Peak supply penalty is touted by Jim Woulfe
Published 26/10/2010 | 05:00
Dairy farmers should be penalised on milk supplied during peak months in order to encourage production earlier in the year. The radical suggestion was made by Dairygold chief executive Jim Woulfe at last week's ICOS national conference.
Mr Woulfe insisted that he was speaking on a personal basis as he hadn't discussed the issue with his co-op board.
He said the dairy industry needed to become more mature about concepts such as flattening the supply curve because it was in the national interest.
While he didn't specify what form any penalties should take, he said they would not be introduced for the co-op's benefit but for the benefit of all.
ICOS dairy policy executive TJ Flanagan told the conference that the seasonal nature of Irish milk supplies was the "elephant in the room".
While Ireland's milk processing capacity is under severe pressure during peak supply months, Mr Flanagan pointed out that the industry was at 60pc capacity for the year as a whole. He said a strategy to level out the milk supply had to be considered.
Meanwhile, dairy farmers were warned that the milk quota regime will remain in place up to 2015 and that superlevy bills could be a factor over the next four years.
Suggestions that the quota regime would be relaxed in the run-up to the final removal of quotas were discounted by speakers at the ICOS conference.