Co-ops must give farmers benefit of milk price

IFA National Dairy Committee chairman Sean O’Leary has said that the agricultural rate of VAT refund had increased from 4.8% to 5% with effect from January, and he urged all co-ops to ensure that their milk price reflected this in a way that is fair to farmers.

“The VAT inclusive milk price paid to farmers from January should be slightly up on that paid in December, because of the contribution from increased VAT.

‘‘Where a co-op paid a December milk price of 38.77c/l, including VAT, for milk at 3.3% protein and 3.6% fat, it should now pay 38.85c/l VAT inclusive. This may not sound like a lot, but it would add up to €240 over an entire year for a producer supplying 300,000 litres,” O’Leary said.

“We have received reports from some farmers who have found that while the VAT is shown at 5% on their January and February milk statements, the VAT inclusive price is unchanged, which suggests that the net price, before VAT, has been slightly reduced,” he said.

“I am very clear that there is no justification for such a reduction in the base price of milk as markets have remained strong, as evidenced by the IDB index staying almost unchanged at close to its historically highest level of 133.5 points in February,” he added.

“I am urging all co-ops to be fair and honest with farmers, and to ensure that their VAT inclusive price is up by the equivalent of the additional 0.2% VAT now paid by the Exchequer,” O’Leary concluded.

EU/Japanese trade

The IFA and the Japanese Embassy representatives discussed the opportunities for Irish exports of beef and dairy products, which may arise from the EU-Japan

trade deal. The Japanese

market for beef imports from

Ireland was reopened last December but imports of beef and dairy products from Ireland are limited.

Beef crisis

The IFA National Livestock Committee chairman Henry Burns met the Minister for Agriculture this week with cattle finishers to maintain pressure on the Minister to take a more hands-on approach to the beef crisis.

Rural road repairs

IFA deputy president and countryside chairman Tim O’Leary has described the Community Involvement Scheme launched by the Department of Transport in 2013 to support the repair of rural roads as inadequate. This scheme was launched last May to address the deplorable state of rural roads following two harsh winters.

Anti-litter campaign

IFA deputy president Tim O’Leary has accused local authorities of failing to implement litter laws and of allowing serial dumpers to use the countryside as a tip. “Our countryside is a major national asset and, also, our home. Farmers take their role as custodians of the environment seriously and are proud of rural Ireland.’’

Food production

IFA president Eddie Downey has called for a shift in the international climate debate away from fatalistic predictions of future outcomes. Instead, the focus should be on measures that communities can deliver, such as supporting the development of sustainable food production to meet increasing international food demand.

Galway AGM

At a packed Galway county executive AGM in Athenry, attended by 330 members, IFA president Eddie Downey paid tribute to outgoing vice president Padraig Divilly. He said: “Padraig has given tremendous service as an IFA voluntary officer at branch, county and national level for 40 years. His contribution and his record are above reproach and I wish Padraig, his wife Margaret and his family well for the future.”