Irish Dairy Farmers Demand Compensation for Environmental Efforts Amid Income Plunge
Source: The DairyNews
Stephen Arthur, the Dairy Committee Chair for the Irish Farmers’ Association (IFA), is calling for dairy farmers to be compensated for environmental actions taken on their farms, following a dramatic drop in income highlighted in the Teagasc National Farm Survey.
The survey reported that the average income for Irish dairy farmers fell to just under €49,500 in 2023, a steep 69% decrease from the previous year, translating to a loss of €108,000.
This decline in income is "hugely concerning" and signals a potential cash flow crisis in the sector, according to Arthur. The findings are even more alarming considering that total production costs on Irish dairy farms have increased by 56% since 2015. Arthur noted that the average family farm income (FFI) on dairy farms has reverted to levels last seen in 2012, with income per unpaid labour unit now about 30% below the average industrial wage.
Arthur criticized the increased costs imposed on dairy farmers, largely due to sustainability measures which he claims are pushing Ireland’s most profitable farming sector toward financial ruin. He highlighted that since the abolition of milk quotas, farmers have invested over €1.3 billion in environmental measures on their farms. Despite these investments, the costs of compliance with government regulations and the Bord Bia Sustainable Dairy Assurance Scheme (SDAS) have been borne by the farmers, a burden that Arthur insists must now be compensated.
The IFA chair emphasized the need for dairy farmers to be paid for environmental actions similar to practices in other European countries, stating that farmers "can no longer solely carry these costs." Additionally, Arthur expressed concern over the ongoing uncertainty regarding the future of the nitrates derogation, which is crucial for the sector's sustainability.
Arthur is urging the government to protect Ireland’s derogation and calling on Bord Bia and dairy processors to halt passing on compliance costs without comprehensive cost analysis. This approach, he argues, is essential to ensure that farmers are not disproportionately burdened by environmental compliance costs that could jeopardize the future of dairy farming in Ireland.
This decline in income is "hugely concerning" and signals a potential cash flow crisis in the sector, according to Arthur. The findings are even more alarming considering that total production costs on Irish dairy farms have increased by 56% since 2015. Arthur noted that the average family farm income (FFI) on dairy farms has reverted to levels last seen in 2012, with income per unpaid labour unit now about 30% below the average industrial wage.
Arthur criticized the increased costs imposed on dairy farmers, largely due to sustainability measures which he claims are pushing Ireland’s most profitable farming sector toward financial ruin. He highlighted that since the abolition of milk quotas, farmers have invested over €1.3 billion in environmental measures on their farms. Despite these investments, the costs of compliance with government regulations and the Bord Bia Sustainable Dairy Assurance Scheme (SDAS) have been borne by the farmers, a burden that Arthur insists must now be compensated.
The IFA chair emphasized the need for dairy farmers to be paid for environmental actions similar to practices in other European countries, stating that farmers "can no longer solely carry these costs." Additionally, Arthur expressed concern over the ongoing uncertainty regarding the future of the nitrates derogation, which is crucial for the sector's sustainability.
Arthur is urging the government to protect Ireland’s derogation and calling on Bord Bia and dairy processors to halt passing on compliance costs without comprehensive cost analysis. This approach, he argues, is essential to ensure that farmers are not disproportionately burdened by environmental compliance costs that could jeopardize the future of dairy farming in Ireland.
