Dairy Industry Ireland (DII), the body that represents dairy processors, has said it cannot support a dairy exit scheme.
On June 23, stakeholders on the Food Vision Dairy Group, including DII as well as farm organisations, were invited to make a submission in response to consultation to examine the feasibility of a scheme to reduce the number of dairy cows in the country.
Such a scheme has been referred to as a dairy exit scheme (as it would result in some dairy farmers exiting dairying), and, by some stakeholders, as a cow cull scheme.
At the time the consultation opened, some stakeholders were willing to consider the idea of a scheme, pending its details, terms and conditions, and other factors (although Macra was strongly opposed to the scheme from the outset).
It was revealed this week that the Irish Co-operative Organisation Society (ICOS) – representing dairy co-ops – had decided not to support the scheme. DII, representing processing businesses, has come to the same conclusions, after considering the factors currently at play.
In its submission document, the Ibec group outlined several reasons for its stance, including a lack of detail on a potential scheme, which, DII said, prevented it from considering it properly.
The scheme would have be consistent with the policy objectives of the state and the industry, and further detail would be required to confirm this, DII said.
E.g., the submission points to recent comments by the Minister of Finance and the Irish Fiscal Advisory Council, which stated that Ireland is overly dependent on tax revenues from foreign companies with operations here, and that Ireland’s own indigenous industries should be promoted.
Furthermore, DII said that further clarity would also be needed on the government’s national land use policy, which is not yet finalised.
The industry body also questioned why there would be a reduction scheme for the dairy sector only and not the entire bovine herd.
This follows the wide rejection of a proposed suckler cow reduction scheme by stakeholders on the Food Vision Beef and Sheep Group, which has resulted in Minister for Agriculture, Food and the Marine Charlie McConalogue ruling out such a scheme for suckler farmers.
The DII submission also reiterated a concern over carbon leakage, i.e., that a reduction in dairy output in Ireland would lead to an increase in production in countries and regions with “multiples of the Irish dairy emissions and water footprint”.
DII also pointed to the level of investment that processors have made to cater for post-quota milk volumes. Its submission claimed that there is a case for compensation for processors if milk output reduces due to an exit scheme or other restraints on production, such as the Nitrates Directive.
On the economic front, DII pointed to the economic and social impact such a scheme would be likely to have.
The industry body claimed that a 10% herd reduction would be “the equivalent of a brand new National Children’s Hospital taken out of rural Ireland each and every year”.
DII called on the Department of Agriculture, Food and the Marine to be “clear on the impact of any reduction scheme”.
Furthermore, DII said that, regardless of a reduction scheme, dairy cow numbers may already be on a downward trend (based on Central Statistics Office data), claiming that the narrative that cattle numbers are growing in Ireland “is a complete trope”.
Other reasons for saying no to a cow reduction scheme, according to DII, include:
- Reduced innovation – a reduction in production leading to a reduction in demand and investment for research and development;
- Loss of expertise – less dairy production would result in less expertise in grassland management, animal husbandry, milk processing, and marketing;
- Administrative burden – a cow reduction scheme would likely involve high levels of administrative work and cost;
- Retirement and succession – DII claimed that it would be a better use of taxpayers’ money to “augment” ongoing emissions reduction by supporting generational renewal (a point already made by Macra).
DII said that it would continue to “be positive about working constructively with proposals on a whole of government and whole of sector approach” to reducing emissions.
To that end, DII outlined a number of recommendations, including:
- Development of an implementation plan by the dairy industry for reducing emissions;
- Development of a “common charter” with ICOS for sustainable milk production based on the family farm model;
- Reconvening Dairy Sustainability Ireland with Bord Bia and the department;
- Working with government to roll out methane inhibiting technology;
- Supporting the new Teagasc Marginal Abatement Cost Curve (MACC).