The Food Vision Dairy Group’s final report which will include a substantial compensation package as part of a specified exit scheme for dairy farmers, is expected to be signed off imminently, Agriland understands.
It’s believed that the report will outline a voluntary, state-funded scheme, which will detail measures that will result in a reduction of the national dairy herd.
It is understood that the exit scheme will be tailored to appeal to a certain demographic.
The report, which contains 17 recommended actions, marks the culmination of months of intense discussions and negotiations with key industry representatives, stakeholders and government officials.
Sources have indicated that agreement has finally been reached on a package of measures which will transform the dairy sector in the future.
It is believed that negotiations were drawn out as stakeholders in the group insisted on further debate around certain aspects of the report sensitive to their respective organisations.
Recent negotiations have centred on three key aspects, namely the intricacies of the exit scheme, trade restrictions and a reduction in fertiliser usage.
Previously, Macra told Agriland that it would push back against measures that would close off pathways into the dairy sector for young farmers. President, John Keane stated:
“We understand that the final report is due to be agreed in the near future and we’ll obviously continue to push our case forward for young farmers.
“It would be unthinkable from our side of things that the stakeholders would agree to close the doors on pathways for young people to enter into any sector, not just dairy.”
During government negotiations on sectoral emissions ceilings earlier in the year, it was stated in documents that a “very significant retirement package would be needed” to achieve a reduction in the suckler herd of 700,000 head. It continued:
“Assuming a value of €3,000 per suckler cow, a retirement scheme could cost more than €2 billion. The value of a dairy cow could be higher in any exit scheme.
“As an alternative split between suckler and dairy cows in achieving this quantum, based on Teagasc analysis, to maintain a suckler herd of around 250,000 cows, dairy cow numbers would need to fall by 300,000 to 1.3 million,” the department documents stated.