August 2, 2023

 

Ireland's dairy sector wants clarity on dairy cow reduction scheme 

 

The stance of Ireland's dairy sector leadership regarding the proposed dairy cow reduction scheme is solidifying, with increasing calls for Charlie McConalogue, Ireland's Minister for Agriculture, to provide clarity on the matter, Independent Ireland reported.

 

Tirlan, the largest milk processor in Ireland, recently approached its suppliers to gauge their willingness to participate in a potential cow reduction scheme, should it materialise.

 

Earlier this year, minister McConalogue indicated that his department was exploring the idea of a voluntary dairy reduction scheme, with the reference year set as 2022.

 

In May, the Farming Independent reported that Department officials estimated a potential necessity to cull up to 65,000 dairy cows annually over three years, at an approximate cost of EUR 200 million (~US$219 million; EUR 1 = US$1.10), in order to align the farming sector with climate targets.

 

While Minister McConalogue initiated a consultation process with agricultural organisations regarding the proposed scheme last month, prevailing sentiment within the sector now appears to be tilting against the proposal, and scepticism about its actual implementation is growing.

 

According to several sources in the sector, there's a prevailing belief that the department will observe the implications of stocking rate restrictions, linked to water quality concerns, on overall cow numbers before committing to the scheme.

 

This shifting sentiment is reportedly particularly evident among dairy processors.

 

Last week, Tirlan conducted a milk-planning census, asking its suppliers whether they would participate in a dairy farmer retirement or exit scheme with favourable conditions, and if so, their primary motivations for retiring or engaging in a herd reduction scheme.

 

Questions included inquiries about potential reductions in cattle numbers, plans for land usage if retiring from dairy farming, and milk production projections for the years between 2024 and 2028.

 

Pat McCormack, president of the Irish Creamery Milk Suppliers Association, voiced concerns about the uncertainty engendered by the Department's tendency to "kite-fly" potential schemes through media discussions. He said there is a need for minister McConalogue to make a definitive decision and communicate it clearly to the farming community, underlining that repeated instances of proposed schemes without substantial progress cause unnecessary disruptions and delays in the sector's planning and development efforts.

 

-      Independent Ireland