Irish Farmers Association (IFA) president Joe Healy said it is important that the bulk of the funds made available for farmer supports under the package are not conditional on farmers scaling back production. He added that Minister for Agriculture Michael Creed must secure maximum flexibility to ensure Ireland’s share of the €350m package can be used to support farmers’ cash flow across all sectors.
“Minister Creed must optimise the value of Ireland’s €11.1m share of the funds announced today," Healy said. "First, he must provide national matching funding, and secondly, he must use this to reduce the cost of short-term borrowing for farmers in all sectors.”
The IFA had previously proposed a state-aid backed loan package allowing farmers to deal with merchant credit, superlevy and other bills and Healy said that Monday’s package of support "could be used to enhance the proposed loan scheme and must be delivered urgently.”
ICMSA
Meanwhile, John Comer, president of the Irish Creamery and Milk Suppliers Assocation (ICMSA), has commented that the "success or failure of this package" will depend on its delivery of an increased milk price.
This package must be implemented immediately. We cannot wait until September
In this regard Comer said it is important the package is implemented immediately before the traditional EU holiday break.
"This package must be implemented immediately. We cannot wait until September," he said.
Comer also echoed Healy's remarks that the Irish Government should fully match the €11.1m EU package the country has received.
However, the ICMSA has always been on the other side of the fence to the IFA when it comes to encouraging farmers to curb milk production and for this reason Comer welcomed the EU decision to deliver this scheme at EU level so that all EU farmers have the option to participate in the scheme.
"This scheme is voluntary so it provides farmers with the option to reduce production while market prices are poor but importantly, it does not prevent farmers from expanding if they wish," Comer said.
Further clarifications and adjustments needed
Copa and Cogeca, the EU umbrella farming organisation, said the announcement is "a positive move" but stressed that further clarifications and adjustments will be required.
Pekka Pesonen, Copa and Cogeca Secretary-General, said: “We welcome the EU Commission plan worth €150m to give incentives to EU dairy producers to reduce on a voluntary basis their production. But we need further clarifications on how EU farmers will have access to it under the same conditions”.
Pesonen also said he welcomed the €350m worth of targeted aid for EU milk and livestock farmers but he added that clarification on how this will work in practice is "crucial".
Questioning the fairness of support
Finally, ICSA president Patrick Kent has questioned the granting of a further rescue package for dairy farmers "while beef farmers continue to seek fair play for their own sector".
How is it that Brussels can repeatedly come up with money for dairy farmers and find nothing for beef farmers?
Kent said the ICSA "is simply looking for equal treatment for the beef sector. However, yet again we are seeing aid flooding to the dairy sector while the beef sector is cast adrift. How is it that Brussels can repeatedly come up with money for dairy farmers and find nothing for beef farmers?"
Kent added that the announcement is "particularly galling" for beef farmers in the light of the impact that Brexit is already having.
"In addition, the recent military coup in Turkey has added an extra level of risk and uncertainty to the live export market that we have only recently welcomed."
Concluding, Kent said, “We had an EU rescue package in 2015 for dairy farmers which was matched by a Government top-up of €14m. At the time ICSA was concerned that such a move would set a precedent whereby dairy farmers would continue to seek and receive additional support. This prospect has now come to pass while beef farmers continue to grapple with low incomes and uncertain markets.”
New supports for Irish dairy farmers
€11.1m dairy support welcome but key details to clarify