Following on from the EU milk production reduction aid scheme introduced in 2016, a number of amendments have been put forward by MEPs in the European Parliament that would incorporate supply reduction schemes into existing legislation.

The move is part of process of simplifying current CAP rules, with a series of measures included in the so-called ‘‘Omnibus’’ regulation published by the European Commission towards the end of 2016.

These new measures have to be agreed by both the European Parliament and the European Council of Ministers before coming into law from 1 January 2018.

Amendments put forward by MEPs include schemes to reduce production at times of serious market imbalance. That involves granting aid to producers in specific sectors who voluntarily reduce their production over a period of three months, compared with the same period the previous year.

Milk reduction

The proposal is similar in practice to the milk reduction scheme of 2016, except that this time, it would be across various sectors, and paid for by a levy on producers who increased their production during the same period.

That idea has been criticised by the body which represents Irish co-ops, ICOS, which has pointed out that the proposal, if implemented, would be “hugely detrimental” to an expanding Irish dairy industry.

However, other organisations, including Fair Price Farming and Holstein NI, have called for the EU to put in place ongoing voluntary milk reduction schemes, that kick in when the market moves out of balance.

They believe the scheme should be funded by a 0.1c/l levy on all EU milk producers (to be match-funded by the European Commission).