Mayo farmer Padraig Gibbons worked with milk quotas from the beginning, dealing with them as a farmer, co-op chairman and representative in farm organisations. He says farmers in the west were lucky in that they had more access to quotas.

“Quotas were cheaper here than elsewhere. Nonetheless, for anyone trying to improve and expand, the cost of doing so was challenging. Milk production here is limited by land and fragmentation.”

Padraig started off selling liquid milk around Westport with his late brother, Michael.

“We were bottling it ourselves and any surplus went to the NCF. Then pasteurisation came in and we came to an agreement with the NCF under which we got two liquid milk quotas. Those quotas were big to us, although small in today’s terms. There were grants going and we each got a bulk tank.”

Quotas gave a price for what you were producing, says Padraig.

“They gave us a price you mightn’t have gotten otherwise. There was the drawback that some young people may have gone further in farming but they couldn’t due to lack of quotas. Milking cows wasn’t for everyone, but it generally gave the best return. I reared a family of six on milk. I bought a farm of 87 acres and I bought a certain amount of a quota. The liquid quota was a great start. I’m still involved in liquid milk. I didn’t expand a lot as I’m limited on land. A lot of the money was borrowed. I didn’t get any money from a rich aunt. My father worked as hard on my place, as he did on his own place.”

Padraig was chairman of Connacht Gold/Aurivo for 12 years. He was involved in the IFA and in ICOS.

“Ring-fencing of quotas was a big help to the west. I thought it was very fair. It wasn’t there just to protect farmers, it was there to protect the dairy industry in the west. Milk is still the lifeblood of many rural areas.

“Keeping quotas ring-fenced was difficult – it had to be fought hard for and there were battles at times. Credit should be given to the farm organisations. They held on to it. Now we have more markets. The IDB is doing a great job, among others. Most processors need more milk for the markets they have – although at a price. But I’m delighted with that.”

Quotas in Donegal

A bit more quota was also available here, says Killygordon, Co Donegal, producer Patrick Kelly. His family started off as suppliers to Donegal, eventually becoming dual suppliers and also selling to Connacht Gold.

“I started off as a new entrant in 1996 and I got my own quota then. We went into a milk production partnership in 2003. Under that arrangement, we were able to expand quicker than most other farmers. In the early 2000s, quota was very tight. We were always watching the superlevy – it was a big challenge. Donegal was very tight for quotas. Connacht Gold had more quotas available than any other co-op.”

Patrick began supplying Connacht Gold in 2006. The family expanded output in recent years.

“Consolidation is what I will be doing now. The problem is that when you expand, you lose efficiency. It’s inevitable that costs will increase. You find yourself doing things you wouldn’t normally do. At some point it’s necessary to stand back and reassess.”

He says dairy farmers have had two good years.

“I just hope it won’t go back now to 2009. That was the worst combination: bad weather and low prices. Looking ahead, price will be volatile. We will just have to handle it. Managing cashflow will be key.”

Fragmentation

Padraig Mulligan from Templeboy, Co Sligo, says: “It’s amazing how quickly farmers can move from being limited by quotas to being limited by land. For low-cost production you need a good grazing platform. It’s difficult to stay low-cost if land is fragmented. We invested a lot of money in the quota, now it’s worthless. We worked very hard to get it and we still have to pay for it. We’ll still be paying for the quotas when the regime is gone.”

Padraig and his wife, Mary, started off with one cow in 1972.

“This year we will milk 740. Once I thought that when I retire the milk quota would be my pension. But it’s been pulled from under my feet. I bought 19 farms in my time. After a few years we would restructure and go again. I paid 400 and something pounds for the first one, I paid €14,000 for the last one. Money was easier to come by at that time than now.

“So, not surprisingly, I would prefer if quotas stayed, even though we are capable of producing a lot more milk. I’d rather be certain of a reasonable price than producing more and not knowing what we’d get paid for it.”

Padraig is concerned about prices and volatility.

“The worst is over now, I know, but for how long? The Russian deal upset the markets – the Chinese over-bought. The world population is increasing, but if they can’t pay they’re no good to you. Dairy farmers will have to be very careful over the next few years. We want to put in a new milking parlour, but it will cost half a million. These are big decisions.”

He is concerned that modern technology will allow other areas of the world to increase production, catch up and compete with Europe.

“With sexed semen, you will be able to produce a heifer calf every year. With EBI, you know what you’re breeding. The knowledge gap can now be closed very quickly.”