ireland is widely perceived to have been ‘hung out to dry’ and it is of supreme importance that Ireland’s unique position in relation to Brexit are both recognised and protected - so far as possible.
Ireland is the state most exposed to the negative fallout from the UK’s decision and Irish farming and agri-food is the most exposed sector within that context.
Our food trade with, particularly, England is centuries old and we must insist that this massive trade - already hampered by Sterling’s fall relative to the Euro — is not destroyed by tariffs.
In a brilliant analysis of the situation given to our recent AGM, former EU Ambassador to the US, John Bruton, predicted a very intense and protracted series of negotiations, possibly involving interim treaties, leading up to a final arrangement.
Whatever the shape of that final arrangement and however long it takes, Ireland will have to stand its ground and look to its own vital national interests.
We cannot allow ourselves to be put in a position where we’re asked to ‘take one for the team.’
We can’t afford it and, to be honest, the record would seem to indicate that Ireland already took ‘one for the team’.
We expect to see a 2017 milk price recovery and we want to see meaningful progress made by the Commission on the ongoing scandal of Unfair Trading Practices engaged in by food and retail corporations.
Now that the credibility and impact of the Voluntary Reduction Scheme has been established beyond doubt, ICMSA wants this added to the normal policy ‘toolbox’ and automatically triggered once milk price falls below costs of production for a set period.
The prolonged and deep price trough from which we’ve only recently emerged was made even more damaging by the complete inadequacy of the Commission’s response and the incomprehensible delay in realising the depth of the milk price fall (around 45% from peak to trough in our case) and then the prevarication we saw in introducing the Voluntary Reduction Programme which, as ICMSA was alone in pointing out, was the only supply-management tool with sufficient ‘firepower’ to give the necessary degree of certainty to the market.
ICMSA advocated the supply-reduction scheme in the face of entrenched opposition and widespread scepticism and we derive no satisfaction from being proved right on milk price yet again.
We cannot again even countenance a situation such as we have endured for the last 20-odd months where everyone from the farm gate onwards sees their dairy margins and profits increase while the dairy farmers — on whom the other elements in the food-supply chain completely rest — are wiped out.
On beef we want and will work towards the review of the Grid promised over two years ago and still not even begun despite our figures showing that it has costs farmers around €85 million since the QPS introduction.
We want to see a special unit established within the Department focused on removing each and every impediment in the way of substantially increasing live exports and we want to see farm schemes being managed and paid in a way that recognises the growing importance they represent in terms of overall farm income.
On balance you’d have to say that 2016 was a very difficult year in terms of economic sustainability and I really hope and trust that the new year will be better and easier for the farm families on whom everything — and every other level of agri-business — ultimately rests.
I’d like to wish all Irish Examiner readers a happy and healthy 2017.
