ICOS wants quota price reductions

The co-ops umbrella body ICOS has announced it supports a three-year quota price reduction from 75cpg to 25cpg and simplified categories.

President Donal Cashman confirmed the ICOS board and dairy committee have carried out an assessment of milk- quota restructuring needs taking account of the potential impact of the Luxembourg Milk Reforms

They concluded that the restructuring scheme needs to deliver increased volumes of quota at prices which will underpin the incomes of active producers.

ICOS proposes that the restructuring price for 2005 should be set at 75cpg, and future prices decline substantially to 40cpg in 2006 and 25cpg in 2007. It will be asking Minister for Agriculture and Food Mary Coughlan to announce a minimum of a two-year restructuring scheme.

ICOS also proposes that simplified categories with two bands should apply to next year’s scheme divided by 350,000 litres of quota (77,000 gallons) with a 2:1 ratio for producers below and above 350,000 litres respectively.

It supports the young farmer 25% restructuring pool allocation and it proposes the age limit be increased from 35 to 45 years as well as proposing the off-farm income limit for partnerships should be increased from €24,000 to €50,000.

The board of ICOS has also confirmed that it supports the continuation of ring-fencing of quotas.

Mr Cashman also said the ICOS board has reviewed the possibility that next year’s restructuring scheme include an exchange or market system for 30% of the restructured quota on a co-op basis.