The Irish Co-operative Organisation Society (ICOS) has confirmed its opposition to an exit scheme for dairy farmers, warning that it could have “very serious economic implications for processing co-ops”.

ICOS dairy chair Niall Matthews said such a Government-funded scheme, currently under discussion by the Food Vision dairy group, will not “contribute to a viable and sustainable dairy industry into the future”.

“The dairy industry must be allowed to increase productivity at an organic and reasonable growth rate, so as to support existing family farms and generational renewal.

“The reduction in emissions can be achieved by adopting science-based measures on farm, and by supporting the adoption of new technologies,” he insisted.

Requirements

Matthews outlined ICOS’s non-negotiables for any Government scheme to cut dairy emissions.

ICOS dairy committee chair Niall Matthews.

He said the milk volumes available to process cannot be affected as co-ops, on behalf of their farmer owners, have invested heavily since the abolition of quotas to handle the volumes of milk that were part of an agreed national strategy.

The ICOS representative said a dairy emission scheme should allow for gradual or organic growth by dairy farmers and promote generational renewal,

He also said it should provide a guarantee that the rights of landowners will not be impinged and that lands are transferable to all enterprises, including dairy farmers, who may wish to reduce stocking rates on existing holdings.

Transition

Matthews highlighted that the dairy sector has already transitioned from a “period of expansion to moderate growth”.

“The dairy industry must be allowed to increase productivity at an organic and reasonable growth rate," ICOS insisted. \ Donal O' Leary

“It is essential that milk processing plants are utilised as efficiently as possible due to our seasonal grass-based production model. We cannot support a policy that could reduce milk supply with consequences for the investment made in dairy processing by farmers and their co-ops.

“As global demand for nutritious dairy continues to increase, any reduction in Irish output will be offset elsewhere.

“The leakage of dairy production from a temperate grass-based system, as we have in Ireland, to other systems could double or treble global emissions associated with the same amount of product, while resulting in a zero environmental dividend and long-lasting economic and social implications for rural communities in Ireland, which is not acceptable,” he added.

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