Mar 02, 2010

ICMSA lash Department's 'ridiculous' bias in quota allocation

Commenting on the announcement by the Minister for Agriculture, Fisheries and Food of yet further support for new entrants to dairying, Mr. Pat McCormack, Chairperson of ICMSA's Dairy Committee, said that he was very disappointed that the Minister had decided to continue with a policy of discrimination against existing small scale milk producers who are already struggling badly due to the deregulation of the dairy market so enthusiastically supported by the same Minister.

Mr McCormack pointed out that about 40 percent of Irish dairy farmers have a milk quota of less than 200,000 litres and the only access to free quota these farmers have is through the Milk Quota Appeals Tribunal Hardship Scheme, which typically gives an allocation of 5,000 litres. At the same time, the Minister has introduced a scheme where new entrants can get an allocation of 200,000 litres free of charge - a 40 times multiple of the amount existing dairy farmers with quotas less than 200,000 litres typically qualify for. Another example of the bias towards existing small scale producers is evident where a young farmer takes over the farm with 100,000 litres of milk quota but is not eligible for this scheme whereas a neighbour with a similar land holding and with no previous involvement in dairying is eligible to apply for 200,000 litres of free milk quota.

"How is this fair? Why can't the existing milk suppliers with small quotas be eligible to apply? Why is there such a blatantly unfair bias in favour of new entrants over existing milk suppliers?" asked Mr. McCormack.

The ICMSA proposal is that all farmers under 200,000 litres – whether existing producers or new entrants - would have had the option to apply for this scheme with the decision about the allocation of the quota to be based on the merits of the application. This system, according to ICMSA, would be fairer on all and would provide an equal opportunity as opposed to the Minister's present stance which Mr McCormack described as the Minister telling existing small scale milk producers who wish to expand that they have to buy quota while new entrants are given it for free.   

"ICMSA considers this policy to be indefensible and we repeat our conviction that the Department would be much better advised devoting their energies to developing a sustainable policy that will generate a reasonable milk price and keep existing producers in the business than continuing with this flagrant bias aimed at enticing new entrants to a diary sector that cannot even give existing milk suppliers a half decent livelihood. This is ridiculous", stated Mr McCormack.

Ends.       2 March 2010.

  Pat McCormack, 087-7608958

Chairman, ICMSA Dairy Committee

Or

Cathal MacCarthy, 087-6168758

ICMSA Press Office

BACK TO NEWS