| Monaghan IFA Dairy Committee Chairman Seamus Brennan has said that on the day the first May Fonterra auction showed a stable trend (-0.1% overall, and +2.7% for SMP prices), the IDB butter/SMP index for April had also remained unchanged at a gross 37.8c/l for 3.3% protein and 3.6% fat milk. “Stability in dairy returns at relatively high levels at the beginning of one of the flushest production peaks Ireland has ever experienced meant co-ops would be making substantial money over and above the 31.5c/l + VAT most of them were paying farmers.” He urged all co-op board members, most of whom are dairy farmers themselves, to examine closely at their next meeting the scope to return stronger prices to farmers for May milk, with an increase of at least 1.5c/l fully justified. “The Fonterra auction, where trade deals for up to January, 2012 were struck, is showing stability generally, and small growth for SMP prices. Furthermore, all industry experts speak of 2011 as a year of reasonably high, and relatively stable dairy prices. This is because robust demand from importing regions such as China and Russia, which remain short of dairy products to meet their needs, is more than adequate to absorb the significant increases in global milk production,” Seamus Brennan said. “Friesland Campina have this week already announced an increase in their guaranteed May milk price by €2/100kgs, which is roughly equivalent to 2c/litre, to 38c/kg, which for an Irish litre of 3.3% protein and 3.6% butterfat milk is equivalent to 34.5c,” he said. “With additional stock, excellent weather conditions and no immediate threat of superlevy, Irish milk production is motoring on, delivering massively increased quantities of milk to co-ops at a time when markets still return a strong price for most dairy products, with most spot quotes for commodity combinations returning between 37 and 40c/l,” he added. “There is clear scope for a milk price increase of 1.5c/l for April, and I urge all co-op board members to challenge their management teams at the next board meeting, and deliver this price increase to their fellow-milk producers,” he concluded. JOBS INITIATIVE MUST SUPPORT PRIMARY AGRICULTURE AND THE AGRI-FOOD SECTOR IFA President John Bryan has stated that the Government’s upcoming ‘Jobs Initiative’ must support primary agriculture and the labour-intensive agri-food sector. Mr Bryan stated, “Export figures for early 2011 show that, as with 2010, the agri-food and drinks sector is outperforming the general economy. While exports have risen by 6% in the first two months of the year, food and drink exports have increased by 18%. He continued, “The primary sector can best be supported through the farm schemes, which drive production and support farm incomes. Farming is the economic backbone of rural towns and villages and increased output at farmgate level underpins the creation of jobs in the processing, marketing, tourism and retail industries.” IFA has identified further initiatives that will increase competitiveness and introduce additional opportunities for job creation at farm level and in the agri-food sector: Reduction of the lower PRSI rate and reform of the ERO/ REA system to reduce employment costs, restore competitiveness and increase agricultural employment, particularly in the labour intensive horticulture, pigmeat and poultry sectors. Development of a National Mobilisation programme for the forestry sector, requiring an annual afforestation programme of 15,000 hectares; increased funding to support construction of essential forest road infrastructure; support for the adoption of more suitable harvesting equipment for small-scale forestry; and enhanced training for forest owners. Investment in Graduate Training programmes for the agri-food sector - identified as an industry requirement in the Forfas publication on the Future Skills Requirements of the Food and Beverage Sector. Investment in renewable energy programmes, including creation of a dedicated Green Energy Unit to coordinate stakeholder delivery of renewable energy targets, publication of a coherent bioenergy roadmap, provision of sustainable REFIT tariffs and introduction of a Biomass Public Procurement policy. |
Sunday, 08 May 2011 15:14