Dairy processors demand 13 Brexit actions from Government
Dairy Industry Ireland is presenting a 13-point plan to Government and opposition parties that would mitigate against the effects of a no-deal Brexit.

Following a meeting with the Minister for Agriculture Michael Creed, beef and dairy bosses are now setting out their demands with opposition parties.

Dairy Industry Ireland (DII) met with the Fianna Fáil front bench on Wednesday this week.

It has given them a 13-point list that would "ensure the continued success of the dairy industry on the island of Ireland".

Less than seven weeks

“With less than seven weeks remaining until exit day, we still hope that the UK government will deliver a deal that will work for all people in the UK, Ireland and across Europe, but, at present, there is no clear path out of the political mess created and we are doing our utmost to ensure dairy is not collateral damage,” DII director Conor Mulvihill said.

“We completely support the Government’s position of implementing the withdrawal agreement on the table and no border on the island of Ireland.”

Dairy Industry Ireland recommendations

  • Transition period - even in a no-deal scenario, a freeze on the imposition of tariffs.
  • Status quo for origin labelling for milk should allow products produced in NI, with milk from NI, to be British or Irish, and dairy products processed in the south be called Irish or EU, as currently allows.
  • Inward and outward processing should be cleared for milk going north and south of the border for processing into products to minimise disruption. Revenue officials in the UK and Ireland need to come to a quick agreement on this.
  • Work to be done immediately with DEARA in NI and DAFM in the south to ensure issues around exports, transport and veterinary issues are as streamlined as possible for farmers and the company.
  • Allow companies claim VAT as an input credit at the same time as declaring their liability in order to minimise cashflow needs. This VAT deferral licence regime already exists in the Netherlands.
  • Introduce trade support measures, including further export trade financing and export credit guarantees, to support the continued development of international export markets.
  • Introduce direct supports for dairy processors looking to re-tool and re-invest in plant and machinery to produce product lines for new markets.
  • Avoid regulatory divergence in standards to ensure all product is eligible to go into the UK, EU and world markets unhindered.
  • Farmers will need direct income aid in the event of sterling depreciation following a no-deal Brexit. They will also need direct producer supports, basic payment top-ups and emergency market supports.
  • Farmers may also require structural and adjustment support measures to cope with the additional costs and long-term devaluation of returns from the UK market.
  • Put in place a multi-annual framework for funding Brexit mitigation within a temporary EU state aid framework. Funds amounting to 5% of the value of current annual export sales to the UK will be needed annually from domestic and EU sources for three years. Funds should be targeted at supporting innovation, market diversification, upskilling and capital expenditure in equipment and machinery.
  • Introduce an enterprise stabilisation fund. This would enable short-term financing like the supports that were introduced in 2009 that helped firms through the financial crisis and an increase in de-minimus levels of state aid.
  • Introduce additional marketing and innovation supports for companies looking to reformulate, re-package or innovate their product lines for new markets.
  • Solutions

    Following the meeting with representatives from the agri-food industry, Fianna Fáil spokesperson on Brexit Lisa Chambers said the Government has offered very little in the way of support or solutions.

    “Whilst diversifying into new markets is of course welcome, it can take years to make inroads in this regard,” Chambers said.

    “Our agri-food industry has worked tremendously hard to build up their reputation and earn their place on UK shelves and any disruption to the east-west supply chain could see Irish products lose their market share and be replaced with products from other countries which would have long-term negative implications for the sector.”

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    Beef and dairy bosses demand Brexit action from Creed

    'Alternatives' to sucklers needed – Boyle
    Low-income suckler farming is facing the twin threat of Brexit and climate change, with farmers considering other options, Teagasc director Gerry Boyle has said.

    Speaking on RTE's Countrywide show on Saturday, the head of Teagasc raised question marks over the future of suckler farming beyond next month's immediate Brexit threat.

    "There has to be compensation in the event of a no-deal, because the potential implications would be just catastrophic," Boyle said, describing as "good news" current discussions on farmer compensation for up to three years.

    "Beef farm incomes would drop by around half," he warned. "In the longer term, of course, the real worry is that the British would revert to their traditional cheap food policy."

    Such a shift in the UK market, which imports over half of Ireland's beef production, would force deep change.

    Even on our research farms, it is still very challenging to make any kind of a decent margin

    "If you look at the suckling sector, which is a hugely challenged sector, even on our research farms with the best technical applications, it is still very challenging to make any kind of a decent margin," he said.

    "On the fattening side, certainly if you factor in subsidies and direct payments, there are some producers doing very well."

    Boyle accepted broadcaster Damien O'Reilly's suggestion that suckler farmers should look for "alternatives" past the proposed three-year Brexit compensation scheme.

    He said some farmers have already switched to dairy and interest remained high in Teagasc's dairying and farm manager courses, with around 50 students currently enrolled in its new entrant course alone. However, he warned of the high level of investment needed: "You need to get basic training, dairying is a very different business and lifestyle."

    Greenhouse gas emissions

    At the same time, Boyle warned of the pressure to reduce greenhouse gas emissions.

    With no "magic bullet" for agriculture comparable to electric cars in transport, he said a combination of new farming techniques, reduced stock numbers and afforestation would be required.

    "Emissions and livestock numbers go hand in hand. How that's going to pan out in terms of the distribution between dairy cattle and beef cattle is really a matter for conjecture," he said.

    There's a major problem with the requirement to re-plant the forest

    Boyle noted that forestry plantings are at a record low, despite its potential to take 3mt out of the 20mt of carbon dioxide equivalent emitted by Irish agriculture every year.

    "I think there's a major problem with the requirement to re-plant the forest once it's felled," he said. "Personally I think it puts off farmers."

    Dublin2Mayo tractor run hopes to raise much-needed funds for charity
    Building on the success of last year, the Dublin2Mayo charity tractor run returns this Easter weekend.

    The Dublin2Mayo Charity Tractor Run is back, this time bigger and better.

    The run will begin at Dublin Port on Good Friday and travel to Longford before finishing in Kilkelly, Co Mayo, on Easter Saturday evening.

    Organiser Tom Lavelle told the Irish Farmers Journal more about the event.

    “A few of us got together last year and decided to try and raise some money for families we know who have less fortunate children," he said.

    Phenomenal

    "At the beginning we just wanted to raise a few grand, but the response we got was phenomenal.”

    With 20 tractors starting off last year in Dublin, a further 70 tractors rowed in along the route, raising a whopping €96,000.

    “We also raffled off a vintage Massy Ferguson, which gathered a lot of support. The two charities we raised money for last year were Crumlin Hospital and the Special Care Unit in Castlebar.”

    Build on success

    This year, Lavelle and the organising committee are keen to grow the event and build on last year’s numbers.

    “This time we are making a weekend out of it. The tractor run will be finishing in Kilkelly, kick-starting a weekend of festivities.

    "We have a great line-up of performers such as Richie Remo, the Kilkennys and Robert Mizzell. We will be raffling off a Massey Ferguson 135 on the night also.”

    All proceeds raised go towards the Special Care Baby Units in Castlebar and in Mullingar and also to the National Rehabilitation Hospital in Dun Laoghaire.

    Lavelle paid special tribute to all contributors, organisers and to sponsors Communicare Healthcare and Grassmen.

    Interested?

    To get involved in the tractor run or enter the draw for the Massey Ferguson 135, contact Tom Lavelle on 087-426 7070.

    For more information, visit the Dublin2Mayo Facebook page.

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    Hogan receives French Commander of the Order of Agricultural Merit
    There are just 400 people alive today who have received this historic French award for services to agriculture.

    Commissioner for Agriculture Phil Hogan was awarded the Commander of the Order of Agricultural Merit at a ceremony in Paris on Friday night.

    It is an order of merit bestowed by the French Republic for outstanding contributions to agriculture and was created in 1883.

    The commander is the highest possible rank of the order and there are just 400 recipients of the rank alive today.

    The second rank is officer and the third rank is knight. These awards are limited annually to 60 commanders, 600 officers and 2,400 knights.

    Rural way of life

    “Family farms and the rural way of life hold a special place in the heart of the French people, and I view it as my mission and my duty to support this treasured way of life, today and in the future,” Phil Hogan said, accepting the title.

    “When minister of agriculture Jules Méline established this order in 1883, he argued that in the field of agriculture 'labour was intensive and never-ending, devotion was commonplace but the rewards were rare'."

    The Irish Farmers Journal understands that the last Commissioner for Agriculture Dacian Ciolos was awarded knight of the Order of Agricultural Merit.

    Reward our farmers

    “My deeply held belief is that we must continue to reward our farmers for the incalculable contribution they make to the well-being of our people, the well-being of our rural areas and the well-being of our precious climate and environment,” Hogan said.

    “Today, though, I am honoured beyond words, I want to express my profound gratitude to you.

    "I will continue to be a champion of French farmers and French agricultural products wherever I go.”

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