• Home
  • Contact
  • US Envoy
    • Undocumented Irish
  • Dáil Questions
  • Biography
  • Memorial
  • Data Privacy
JOHNDEASYTD.COM
  • Home
  • Contact
  • US Envoy
    • Undocumented Irish
  • Dáil Questions
  • Biography
  • Memorial
  • Data Privacy

Minister adopts Deasy/Creed template for new dairy sector

5/3/2015

0 Comments

 
Follow-on food trade advance on foot of Vietnam visit
John Deasy discussing dairy sector oversight structure with Agriculture Minister Simon Coveney
A proposal by Fine Gael TDs John Deasy and Michael Creed for a new high-level oversight structure to manage the “dramatic” change and growth within the Irish dairy sector has been adopted by Agriculture Minister Simon Coveney.

The two Munster deputies put forward the concept after holding a series of meetings with key industry players ahead of the abolition of EU quotas on March 31 — a development that’s seen many milk producers, particularly younger farmers, investing heavily in expansion.

Arising from these discussions the party colleagues suggested that a new partnership be established to manage the volatility that will occur within the domestic dairy industry, mirroring the situation globally.

Having taken their template on board, the Minister confirmed its implementation at the start of a special Dáil debate on the sector, held on the eve of the opening of Glanbia’s new €235m milk processing plant at Belview.

“We are going to set up a dairy forum so as to ensure all the stakeholders with a vested interest are part of the discussion — and I will chair it,” Mr Coveney said. It will be modelled on the beef forum, albeit “less adversarial”.

Dáil debate: Coveney/Deasy/Creed | click
Local Radio interview
Farmers' Journal article on dairy sector proposal by TDs John Deasy and Michael Creed::: Farmers' Journal story - click to enlarge
Contributing to the debate, which he requested last December on foot of an adverse Teagasc milk price outlook for 2015, John Deasy said his idea for an oversight structure was prompted by the need to carefully manage “the completely new frontier” facing the sector.

Waterford is one of the country’s dairy heartlands with some 750-plus milk producers making a massive input to the wider economy. He says dairy expansion on the scale envisaged offers “enormous potential for rural Ireland,” at a time when many are talking about its demise.

However, reflecting on the vast Irish dairy landscape that prevailed before EU supply controls were introduced 31 years ago — around 65,000 milk producers in 1983 compared to circa 18,000 now — he acknowledged that “one of the main challenges is to keep as many people in this business as possible”.

But despite the inevitable market fluctuations that will be part and parcel of the post-quota era, the outlook for the sector is extremely optimistic, he feels. Mr Deasy said many industry sources he has spoken to regard the projected 50% growth within the domestic dairy sector over the next five years as “conservative.” 

Indeed, the Minister said it’s “reasonable to assume the Irish dairy industry will double over the next 15 years, if not before that”. Agreeing with his view that the conditions for such rapid expansion “are really only available to Ireland within Europe,” Deputy Deasy said the new oversight forum should be about “capitalising on our competitive advantage”.

Crucially, this optimistic perspective is shared by the banks. “Collectively, they have identified the Irish dairy sector as having incredible growth potential and are financing it accordingly. We met AIB and Bank of Ireland and they are competing to get a piece of a massively growing industry,” he said.

“There is no stopping the banks when it comes to lending as they see this as a good bet. If anything,” he suggested, “the new forum will need to take a look at their lending practices over the next three years and keep an eye on that. 

Noting “there is a comparatively low farm debt average in Ireland compared to other countries,” Mr Deasy said “the financial fundamentals for expansion are also far better here than among our European counterparts, and in places like Australia and New Zealand — though to a certain extent the sector’s continued viability will reply on managing the efficiency of dairy farms on an ongoing basis.”

Remarking that the Minister has done a very good job in preparing for the ending of the quota regime (such as the recent €35m investment in new dairy technology centres in Limerick and Cork) the Waterford TD said the partnership proposal he and Michael Creed put forward “is about accentuating the positive and the benefits that will accrue from better organisation in our domestic dairy sector.”

"It’s the perfect opportunity to adapt the Department’s institutional experience and incorporate it into a new industry partnership.”
Picture
::: Glanbia Ingredients' new €235m processing plant at Belview
While what Mr Coveney called the quota “straitjacket” is being removed, Deputy Deasy acknowledged: “The reality is that the increased volatility we’re seeing will continue and maybe worsen across milk markets worldwide over the next 5–10 years as supply and demand finds its level.

“Given the relative unknown farmers are entering into, there needs to be an efficient and flexible oversight structure in place. It would bring all the stakeholders’ resources and expertise together within an effective strategic framework; coordinating their expertise in a cohesive, focused way.”

“The Minister saw that the changeover to unrestricted production would benefit considerably from this sort of proactive approach — and the fact he himself will chair it will give the forum added weight and impetus”.

Central to its workings will be the type of pricing models already being developed to counteract volatility. Also, “Having discussed is the spreading out of superlevy payments over three years, which is happening, another issue we’ve delved into is the degree of fragmentation that exists when it comes to offering farmers fixed milk price contracts,” Mr Deasy said. 

“Certain cooperatives do, but not all. Glanbia have run a very successful offer which is now oversubscribed and entering its fifth year. But in other parts of the country fixed price schemes have failed for various reasons, or are not available at all”.
John Deasy TD and Michael Creed TD with IFA officials::: Productive talks: John Deasy and Michael Creed with the IFA's chief economist Rowena Dwyer & Catherine Lascurettes, national dairy secretary.
He foresees the forum “reacting to whatever regulatory, legislative and commercial measures are required within what will be a rapidly changing environment, and evolving in response to trends and market realities.” 

The intention, he stressed, is “not to create quangos or add to budgets” — but rather to put the resources and know-how that already exists to best use. 

“We’re already seeing an increased level of coordination between the Department and the other key participants, including the Irish Dairy Board, Teagasc, the farming organisations, processing groups, and banks. It’s the perfect opportunity to adapt the Department’s institutional experience and incorporate it into a new industry partnership.”

0 Comments

    FastFinder

    All
    1916
    2016
    Advance Factory
    Aer Lingus
    Agriculture
    AIB
    Airport
    Alleged Abuse
    Ambassador
    Amendments
    American Embassy
    Angling
    Anne Anderson
    Anne Marie Tierney Le Roux
    Anne-Marie Tierney-Le Roux
    Ann-Marie Tierney-Le Roux
    Apple Market
    Ardscoil Na Mara
    ARV
    Ballinamuck
    Bank Of Ireland
    Banks
    Bausch + Lomb
    Bell Lines
    Belview
    BIM
    Blackwater
    Bord BIa
    Breakwater
    Bridge
    British Soldiers
    Buildings
    Bus
    Business
    Bus Shelter
    Butlerstown
    Bypass
    Camphire
    Carriganore
    Cataract Surgery
    China
    Chuck Schumer
    City
    Civilians
    Coast
    Coast Guard
    Commemorations
    Commercial
    Comptroller And Auditor General
    Copper Coast
    Cork
    Council
    Councils
    Cruise Ships
    Crystal Pitch
    Cybercrime
    Dairy
    Dairy Equipment Scheme
    Dairy Forum
    Dairying
    Damien Geoghegan
    Defence Forces
    Deise Greenway
    Deloitte
    Department Of Agriculture
    Department Of Education
    Department Of Finance
    Department Of Health
    Department Of Public Expenditure And Reform
    Department Of Transport
    Diverse Campus Services
    Dowds
    Dredging
    Dublin Castle
    Dungarvan
    Dungarvan United
    Dunmore East
    Easter Rising
    Education
    EIB
    Employment
    Enterprise
    Enterprise Ireland
    EPA
    Error
    EU
    European Commission
    Europol
    Eyesight
    Failte Ireland
    Farming
    FDI
    Fine Gael
    Fishing
    Fishing Port
    Food And The Marine
    Football
    Forensics
    Foster Home
    Frank Daly
    Frank Ronan
    Frank Ryan
    Fraud
    Free Trade
    Free Travel
    Funding
    Garda
    Garda Commissioner
    Geopark
    Gerry Murphy
    Glanbia
    Glandore
    Global Intelligence
    GPO
    Gymnastics Club
    Harbour
    Haulage
    Hauliers
    HEA
    Health
    Helicopter
    HGVs
    Higher Education Authority
    Hogan
    Horse Trials
    Hospital
    Howard Schmidt
    Howlin
    HSE
    IBRC
    ICA
    IDA
    IDA Ireland
    IFA
    Impaired Vision
    Industry
    Inner City
    Institute
    International
    Investment
    Investors
    Inward Investment
    Ireland's Ancient East
    Ireland Strategic Investment Fund
    Irish Civil War
    Irish Dairy Board
    Irish Volunteers
    Irish Water
    ISIF
    Jobs
    John Deasy
    John McGuinness
    John Treacy
    Julie Sinnamon
    Kieran Byrne
    Kilmacthomas
    Kilrush Park
    Legislation
    Leisure Craft
    Lewis Merletti
    Liam Brazil
    Living City Initiative
    Local Authority
    Managers
    Manufacturing
    Marine
    Martin Shanahan
    McGinley
    Mercyhurst College Ireland
    Michael Creed
    Michael Ring
    Michael Street Development
    Michael Walsh
    Milk
    Milk Price
    Milk Quotas
    Milk Suppliers
    Minister Ring
    Multinationals
    Munster
    N25
    NAMA
    National Pension Reserve Fund
    National Roads Authority
    National Transport Authority
    Newgate Centre
    New York
    New Zealand
    Niamh O'Donoghue
    Nóirín O'Sullivan
    North Quays
    NRA
    NTA
    NTMA
    Olympics
    Ophthalmology
    Overpayments
    PAC
    Pigs
    Pollution
    Port
    Port Of Waterford
    Primary Care
    Private Hospitals
    Property
    Public Accounts Committee
    Public Services Card
    Quay Roadworks
    Quotas
    Rates
    Receiver
    Recovery
    Recycling Facility
    Regeneration
    Regional
    Regional Manager
    Rescue 117
    Revenue
    Richard Bruton
    Ridge School Of Intelligence Studies And Information Science
    River Bride
    RNLI
    Rochester
    Ryder Cup
    SAR
    Secondary School
    Sewage
    Sewerage Scheme
    Shandon
    Shannon
    Shaun Quinn
    Sikorsky
    Simon Coveney
    Slaughter
    Sligo
    Social Protection
    Social Welfare
    Southeast
    South East
    Sport
    Sports Council
    Summerhill
    Superlevy
    Tallow
    TAMS II
    Teagasc
    Technology Park
    Thomas Galvin
    Toll
    Tom Galvin
    Tourism
    Tramore
    Transport
    Travel Pass
    Trucks
    UHW
    Unemployment
    University
    University Hospital Waterford
    Urban Renewal
    U.S.
    Valeant
    Valuation
    Vets
    Vietnam
    VLM
    War
    War Of Independence
    Waterford
    Waterford Airport
    Waterford City
    Waterford City And County Council
    Waterford Council
    Waterford Crystal
    Waterford Greenway
    Waterford Institute Of Technology
    West Waterford
    White House
    Whitfield Clinic
    Wild Atlantic Way
    WIT
    WRH

JOHN DEASY TD

  • Constituency Office 35, O'Connell Street, Dungarvan, Co Waterford
  • Phone 058-43003​
  • Email john.deasy@oireachtas.ie

Back to Top

  • Home
  • Contact
  • US Envoy
    • Undocumented Irish
  • Dáil Questions
  • Biography
  • Memorial
  • Data Privacy