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  • Potential Investment Costs in Milk Processing and Transport to 2020 | I C M S A
    Autumn Newsletter 2015 ICMSA Newsletter Spring 2015 ICMSA Winter 2014 Newsletter ICMSA Autumn 2014 Newsletter ICMSA Spring 2014 Newsletter ICMSA Autumn 2013 Newsletter ICMSA Summer Newsletter 2013 ICMSA Newsletter Spring 2013 Presidents Speech AGM Read more Login Events Calendar January 2016 Mon Tue Wed Thu Fri Sat Sun 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

    Original URL path: http://icmsa.ie/2010/11/potential-investment-costs-in-milk-processing-and-transport-to-2020/ (2016-01-06)
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  • ADDRESS BY JACKIE CAHILL, PRESIDENT OF ICMSA, AT THE ANNUAL GENERAL MEETING OF THE ASSOCIATION ON FRIDAY, 29 OCTOBER, 2010 IN LIMERICK | I C M S A
    30 cent per litre year in and year out If we start from that point which is where we should be starting from then we come up against the questions that need to be answered both in terms of existing production of milk and our incomes and the potential for a profitable increase in milk production in Ireland The first question is will the EU dairy market be a free market on and beyond 1 April 2015 or will the EU allow individual Member States to deviate from normal competition law the so called Block Exemption Rule and allow arrangements between dairies and groups of farmers in a Member State which will have the impact of segmenting the market and making it more difficult for the Irish dairy sector to hold and gain markets in these Member States Based on reports in Brussels just yesterday the Commission is likely to propose draft EU law on this matter early in December Taoiseach this issue is vitally important to the national interest and the Irish Government must ensure that the Single Market principle is fully adhered to and that there is no nationalisation or carving up of the market and that applies not just to dairying and the food market generally but all markets As an exporting Country we would be the first to meet the pain of this development I am concerned that this move will be allowed in some shape as political pressure is building in France and Germany to agree on mechanisms that will stabilize their dairy markets by better matching production and demand in individual Member States or regions based on contracts and changes to EU competition law Another feature of the dairy sector and world trade is the relatively small proportion of total dairy production that is traded internationally Best estimates would suggest somewhere in the region of six to seven per cent Thus a one per cent change in global demand or supply can affect the amount of product available internationally by up to 17 per cent This change in the volume in the international market can affect prices in the order of 50 per cent It is crucially important for us as exporters to understand this relationship and the multiplier impact of a one percent change in supply or demand Any sector where a one per cent change in demand can change the price by 50 per cent is definitely a sector which is hard to predict and manage We ignore these well established principles at our peril As milk quotas are abolished indeed even before they are finally removed production will increase in a number of countries for example Denmark and Holland will face a super levy this year There is no evidence of any significant reduction in milk output in any part of the EU unless there is a substantial reduction in price I have painted a picture that is not straightforward or simple but the plain facts are that the international dairy trade isn t straightforward or simple And it s wrong and potentially disastrous to pretend it is and plunge headlong into a rapid increase in milk output which would lead to higher levels of farm and co op debt lower farm incomes and bankruptcy Our Danish colleagues can teach us a lesson in this regard The cost of farming in Ireland is dictated by domestic and international trends While we have to accept that energy prices are to some extent determined by international trends and despite some recent improvement electricity prices in Ireland are still higher than can be justified The tariff charged to farmers in Ireland is 4 2 cent per unit higher than in the UK and 2 5 cent per unit higher than the average of the EU On the industrial side electricity in Ireland is still above the average of the EU and about 1 cent per unit above the comparable tariff in the UK Taoiseach our message to you today is that the Government as the single shareholder on our behalf in the ESB should instruct the ESB to reduce electricity prices immediately and to benchmark Irish electricity prices against the levels applicable in the UK and other EU States It is about time we cut through the waffle and gave up the nonsense of trying to create a free market in electricity in Ireland when there will never be a real free market in electricity The UK market is probably the best indicator we have of a competitive electricity price and a simple comparison shows that our prices are way above what is justified The Commission for Electricity Regulation should be abolished and policy decision taken back by the Minister Please do not insult our intelligence by telling us to shop around for cheaper rates Energy constitutes an important input cost in farming and the food processing sector and the Government must revisit the carbon tax and remove this burden on the enterprise and particularly the export led sector If this means a higher level of carbon tax on personal consumption then so be it These are the choices which can no longer be fudged if we are to aim for that 30 per cent increase in exports The EU food market is not working properly and is dominated by multinational retailers to the detriment of both farmers and consumers It comes as no surprise that the margins being taken by retailers are growing In Ireland the retail margin on liquid milk has increased substantially with the result that the share of the retail price that farmers actually receive has fallen from 43 percent in 1995 to 26 per cent last year This retail margin and competition in the food sector has received a lot of attention at political level both in Ireland and at EU level While the efforts made in Ireland are welcome the reality is that the Government will not be able to control and regulate this matter in isolation and

    Original URL path: http://icmsa.ie/2010/10/address-by-jackie-cahill-president-of-icmsa-at-the-annual-general-meeting-of-the-association-on-friday-29-october-2010-in-limerick/ (2016-01-06)
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  • ICMSA describe Tipperary Co-op decision to cut September milk price as 'outrageous and bizarre' | I C M S A
    answer on how they have arrived at their decision We re constantly being told that our price reflects underlying market conditions and demand for our product But how do we then arrive at a situation where dairy markets in September are stronger than they were in August the Northern Ireland milk auction prices are also up the IDB price has remained stable the Fonterra auction price is up and the Dutch quotations are up and yet milk suppliers to Tipperary Co op have their prices cut How does that reflect the underlying market demand This decision is inexplicable and is guaranteed to cause anger and confusion amongst the farmer suppliers stated Mr McCormack Farmers were already disappointed that most co ops had decided not to raise their September prices But to learn against the background of a robust international market and demand for dairy products that certain Co ops intending cutting their price is nothing short of astonishing and must now involve the management and board coming forward with a rational explanation of how they arrived at this bizarre decision concluded Mr McCormack Queries to Cathal MacCarthy 087 6168758 ICMSA Press Office ICMSA President repeats warning that any expansion in milk production must be based on cold hard facts Potential Investment Costs in Milk Processing and Transport to 2020 Search the site ICMSA President John Comer Newsletter ICMSA Winter 2015 Newsletter ICMSA Autumn Newsletter 2015 ICMSA Newsletter Spring 2015 ICMSA Winter 2014 Newsletter ICMSA Autumn 2014 Newsletter ICMSA Spring 2014 Newsletter ICMSA Autumn 2013 Newsletter ICMSA Summer Newsletter 2013 ICMSA Newsletter Spring 2013 Presidents Speech AGM Read more Login Events Calendar January 2016 Mon Tue Wed Thu Fri Sat Sun 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

    Original URL path: http://icmsa.ie/2010/10/icmsa-describe-tipperary-co-op-decision-to-cut-september-milk-price-as-outrageous-and-bizarre/ (2016-01-06)
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  • ICMSA say Beef Sector will not play full role in national recovery till 'inhibiting factors' and loss of confidence in price grid are dealt with | I C M S A
    did not possess any confidence in the current grid which Mr Connolly described as arbitrary over complicated and incapable of transmitting logical and simple messages back to farmers about the prices they can expect to receive Mr Connolly said it was common knowledge all over Ireland that even experienced cattle agents were now confessing that they had no idea what cattle would make on the current grid The resulting loss of confidence was having an enormous knock on in terms of the ongoing reduction in the national suckler herd and the decision of many dairy farmers to cease a beef operation Mr Connolly acknowledged that the current grid was not within the remit of the Minister but he pointed out that the mechanical graders were very definitely the responsibility of the Department and persistent reports about malfunctions had once again undermined farmer confidence in this critical area It should be possible for the Department to publish the results of their inspections of the mechanical graders in exactly the same way as they publish the results of their milk quality inspections It was all very well stated Mr Connolly to hold forth on the potential of the Irish beef sector to help in the national economic recovery But the farmers actually producing the beef had lost an enormous amount of confidence in the pricing system that paid them That loss of confidence could easily be repaired if people were only willing to face the facts and begin working together for the benefit of the whole sector Ends 11 October 2010 Kevin Connolly 087 9381173 Chairman ICMSA Beef Cattle Committee Or Cathal MacCarthy 087 6168758 or 061 314677 ICMSA Press Office ICMSA say current Beef Grid has undermined confidence ICMSA says market situation allows farmers to dictate beef terms Search the site

    Original URL path: http://icmsa.ie/2010/10/icmsa-say-beef-sector-will-not-play-full-role-in-national-recovery-till-inhibiting-factors-and-loss-of-confidence-in-price-grid-are-dealt-with/ (2016-01-06)
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  • ICMSA welcome Minister's statement on direct payments but say avoidable delays still causing worry and stress to farmers | I C M S A
    submitted back in May He said that f armers are rightly asking why these letters were not sent out during the summer so that errors could be resolved well in advance of payment dates Mr Comer said particular anger was centred on the issue of map changes the reality is that these changes will have little if any impact on the level of payment to farmers and it is just another example of pointless bure aucracy and infuriating The Minister s decision to pay the outstanding 75 immediately to cleared cases while welcome should go further and any farmer whose application is clear should be paid his her full entitlement immediately rather than waiting for the 20 October Many farmers were dependent on this payment to meet loan and other commitments and banks are showing no mercy in applying surcharges when loans repayments are late so it s essential that payments are released immediately stated Mr Comer Eq ually annoy ing to farmers is the delay and difficult ies being encountered in contacting the Department to try and resolve issues Farmers simply cannot get in contact with the Department to resolve issues Mr Comer said this is unacceptable and the Minister should establish a facility at each local office where a farmer can call in to resolve issues while long overdue improvements are made to the departmental phone service so that legitimate queries and issues can at least be raised and clarified Direct payments are a huge proportion of farmers incomes and it is essential that any problems are cleared and that the SFP payments due on the 16 th October are made promptly concluded Mr Comer Ends 29 September 2010 Queries to Cathal MacCarthy 087 6168758 ICMSA Press Office Second day of Ploughing sees over 10 000 in dairy

    Original URL path: http://icmsa.ie/2010/09/icmsa-welcome-ministers-statement-on-direct-payments-but-say-avoidable-delays-still-causing-worry-and-stress-to-farmers/ (2016-01-06)
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  • ICMSA President repeats warning that any expansion in milk production must be based on 'cold, hard, facts' | I C M S A
    for extra production The ICMSA President said that question of who will actually fund this investment is an issue on which the dairy industry as a whole must now address and agree While farmers should be encouraged to expand and facilitated if that is their intention it is unreasonable for the cost of this expansion to be loaded on all dairy farmers As an example of where we should be looking for a comparison he highlighted the arrangement which exists in New Zealand where the contribution system to capital investment required to process milk is very well developed On a related issue the preliminary findings of Professor Keane shows that in increase of 20 per cent in milk output without increasing the current peak delivery would require all the expansion to come from a liquid milk type of production all year round production This would clearly be uneconomical where the reduction in processing costs of 0 5 cent per litre would be offset by significantly higher farm production costs that would wipe out the benefit at processing level Based on this preliminary figure it must be concluded that for bulk storable commodity products the clear advantage in an Irish context lies with spring calving grass based production Mr Cahill said that while some people may see the 20 per cent as being very modest and that a much higher level of expansion should be envisaged up to and including the 50 per cent set by the recent Food Harvest Report ICMSA noted that that level of expansion would require a significant change in the dairy product mix produced in Ireland and in an uncertain market and the acceptance that volatility would be a feature of this expanded market it was very difficult to put forward a business plan at this

    Original URL path: http://icmsa.ie/2010/09/icmsa-president-repeats-warning-that-any-expansion-in-milk-production-must-be-based-on-cold-hard-facts/ (2016-01-06)
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  • ICMSA say current Beef Grid has undermined confidence | I C M S A
    prices that it cannot in its present form send any real market signal to farmers which is supposed to be one of the prime functions of any beef price grid system Indeed it is not uncommon for individuals with a load of 15 cattle to get up to 15 different prices Furthermore the ability of farmers and agents with years of experience with cattle to give a reasonable estimation of the possible grading out of cattle is completely undermined by the current grid This is a fundamental and fatal flaw in the grid There is now less effective transmission of market signals than in the past Mr Cahill also said that in addition the price differentials between various grades are grossly unfair and tend to penalise the majority of Irish cattle to a far greater extent than required or was being returned from the market place to meat factories Unfortunately I am forced by my own direct experience to come to the conclusion that the grid was designed in an unrepresentative way where the majority of farmers lose out and the gains are for a relatively small group of farmers and meat factories This is the view held by the majority of farmers right across the country he went on ICMSA is in favour of a price grid which is fair and simple It must be fair to all producers regardless of the type of cattle produced and in this regard I think that the word quality is misleading and does not do justice for the vast majority of cattle produced in Ireland If dairy expansion occurs in Ireland there will be a higher proportion of slaughter animals coming from the dairy herd The system must also be simple so that it is clearly understood and more particularly gives definite straightforward signals to farmers producing and finishing animals I believe that the kind of beef price grid that operates in Scotland which effectively groups cattle under three prices has a lot of merit and would usefully form the basis of a substantially modified price grid for Ireland Last week I formally proposed this to all meat plant operators It is important to note that the Scottish system produces a product which is viewed as being a premier product within one of our more important markets the UK pointed out the ICMSA President Farmers are demanding that we return to the drawing boards and get the basics right There should be fairness and transparency in the system Another issue that requires detailed assurances is the area of cross checking of the mechanical grading equipment So far the Department of Agriculture have failed to make fully available all the information on inspections Our policy is that a regime similar to that which operates in the dairy sector where the results of inspections are published should also apply in the beef sector This is required to build and retain confidence in the mechanical grading system Mr Cahill concluded by advising farmers to demand

    Original URL path: http://icmsa.ie/2010/09/icmsa-say-current-beef-grid-has-undermined-confidence/ (2016-01-06)
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  • Second day of Ploughing sees over €10,000 in dairy student scholarships awarded at ICMSA marquee | I C M S A
    scholarships to the best dairy student from each of the state s six agricultural colleges The John Feely Foundation named for a highly respected former President of ICMSA will hand over cheques in the amount of 1500 to John Kenny Glinsk County Galway representing Mountbellew Agricultural College Ross Hamilton Blessington County Wicklow representing Gurteen College David Quinn Belgooly County Cork representing Clonakilty Agricultural College David O Kelly Charleville County Cork representing Pallaskenry Agricultural College and Mark Trenier Belturbet County Cavan representing Ballyhaise College William Keane of Kilmacthomas is the scholarship recipient designated by his college Kildalton but he will not attend the handing over as he is in New Zealand at present The John Feely Foundation disburses funds and endowments on behalf of ICMSA and Mr Cahill confirmed that a further 1000 is available for the student that best uses the scholarship monies to analyse some aspect of the dairy sector and author a report to be judged by Teagasc Mr Cahill said that he was pleased and confident that the standard of dairy farmers Ireland had coming through was very high and as good as could be found anywhere Ends Wednesday 22 September 2010 Queries to Cathal MacCarthy 087 6168758 or 061 314677 ICMSA Press Office Ploughing Championships 2010 ICMSA welcome Minister s statement on direct payments but say avoidable delays still causing worry and stress to farmers Search the site ICMSA President John Comer Newsletter ICMSA Winter 2015 Newsletter ICMSA Autumn Newsletter 2015 ICMSA Newsletter Spring 2015 ICMSA Winter 2014 Newsletter ICMSA Autumn 2014 Newsletter ICMSA Spring 2014 Newsletter ICMSA Autumn 2013 Newsletter ICMSA Summer Newsletter 2013 ICMSA Newsletter Spring 2013 Presidents Speech AGM Read more Login Events Calendar January 2016 Mon Tue Wed Thu Fri Sat Sun 1 2 3 4 5 6 7 8 9 10

    Original URL path: http://icmsa.ie/2010/09/second-day-of-ploughing-sees-over-e10000-in-dairy-student-scholarships-awarded-at-icmsa-marquee/ (2016-01-06)
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