3 Feabh 2015, 17:02
The Oireachtas Joint Committee on Agriculture, Food and the Marine has this afternoon heard marketing, producer and processor representatives in the dairy sector call for policy adjustments – in areas such as taxation, hedging and access to credit - to help farmers manage price volatility, particularly in the shorter term.
3 February 2015
However, the Committee were told of the efforts to move Irish dairy products up the value chain and that the outlook for the sector in the medium to longer terms remained strong.
Representatives from Bord Bia, the Irish Co-operative Organisation Society (ICOS) and Positive Farmers were addressing the Committee.
Committee Chairman Andrew Doyle TD says: “Having met last month with the Irish Dairy Board, this afternoon’s meeting with Bord Bia, ICOS and Positive Farmers further enhanced Committee understanding of the challenges facing the dairy sector in the shorter and longer terms. The Committee takes on board the serious concerns raised by speakers on the cash flow difficulties facing farmers in 2015. ICOS pointed out for instance that many dairy farmers are funding an expansion in their operations from cash flow, rather than from medium or long term borrowing.
“Each of the representatives before us was optimistic about the long term prospects for the industry. However, it was argued that the Irish dairy sector must look towards margin rather than volume alone. Our grass based dairy industry is well placed to move up the value chain into areas of nutrition and other high value products. Positive Farmers pointed to the potential return from investing in upskilling farmers, and suggested greater, more targeted resources in training and placements for aspiring dairy farmers.
“The Committee notes with concern the examples of New Zealand and Northern Ireland, where a significant number of farms have run into financial difficulties as a result of overexpansion. A number of Committee Members urged caution to those farmers in Ireland contemplating expansion. We take on board, too, the argument that the main banks may lack the relevant expertise in evaluating agri-business. Consequently, we look forward to raising these concerns when representatives from the banking sector appear before us at next week’s meeting.”
View Committee Membership.
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