The green shoots of milk price recovery are just about visible, according to the president of the Irish Creamery Milk Suppliers’ Association (ICMSA), Pat McCormack.
“But growth will be extremely slow over the coming months,” McCormack said.
“This is why we still need a form of voluntary milk reduction scheme to help strengthen markets.
“The European Commission was happy to enough to go down this road in 2015. I see no reason why they can’t look at such an option now.”
McCormack highlighted sluggish demand for dairy products as being a key reason for the slump in milk prices that has taken effect over the past nine months.
Looking ahead, McCormack urged farmers to get themselves ready for the winter.
“It’s important that farmers take every opportunity they can avail now to secure the winter fodder they need,” he said.
“Having to go out and buy silage next March may well be a very expensive option.”
The ICMSA president foresees the banks playing an active role in helping to sustain farming businesses over the coming months.
“Farmers should also seek the financial advice they need to allow them manage their businesses in the most effective way possible,” he said.
“And this includes talking to their accountants.”
Where the current nitrates measures are concerned, McCormack advised all farmers to have all their records up to date and not to run the risk of incurring penalties
Nitrates derogation
Meanwhile, ICMSA’s fight to sort out the nitrates derogation debacle continues apace.
According to Pat McCormack, the Irish government has essentially surrendered to the European Commission, where this matter is concerned.
The ICMSA leader believes that the continuation of Ireland’s 250kg of nitrogen (N)/ha derogation from the Nitrates Directive was both absolutely necessary and eminently possible.
“This was on the basis of the government showing the willingness to mount a skilful campaign, based on the evidence that is already emerging,” he said.
“No such campaign was ever mounted by this government.
“Consequently, we have had our nitrogen limits reduced to 220kg in defiance of all the evidence – economic and environmental.
“The existing 250kg limit is perfectly compatible with improving water quality while maintaining the production capacity that is so indispensable.
“Prices are falling to the extent that farmer revenue will be down by in excess of €2 billion this year.”