Coveney critical of EU milk quota system

THE MINISTER for Agriculture has criticised the EU milk quota system which, he said, had stifled dairy production in Ireland …

THE MINISTER for Agriculture has criticised the EU milk quota system which, he said, had stifled dairy production in Ireland since 1984.

Simon Coveney told the National Dairy Council conference in Dublin yesterday that he was seeking political support from the Netherlands and Denmark to allow Ireland to increase milk output before the system ends in 2015.

If this did not happen, there would be serious obstacles to Ireland achieving a 50 per cent increase in output by 2020 because farmers would only have five years to gear up to meet the target.

“This is the best country in the world in which to produce milk, especially at a time when the EU has a deficit of milk of 7 per cent, and I am trying to build political alliances to allow more production before 2015,” Mr Coveney said.

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France and Germany opposed such moves and he had even suggested a lowering of the superlevy fines so Irish farmers could increase production to gear up for the end of the quota.

He said it was “by fluke” farmers had avoided over-producing this year. This was because the weather at the beginning of the year was so poor.

He rejected the argument of EU officials that controlling volume controlled price.

Danny McCoy, director general of Ibec, the employers’ organisation, said the vibrancy of the Irish business sector had been overlooked in the last few years as the media concentrated on the banking crisis.

“Irish exports had a record performance last year, growing by a remarkable 9.4 per cent, and are expected to grow again this year by 6 per cent. We need a renewed focus on the domestic economy to drive confidence and encourage consumer spending,” he said.

“Irish households are saving at record rates and this is impacting on the money being spent in the domestic economy. We need to get the message out there that Ireland’s economic recovery is under way so that consumers have the confidence to start spending,” Mr McCoy said.

Pádraig Brennan of Bord Bia said its research had shown that over time, environmental issues would increasingly dictate food and drink purchase decisions.

Aileen O’Toole, managing director of internet consultancy Amas, said the internet, particularly social media, was changing consumer behaviour and their perceptions of food and retail brands.

This would lead to changing marketing approaches as Irish people were spending as much time online each day as watching TV, she said.