ICOS comes out against dairy exit scheme

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    New Delhi, August 08, 2023: The Irish Co-operative Organisation Society (ICOS) has confirmed that it is opposed to a potential scheme for farmers to exit the dairy sector and reduce the number of dairy cows in the country.

    The scheme – which has been referred to as a “cow cull scheme” by some stakeholders – was one of the recommendations in the report from the Food Vision Dairy Group.

    The recommendation – which aims to reduce emissions from the sector – divided opinion, with some stakeholders understood to be tentatively in favour of progressing development of the scheme, believing it to be an appropriate measure to allow farmers who may wish to exit dairying to do so.

    Until now, Macra has been the only stakeholder among the farmer and industry organisations to issue a flat-out rejection of such a scheme.

    Now, ICOS has added to that opposition.

    The organisation said: “ICOS does not believe that the proposed scheme will contribute to a viable and sustainable dairy industry into the future.”

    In a submission to the Food Vision Dairy Group (as part of the consultation process on the scheme), ICOS expressed what it called “strong reservations” to the introduction of a dairy exit scheme.

    The co-operative representative body believes that the proposal will have “undesirable consequences for the dairy sector at farm and processing level”.

    Speaking today (Tuesday, August 8), Niall Matthews, the chairperson of ICOS’ Dairy Committee, said: “The dairy industry must be allowed to increase productivity at an organic and reasonable growth rate, so as to support family farms and generational renewal.

    “The reduction in emissions can be achieved by adopting science based measures on farm, and by supporting the adoption of new technologies,” Matthews added.

    ICOS outlined four demands it has for any scheme designed to reduce emissions from the dairy sector.

    These are:

    • A scheme must not impact on milk volumes available to process at co-op level, with ICOS saying that the co-ops have invested heavily to handle milk volumes that were part of an agreed national strategy;
    • It should allow for gradual or organic growth by milk suppliers;
    • It should promote generational renewal and new entrants to dairying to ensure innovation, diversity and a balanced age profile;
    • It should provide a guarantee that the rights of landowners will not be impinged and that the lands are transferrable to all enterprises, including dairy farmers, who may wish to reduce stocking rates on existing holdings.

    Matthews continued: “ICOS is warning government that the introduction of a policy that will reduce milk supply could have very serious economic implications for processing co-ops.”

    He added: “The dairy sector has already transitioned from a period of expansion to moderate growth. It is essential that milk processing plants are utilised as efficiently as possible due to our seasonal grass-based production model according to the reports published in agriland.ie.

    The ICOS representative drew attention to the issue of the potential negative offset of reducing dairy production here only to see production ramp up in parts of the world with less sustainable agriculture.

    Matthews said: “As global demand for nutritious dairy continues to increase, any reduction in Irish output will be offset elsewhere. The leakage of dairy production from a temperate grass-based system, as we have in Ireland, to other systems could double or treble global emissions with the same amount of product.”

    This in turn, Matthews claimed, would result in “zero environmental dividend and long-lasting economic and social implication for rural communities in Ireland, which is not acceptable”.