ICMSA say fall in Quota Exchange prices reflect cashflow pressures on farmers and approach of Quota Abolition
Commenting on the outcome of the latest milk quota exchange, Pat McCormack, Deputy President and Chairperson of ICMSA’s Dairy Committee, said that the prices being paid are a clear reflection of two issues: firstly, the financial pressures on dairy farmers at this time and secondly, the fact the farmers purchasing quota are only doing so to cover the milk quota years of 2013/2014 and 2014/15.
“There has been a dramatic reduction in the price being paid for quota with, for example, Dairygold falling from 50 cents per litre to 20 cents and Glanbia falling from 41 cents per litre to 18 cents per litre on this occasion. The financial and cashflow pressures on farmers at this time are probably the major factor leading to the reduction in quota price. But it’s also worth noting that with dairy farmers incomes expected to fall by at least 30 percent this year due to reduced milk prices and in the context of higher input costs and atrocious weather conditions, farmers simply cannot afford to pay any more for milk quota”, observed Mr McCormack.
“In addition, with quota abolition now just two years away, farmers are also making a judgement call on the value of purchasing milk quota to cover just two milk quota years. That reality and the current income pressures are clearly being reflected in the prices being paid”, concluded Mr. McCormack.
Ends 14 November 2012.
Pat McCormack, 087-7608958
Deputy President, ICMSA, and Chairman of the Dairy Committee
Cathal MacCarthy, 087-6168758
ICMSA Press Office