The Irish Farmers’ Association (IFA) Dairy chair Stephen Arthur has welcomed the decision of Lakeland Dairies to withdraw the proposed Peak Milk Supply Management Scheme for New Milk.
The measure had been due to apply to both existing suppliers and new entrants from 2023 onwards.
However, the processor confirmed on Wednesday (December 14) that the proposal, which would have involved suppliers facing penalties for exceeding peak milk allocation, would not be proceeding.
Lakeland explained that the decision followed a comprehensive review of current and updated forecast milk supplies, existing processing capacity and increased investment, as well as evolving legislation.
The company also confirmed that it will continue to welcome new entrants to dairying on a continuing basis, in the south and Northern Ireland.
IFA Dairy chair Stephen Arthur said that the decision to remove the proposed scheme “is the correct one”.
“It was very disappointing to see such a scheme proposed in the first instance.
“IFA highlighted this on a number of occasions to both Lakeland Dairies management and the board. It has to be acknowledged that Lakeland took these concerns on board and abandoned the proposal,” he said.
Arthur said that if the scheme had progressed it would have “would have had an adverse impact on many family farms supplying Lakeland”.
“With all the current uncertainty in dairy farming, such as with the proposed changes to Nitrates and the Food Vision report, dairy farmers need some certainty and must be able to depend on their processors to support them.
Arthur said that this change is further evidence of the shifting dynamic in the dairy sector where expansion has now levelled off.
He said this needs to be factored into the government’s approach to the Climate Action Plan.