Price volatility has dominated the pre-budget submission put forward by ICOS, which said the problem “is one of the most consistent and damaging issues affecting Irish dairy farmers”.

ICOS president Martin Keane said the organisation is proposing the introduction of an income stability tool: “A co-op structured agri-taxation measure that would allow a farmer to voluntarily defer up to 5% of his income during a year, to be drawn down anytime within five years. This would allow a farmer to draw upon additional revenue when needed most.”

ICOS said Budget 2017 offers the Government a real opportunity to address milk price volatility: “An imbalance in the global demand-supply equation for dairy products has resulted in a sharp decline in milk price since August 2014.

"The prolonged nature of the current price trough requires a fresh approach and an urgent rethink from policy makers at an EU and national Government level.”

Price volatility remains a significant threat

Keane added that while the EU support packages in July 2016 and September 2016 were welcome, “it must also be acknowledged that the Irish co-ops have supported their members significantly over the last two years, way in excess of the direct aid packages provided by the EU. Put simply, co-ops are the backbone of many rural towns and villages throughout Ireland.”

He also said price volatility remains a significant threat to the achievement of the Government’s Food Wise 2025 strategic vision for the agri-food sector.

Brexit

On the issue of Brexit, the ICOS president said the consequences for the Irish agri-food sector need to be fully understood by the Government before the beginning of formal negotiations between the EU and the British government.

“In 2015, Ireland exported €5.1bn worth of agricultural products to the UK market, including €970m in dairy products and €1.1bn in beef products. A range of issues will require careful consideration by Government at the highest level, including market access, administration and customs, equivalence of standards and the impact on the EU budget. Fundamentally, the Irish Government must ensure that the impact of Brexit is kept at the very minimum.”

Read more

IFA wants more money for sucklers and more tax breaks

Small Firms Association calls for end of USC surcharge for self-employed