ICOS told the Joint Oireachtas Committee on Agriculture, Food and the Marine last week that significant Government intervention is needed to ensure the future viability and environmental sustainability of the Irish dairy sector, as serious concerns continue around the nitrates derogation.
In a comprehensive submission, ICOS addressed a range of questions from the Joint Committee including the economic and social implications of a further reduction to the derogation. ICOS President Edward Carr, Dairy Committee chair Niall Matthews and Agri-Food Policy Executive Eamonn Farrell led the delegation.
Edward Carr emphasised the dairy industry’s unstinting commitment to environmental sustainability and stewardship.
“Co-ops and farmers are deeply invested in advancing farm sustainability, with water quality as their foremost concern,” he said.
TASKFORCE
ICOS is calling for the Government to form an inter-departmental taskforce led by the Department of the Taoiseach. This taskforce would be charged with thoroughly evaluating the economic and social implications of any further reduction to the Nitrates Derogation.
Additionally, ICOS says the Government should commission a comprehensive impact assessment to ‘fully and really’ understand the implications of a further reduction.
Analysis prepared by Professor Michael Wallace of University College Dublin, presented as part of ICOS’s submission, reveals stark economic challenges. This indicates that dairy farms in Derogation Band 3 could face a net margin reduction of -56% or €983/ha due to further derogation limits, thereby challenging their economic viability.
Mr Carr also expressed concern that “a further reduction in the maximum stocking rate would severely compromise the competitive edge of Ireland’s grass-based dairy system,” highlighting the system’s reliance on maximising grass utilisation.
ICOS warned that a reduction in farm profitability and changes to dairy production practices could have profound negative impacts on the downstream dairy processing industry, on sectoral cohesion due to milk supply shortages, and on the broader social and environmental landscape.
WATER QUALITY
Mr. Carr was forceful in calling on the Government to protect investments made by farmers, the processing sector, and the State in the Irish dairy industry by securing the Nitrates Derogation’s future, also voicing concerns about the social effects of derogation reductions on family farms and the need for generational renewal.
Strongly emphasising the importance of water quality, Carr highlighted the need to prioritise resources for advisory services, including ASSAP, EIP and the Signpost Farm Programme, thereby supporting compliance, awareness, and education regarding water quality issues.
“Sustainability is our watchword and this must apply in equal measure to environmental priorities as well as the long-term sustainability of livelihoods in rural Ireland and the future sustainable progress of the dairy industry as a key pillar of the Irish economy,” Carr concluded.
