| IFA President John Bryan said, “There is real enthusiasm and potential among dairy farmers to increase milk production. But to transform this enthusiasm into realistic and sustainable levels of profitable milk production increases, we need some serious joined up thinking within the sector, especially between co-ops and Teagasc.” John Bryan identified 5 main areas where rapid, co-ordinated and determined action is needed: 1. The processing sector must come forward with a detailed plan outlining the additional capacity required to meet the expected extra production for their region, fully costed out, and setting out how it is to be financed. Farmers cannot be asked to contribute anything until such time as optimum utilisation of existing processing capacity has been fully secured. Neither can industry expansion costs be imposed on farmers, while national production remains restricted by quotas. Thereafter, the banks, Government and dairy Plc and co-op profits must play a key part in the funding of any additional processing capacity. 2. Teagasc and co-ops will now have to agree a common milk supply pattern that maximises profits on farm while optimising capacity utilisation, including off-peak. 3. Teagasc must also significantly improve their dissemination of efficiency advice as currently only the top 1/3 of farmers are benefiting. All dairy farmers must challenge Teagasc to deliver the maximum efficiency on their farms. 4. The Irish Dairy Board must come forward with a clear road map, identifying the markets that must be targeted, and sending clear instructions to processors on what products to focus on. 5. Government has a massive part to play, having set out the ambitious Food Harvest 2020 50% dairy expansion target, and embraced the food export sector as a major asset to help with the recovery of the Irish economy. Government must come forward with environmental and climate change-related legislation which does not restrict expansion. They must ensure that farmers can continue to avail of the nitrates derogation, and can expand their facilities in a tax-efficient manner. At EU level, Government will have to do more to secure a “softer landing” before the end of the quota regime in 2015. “The dairy sector has tremendous potential to deliver greatly increased revenue and added value in the Irish economy, while securing viable incomes for farmers. However, the profitable expansion ambitions we all share for the sector can only be delivered through a single-minded, co-ordinated approach by all operators from industry, advisory services, the Irish Dairy Board, Government, banks, farm organisations, and, let’s not forget, dairy farmers themselves,” he said. “As President of IFA, and with the support of the IFA National Dairy Committee, I am totally committed to playing the fullest part in promoting the required joined-up approach in every way I possibly can,” he concluded. |
Thursday, 21 October 2010 10:04