A recent hearing in the European Parliament into the working of the Milk Package, saw many MEPs incorrectly attempt to equate the recent softening of dairy markets with the ending of the quota regime in March 31^st 2015, and some called for the reconsideration of this decision and/or the possibility of imposing of Europe wide supply management schemes after this date.

It is patently clear that quotas have been a yoke on our industry for decades in Ireland. Quotas did nothing to protect us from market difficulties in 2009, 2012 and currently. Quotas did nothing, except perhaps accelerate the decline of dairy farmer numbers in Ireland or forestall the aging of dairy farmers that remain. Quotas saw our industry stagnate while similar dairy economies elsewhere in the world grew and prospered.

Supply management proposals are not new, and ICOS fought a major campaign during the CAP negotiations to defeat the ‘Dantin proposals’. With the current market difficulties these proposals have had new life breathed into them by jittery politicians and sectional interests, looking for a knee jerk reaction to global pricing events.

The most articulate  and developed proponents of this opinion have been the European Milk Board, who are pedalling an idea called the ‘Market Responsibility Programme’ (MRP), which can be very much equated with the afore mentioned Dantin proposals. Despite EMB protestations that this is a crisis instrument, ICOS sees the programme as simply a quota system by another name.

To implement supply management schemes, however well intentioned,  at a time when dairy prices are dictated by world market forces is simply folly, and a whole range of 3^rd party academic analysis into same has studied this and came to the same conclusions.

In fairness to Commissioner Hogan, he has come strongly on the record to say that he does not support this approach, and ICOS will be continuing our work to defend against these basket case models, and work to ensure Irish dairy co-operatives and their farmer owners can grow sustainably into the future. This is after 3 decades of policy restrictions, which may have made sense at the time, but are decidedly archaic for a modern globalised market.

ICOS certainly supports a suite of tools to help dairy in times of market crisis, but supply management has to be knocked out, as a waste of time and money for both dairy farmers and the taxpayer.