Retention of Production Controls is not the Solution to the Milk Price Problem
19 August 2009
Macra na Feirme national president Michael Gowing said rowing back on the EU quota increases under the CAP Health Check is not a solution to improving milk prices as is presented by the ICMSA, as current quota increases are not linked to the low milk prices as Ireland and the EU is under quota.
Mr. Gowing said the Commission's recent announcement not to make changes to the yearly increases to quota system agreed under the CAP Health Check is important, as any change in this policy will only return a value on milk quota and be detrimental to youth, something the industry cannot afford.
The real issue for the medium to long term is getting new entrants into the industry and the retention of production controls in the form of milk quotas will continue to create an obstacle for new entrants to enter, grow and expand their dairy enterprise.
The quota system stifles progression at farm level, we need latitude to allow young farmers grow and expand their business as Europe with or without milk quotas won’t ultimately dictate the global price.
The impact of milk quota as a limiting factor to entering dairying, even in a year of historically low milk prices, was demonstrated by the interest in a new scheme to encourage new entrants to dairying introduced by the Minister for Agriculture, Fisheries and Food’s this year. Mr. Gowing said Macra fully support the Minister in introducing new initiatives that support new entrants in the industry.
Mr. Gowing also welcomed Minister Smiths statement on pushing the EU Commission to increase dairy intervention and the scope and level of export refunds, however, Mr. Gowing said any move on export refunds needed to be set at such a level to create a price rise in milk as currently farmers are producing milk at below the cost of production.
