Dairy Expansion Costs Unrealistic
IRELAND - Following presentations at the ICOS National Conference Irish Farmers' Association (IFA) President John Bryan said any expansion of dairy production as set out in the Food Harvest 2020 report must not impose disproportionate costs on producers, who will have more than enough to do to finance expansion at farm level.
27 October 2010
2 minute read
Mr Bryan said the 30 cent per litre cost estimated at the Conference to provide facilities is massively excessive. IFA estimate that the processing and other off-farm investment required based on recent investment carried in the north east should not exceed a quarter of that figure.
In putting down a clear marker, John Bryan said farmers cannot be asked to carry the off-farm cost of the expansion. “A combination of profits from plc companies and co-ops, Government support from Enterprise Ireland, low-cost loans and tax incentives have to be put on the table before any extra cost is imposed on farmers.”
IFA National Dairy Chairman Kevin Kiersey said: “Planning for a sustainable and profitable dairy production expansion will require a cohesive, well co-ordinated approach among all industry stakeholders and the Government. Before producing more milk, we need to know where we will sell it profitably, ensure we process it most efficiently, and secure a legal and fiscal environment conducive to this expansion.”
“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 concluded.
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