I.C.M.S.A TELL EUROPEAN FARMERS THAT AN IMMEDIATE MORATORIUM ON QUOTA EXPANSION IS REQUIRED

The deputy president of ICMSA and Chairman of its Dairy Committee, John O’Leary, told a conference of European dairy farmers meeting in Strasbourg today that a moratorium on quota expansion is required immediately if the milk price sought by their union is to be achieved.

Mr. O’Leary noted that a milk price of 43c/litre has been set by the member associations of the dairy farmers’ association, the European Milk Board, as the rate necessary to provide for increased costs and fund a viable family farm income.

The ICMSA man described the price demand as “a sharp and proper policy focus” and he said that there is a growing realisation that the increase in quotas will lead to the eventual abolition of any quota system and force European milk prices down to world levels. According to Mr. O’Leary, this will happen with or without a WTO deal on tariff reductions.

“It is vital that the Irish dairy industry 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. The deep and detailed analysis being presented at the three-day Strasbourg conference by fellow European farmers makes a stark contrast with the kind of third-hand, casual observation and chat that is brought forward as research in Ireland.

"And the research we’re having presented to us here points to an unmistakable 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 increase they desire and it is rapidly becoming apparent that this is not alone ill-advised but actually amounts to recklessness”, stated Mr. O’Leary.

“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. ICMSA therefore believes that Ireland should now seek a moratorium on any further quota increases until the European dairy markets have absorbed the current production increases and there is a return to higher and sustainable milk prices that can measured, verified, and most importantly, maintained”, he continued.

Mr. 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 current ‘Health Check’ discussions.

“The challenge to Minister Smith is not expansion for the sake of expansion, 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”, he concluded.

IRISH DAIRY BOARD PRICE INCREASE MUST END 2008 MILK PRICE CUTS

IFA national dairy committee chairman Richard Kennedy has said that the announcement by the Irish Dairy Board of increases in the butter and SMP prices they pay to co-ops, must end milk price cuts for all co-ops, and must lead Glanbia and Kerry to immediately rescind their premature and ill-judged June milk price cuts.

He added that this latest development, and the ongoing positive market trends, meant that the IFA 34c/l + VAT average milk price target remained realistic for 2008.

Focussing on the aftermath of the Dungarvan Glanbia suppliers’ meeting recently, in which over 500 farmers from Cork and Waterford demanded that Glanbia, Ireland’s top dairy company, pay the top milk price in 2008, Richard Kennedy added:

“I am advised that the board of Glanbia have accepted that they need to do something about milk prices. They are due to put forward proposals in the coming days, and I expect at the very least this will include the rescinding of the 1.5c/l June cut. IFA will be examining those proposals carefully, before deciding what further action to take in our milk price campaign.”

He added that Glanbia, as well as Kerry, the only two milk purchasers to have jumped the gun on milk prices for June, now had no option but to rescind their premature, and ill-judged June cuts, as the backdated IDB price increase was clear evidence of much improved commodity returns.

“The Irish Dairy Board have announced they would pay co-ops, from 1st July, an extra €200/t for SMP, of which €150 backdated to 1st June, and €100/t for butter. This is a reflection of the rising commodity prices on European markets, which IFA has been reporting. The IDB increase puts the June value of their index up 1.5c/l and its current value up by 2.2c/l, both compared to the pre-1st June 29.6c/l index,” Richard Kennedy said.

“Farmers supplying Glanbia and Kerry are fully justified in demanding that their co-ops rescind their respective 1.5c/l and 2c/l unjustified June milk price cuts,” he added.

“I note that, prior to the Irish Dairy Board announcement, many co-ops had been talking of markets having “bottomed out”, which means that, with continued improvement, our target of an average 2008 price of 34c/l + VAT remains realistic, and must be adopted by all milk purchasers,” he concluded.

I.C.S.A.- SHEEP FARMERS CANNOT PLAN UNTIL AYLWARD IS IMPLEMENTED

ICSA sheep chairman Mervyn Sunderland has warned the EU and the Irish government to implement the Aylward report before farmers start planning their breeding season.

“It’s about the time now when farmers start deciding whether to keep their breeding stock or cull it. The Aylward report recommended a number of key deliverables to help secure the sheep sector, such as the sheep welfare scheme, and farmers need to know that this scheme and other recommendations will be implemented before they make final decisions,” said Mr. Sunderland.

“Going on this year’s paltry lamb prices, it is clear that the authorities will need to move quickly if they are to avoid further substantial culling of breeding stock.”