This article is from page 40 of the 2008-07-08 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 40 JPG
THE possibility of expansion in the milk sector could be made very dif- ficult for Clare farmers if a proposal discussed at last week’s European dairy farmers meeting in Strasbourg iS passed.
The proposal involves instigating a moratorium on milk quotas as a means of building up milk prices across the EU. This proposal was put forward by the Deputy President of ICMSA and Chairman of its Dairy Committee, John O’Leary.
O’Leary argued that a milk price of 43c/litre has been set by the member associations of the dairy farmers’ as-
sociation, the European Milk Board, as the rate necessary to provide for increased costs and fund a viable family farm income.
“It is vital that the Irish dairy in- dustry does not sleepwalk itself over a price cliff. The present level of on-farm investment by farmers will never be recouped by sales at world prices, or by prices approaching that level,” he said.
‘The deep and detailed analysis be- ing presented at the three-day Stras- bourg conference by fellow Europe- an farmers is in stark contrast to the kind of third-hand, casual observa- tion and chat that is brought forward as research in Ireland.
“The research we’re having pre- sented to us here points to an unmis- takeable conclusion on the question of increasing quota and trying to achieve a specific price.
“Irish farmers are queuing up to outbid each other on the quota in- crease they desire and it is rapidly becoming clear that this is not only ill-advised but but quite reckless.”
O’Leary said the moratorium should be introduced even if it means ‘pulling’ the future direction of the milk quota off the agenda at the cur- rent Health Check discussions.
‘Unlimited production scope is not possible if we are to achieve 43 c/litre and build our sector and our incomes
on a solid and rational basis.”
“The ICMSA therefore believes that Ireland should now seek a mora- tor1um on any further quota increas- es until the European dairy markets have absorbed the current produc- tion increases and there is a return to higher and sustainable milk prices that can measured, verified, and most importantly, maintained.
“The challenge to Minister Smith is not expansion for the sake of expan- sion, but expansion in a manner that rewards adequately the investments and expertise of the people who are the bedrock of the whole industry and who are the starting point for everything else.”