An Examination of the Implications of Milk Quota Reform on the Viability and Productivity of Dairy Farming in Ireland
Year: 2008
Type: other
Abstract: Rationale for Undertaking the ResearchThis research proposal was initially developed in 2005.At the time, the Irish dairy farming sector was undergoing a period of substantial change.The Medium Term Review (MTR) of the CAP, agreed in 2003, was introduced in 2005.This policy agreement allowed for the decoupling of all direct payments from production as well as agreeing a reduction in the intervention prices for butter and skim milk powder.Ex-ante analyses of the policy proposal predicted that the policy would expedite the process of structural change in dairy farming, with an increased number of farmers likely to exit the sector following the milk price reductions.These studies suggested that the future viability of dairy farming, following the MTR, would be largely dependent on the efficient transfer of resources between exiting farmers and those wishing to expand production.Up to this time, milk quota transfer between farmers in Ireland operated exclusively through the milk quota restructuring scheme.Following the policy reform, officials at the Department of Agriculture, in conjunction with the main industry stakeholders, were considering changing the structures governing the transfer of milk quota between farmers.The importance of reviewing the milk quota transfer mechanism was acknowledged by the Agri-Vision 2015 committee.The Agri-Vision 2015 report, published in 2005, recommended that the reallocation of quota between farmers needed to be made more flexible and more responsive to farmers' needs.The report called for an examination of the current quota reallocation process, with a view to ensuring that it was not in conflict with the emergence of a competitive low cost milk production structure.It was in this context that the project proposal was developed.The aim of the project was to produce quality, scientific based policy advice on the most efficient means for the transfer of milk quota between dairy farmers.The main objective of the project was to identify milk quota transfer mechanisms that would ensure the viability of the maximum Society, Reading April 2007.Shrestha.S and Hennessy.T (2007) Simulating a regional market for milk quota.Paper presented at the Agricultural Research Forum.Shrestha.S., Hennessy.T, Shallo, L., and Dilon, P. (2006) Estimating the Supply and Demand of Milk Quota in Ireland.Rural Economy Working Paper Series, WPRE19- www.tnet.teagasc.ie/rerc/workingpapers.Shalloo L. and Dillon P. (2006).Is milk quota Worthless?New Vision for the Irish Dairy Industry.Teagasc National Dairy Conference.Wednesday 15th of November, South Court Hotel Limerick, Page 9-15.Shalloo, L., O'Donnell, S. and Horan, B
Authors: Thia Hennessy, Shailesh Shrestha, L. Shalloo, Michael Wallace, Anne M. Butler, Paul Smyth
Language: English
Domain: Life Sciences
SDG: Zero hunger
Open Access status: green
OpenAlex ID: W2182326115