Minister for Agriculture Michael Creed announced this Wednesday that his Department, tag suppliers and the ICBF had reached agreement on the new funding stream. Approved tag suppliers will now make a contribution of 38c (including VAT) to ICBF on all new tag sets sold.

Minister Creed said that genetic gains helped by ICBF had resulted in €500m in additional profit to the dairy and beef industries.

"Farmers have been the main beneficiaries of the work being done by ICBF over the last 20 years and it is essential that this continues into the future," he added.

The contribution will apply to tags ordered from 1 November for the autumn 2017 calving season.

The Department noted that the tag levy had been a a critical source of funding for ICBF, contributing 20% of core funding. However, the recent option for farmers to opt out of the levy had resulted in "a significant drop in levy collection and more importantly a high degree of uncertainty in this source of funding".

ICBF chairman Michael Doran has welcomed the new arrangement and thanked farmers and breeders for their contribution to the funding of the organisation. "This agreement is significant because it ensures that Irish farmers can retain ownership and control of the asset that they have built up over the last 15 years," he said in a statement.

Exclusive: Farmers must pay tag levy

Minister confirms return of compulsory ICBF tag contribution

As revealed by the Irish Farmers Journal last week, a 38c contribution will apply to all tags sold from this autumn.