Seanad debates
Tuesday, 11 November 2003
Direct Payments Decoupling: Statements.
As the single farm payment is based on historical reference years, it is clear the new system will suit farmers who were well established during that time. It will, however, create barriers for those who commenced or attempted to upscale at that time and also for those who bought land since then. Glanbia chief executive, John Moloney, recently said the average milk producer would require a quota of 138,000 gallons by 2007 to equal the average industrial wage. Currently the average milk quota size in Ireland is 40,000 gallons. That compares badly to other areas such as Northern Ireland, where the quota is 70,000 gallons, Denmark, where the quota is 100,000 gallons, and New Zealand, where the quota is 190,000 gallons. Clearly, therefore, there is enormous pressure on those who remain in dairy farming to upscale their level of production significantly in a short period. Undoubtedly, this will require a thorough restructuring of the dairy industry. The Minister has not, as yet, given an indication of how he envisages the milk quota system being restructured and how it will operate to enable quantities of scale to increase.
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