He said the Irish dairy sector is now ‘shrinking before our eyes as deliberately depressive policies and regulations were piled on low prices and high inputs prices’.
“The 150 redundancies that Tirlán is seeking may be just the beginning of a wider sector restructuring. We are in danger of entering a period of decline of the sector that more than any other provided prosperity and economic prospects to rural areas all across the State.
“The tragedy – and in time it will be judged as exactly that – is that it was perfectly possible to move smoothly towards our environmental targets while preserving our world-leading dairy sector and the rural economic bulwark it represents. The ICMSA has on numerous occasions outlined how and why we should do that,” he said.
Denis, who is a Tirlán supplier, said the Government and EU have decided on a crude policy aimed at just regulating dairy farmers out of existence at the prompting of a chorus of self-appointed and self-important so-called eco ‘activists’ and commentators.
“There’s no point in the Government denying that this has not been the policy; the evidence is all around us in the crashing income and plunging volumes of production. It's also to be seen in the empty order books of rural companies and contractors as the ‘milk multiplier' works negatively in reverse. The job losses have now begun and the ‘hollowing-out’ of the rural economy will now pick up pace with the social and demographic changes that will bring,” he added.
A wake-up call for Government – IFA
Meanwhile, president of the Irish Farmers’ Association, Francie Gorman, has said that the cost-reduction programme is very concerning and is a direct result of EU and Government policies.
“The dairy sector is contributing hugely to the economic and social sustainability of rural Ireland. Yet margins are being squeezed by Government policies which are focussed on curbing production rather than on the sustainable growth of the sector.
“The tightening of the existing Nitrates Derogation, together with increased regulation and cuts to supports, are making life more and more difficult for the dairy and tillage farmers that supply Tirlán.
“Today’s announcement must be a wake-up call for the Government to focus on the economic well-being of the sector,” he said
He added: “This announcement will be concerning for Tirlàn staff and their families. Morale is also very low among farmers. There is so much policy uncertainty that farmers cannot make plans. This must be addressed,” he added.
He called on Tirlán to pay a strong milk and grain price to farmers and to ensure access to competitively priced inputs. He said farmers are hurting too and they cannot take any further cuts to their margins.