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No limits on Irish dairy farmers as EU milk quotas expire


For the first time in more than 30 years, Irish dairy farmers will not be limited by EU milk quotas.

Minister Coveney pictured with dairy farmer Bobby Hovenden, Co. Laois ahead of the dairy quotas being lifted. ©Board Bia

The restrictions, which were set up in 1984, expired at midnight on Tuesday.

Farmers have been preparing for this day since 2008 when it was confirmed the regime would come to an end on 31 March 2015.

More than €600 million has been invested in the sector since the announcement and farmers have been breeding replacements to ensure more milking cows.

Agriculture and food development authority Teagasc estimates that 15,000 new jobs could be created over the next five years.

Ireland’s dairy production was approximately 5.4 billion litres in 2013 – roughly the same as that in 1984.

In comparison, New Zealand, which has a grass-based system similar to Ireland, has increased production from 7.6 billion litres to about 19 billion litres during the same period.

The limit on the sale of milk was introduced in a bid to prevent overproduction.

The guaranteed income to milk producers in the 70’s and 80’s, regardless of consumer demand, led to a huge surplus.

The quota was only set to be in place for five years, but was pushed back until 2003 when a decision to end them was first mooted.

Failure to adhere to the 1984 EU Commission legislation could see farmers potentially hit with a ‘superlevy’ or fine.

Minister for Agriculture Simon Coveney said that Wednesday was a great day for rural Ireland, adding that “the direct and indirect economic benefits will be felt all over the country”.

“Increasing dairy production will dramatically increase the value of exports, and is already resulting in increased employment creation and investment in rural areas.

“Increased output will be exported, and demand will be driven by global demographics – increasing population, increasing affluence and the urbanisation and westernisation of diet in developing economies.

“This is the most fundamental change to Irish Agriculture in a generation. Since 1984, the industry has operated within a quota environment but now the shackles are off and the sector can start to realise its full potential,” said Minister Coveney.

Source: UTV Ireland


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