Oireachtas Joint and Select Committees
Tuesday, 20 November 2012
Joint Oireachtas Committee on Agriculture, Food and the Marine
Pre-Budget Submission: Discussion with Macra na Feirme
3:40 pm
Mr. Alan Jagoe:
The tax benefits of long-term leasing for the recipients are incredible and that should be enough of an incentive. However, the benefits have not been pushed enough or publicised enough. As I stated earlier, there was the conacre system in Ireland. There are farms dating back generations where the farm is going back to the same farmer every year under the conacre rule. Long-term leasing would be more efficient and effective financially for all parties concerned but for some reason that does not happen. That is a mindset that must change.
On the issue of future milk prices, the price collapse to 21 cent per litre in 2009 occurred within a quota scenario. We still are in the quota era. The price is up in the region of 32 cent per litre at present but volatility is here to stay. If one speaks to the milk processors, they will say there is a one-in-three-year volatility cycle. Please God, it will not be next year. Next year seems to be the year in which prices could go down, but then markets are not up at present. Ireland's milk pool is roughly 1.5% of the overall world supply. If we double that, our milk pool will be somewhere up around 1.8% of the world's milk supply. We are still a relatively small player within the world milk pool. In contrast, every processor in Ireland is going after value-added products and that is where the premium is at present. For example, the Middle East and Africa are areas in which demand for protein from milk products - whether that be cheese, milk or whey - is growing significantly, and that must be good for Ireland. Ireland is producing nearly 17% of the world's baby formula, which is fantastic. That is the product that comes directly from Ireland and does not include Irish products being blended abroad in countries such as China. Ireland is becoming a big, big player but we need support from the relevant institutions as well.
Mr. Connelly mentioned the work we are doing with regard to rural isolation. Nearly every second day we are approached by organisations that wish to work with us. We cannot manage that because, as he stated, we have the equivalent of 14 full-time staff. We are primarily volunteer-based. I am a volunteer and so is Mr. Joyce, along with 8,000 more around the country, champing at the bit to do whatever we can at a local level. We can do so much. Mr. Connelly will expand on that.
No comments