The Irish Farmers' Association - IFA

Lobbying Organisation The Irish Farmers' Association - IFA

Date published 21 May, 2020

Relevant Matter Public policy or programme

Public Policy Area EU Affairs

Period 1 Jan, 2020 to 30 Apr, 2020

Specific Details Dairy - Need for strong EU Supports in the COVID-19 Emergency

Intended results Aid to Private Storage (APS) is the most suitable support for the dairy sector in the face of market disturbances caused by COVID-19 • APS is relevant to long life dairy products. The APS scheme is legislated for under EU Regulation 1308/2013, Article 17 onwards. Butter, cheese and SMP are all eligible. These are long life products, which with refrigeration (butter and cheese) or ambient storage (SMP) do not lose substantial value over the minimum storage period provided for in the scheme. • APS can be used even when the recorded average prices have not fallen below the reference thresholds. While Article 18 a) makes reference to average Union market prices recorded (as per EU MMO) and the reference thresholds (which are below production costs, but dictate when the EU can open intervention) and the production costs, there are other conditions which may lead to the aid being granted. • Article 18 b) states that the conditions for granting aid include “the need to respond in a timely way to a particularly difficult market situation or economic developments having a significant negative impact on the margins in the sector”. • The Irish dairy sector has solid experience of APS. The logic of APS is that it provides a subsidy towards the costs incurred by the operator to store product for a set period, with a stipulated period within which product may go into storage, and a minimum and maximum storage periods before released to the market. This takes the product off the market and reduces supplies temporarily to allow for prices to recover. • APS became an important EU tool during the market disturbance which followed the Russian Embargo of August 2014. An operator's willingness to utilise APS depends on their anticipation of a better price level being available at the end of the storage period. • In its ‘China Food and Agribusiness Monthly' for March 2020, Rabobank points to the restart of food imports, which they report are being prioritised as the country slowly gets on top of the COVID-19 pandemic. While they suggest that dairy demand may gradually normalise in the second half of 2020, they warn that domestic stocks have been building. • The solid experience of APS used by Irish operators, and the expectation of improved dairy demand late 2020 or early 2021 would suggest that a suitably designed APS scheme could be the most effective way to support markets and minimising commodity price reductions for the short to medium term. Export Credit Insurance • In its Temporary Framework to enable Member States to further support the economy in the COVID-19 outbreak, the EU Commission provided for a relaxation of state aid rules to enable member states to fund temporary export credit insurance. • For certain markets which present a real non-marketable risk linked to COVID-19, this may facilitate the continuation of export flows and the fulfilment of contracts with a view to keeping them going beyond the crisis. The Government must seriously consider this measure for the dairy sector. Intervention • In the wake of the 2014 Russian ban, intervention played an important role in supporting markets in the context of a market price collapse. • Current intervention buying in prices - €1,698/t for SMP and €2,220/t for butter – combine to a milk price equivalent of only 20c/l – well below even the most efficient Irish production costs. • An increase in the reference price for intervention to align it to real production costs would be necessary for the scheme to provide the exceptional market support needed in these exceptional circumstances. • The use of intervention after the Russian ban led to a build-up of over 400,000t of SMP which overhung the market for a 3-year period. Disposal of stocks when the COVID-19 crisis comes to an end should be such as to avoid any interference with the rapid recovery of markets. Dairy farmers need the prompt introduction of APs that will hel to rectify the current turmoil in the market place

Name of person primarily responsible for lobbying on this activity Tim Cullinan, IFA President, Tom Phelan IFA Dairy Chairman, Jim O'Connor, Roscommon IFA Chairman, Gavin White, Longford IFA Chairman, Kathleen Henry, Sligo IFA Chairperson, Des McHugh, Leitrim IFA Chairman; Dairy Chairmen as follows: E Bannon, Meath; J Kealy, Carlow; M Kennedy, Sth Tipp; N Murphy, Galway; A Dundas, Clare; P O'Neill, Longford; D Kelly, Leitrim; P Mulligan, Sligo; P Carroll, Tipp Sth; MJ Scallon, Wexford; B Hickey, Kilkenny; M O'Dowd, Kerry; J Hannon, Limerick.

Did any Designated Public Official(DPO) or former Designated Public Official(DPO) carry out lobbying activities on your behalf in relation to this return? You must include yourself, and answer Yes, if you are a current DPO or a DPO at any time in the past. (What is a Designated Public Official?) No

Did you manage or direct a grassroots campaign? Yes

What is the directive you gave to the grassroots campaigners? To lobby members of the Oireachtas on the Implication of the COVID-19 Emergency for Dairy Farmers

Was this lobbying done on behalf of a client? No

Mass communications

Email All TDs

Submission All TDs

Email All Senators

Submission All Senators

Email All MEPs

Submission All MEPs

Lobbying activity

The following activities occurred for this specific Subject Matter Area.

Email (21-30)

Submission (2-5)

Conference Call (1)

Letter (1)

Phone call (51-100)

Social Media (11-20)

Designated public officials lobbied

The following DPOs were lobbied during this return period on this specific Subject Matter Area. These DPOs were involved in at least one of the Lobbying Activities listed above, but not necessarily all of them. As returns are specific to a Subject Matter Area the above Lobbying Activities may be associated with multiple returns.

Michael Creed Minister (Department of Agriculture, Food and the Marine)

Jonathan Hoare Special Adviser (Department of Agriculture, Food and the Marine)

Brendan Gleeson Secretary General (Department of Agriculture, Food and the Marine)

Leo Varadkar Taoiseach (Department of the Taoiseach)

Philip O'Callaghan Special Adviser (Department of the Taoiseach)

Charlie McConalogue TD (Dáil Éireann, the Oireachtas)

Jackie Cahill TD (Dáil Éireann, the Oireachtas)

Paul Daly Senator (Seanad)

Brian Stanley TD (Dáil Éireann, the Oireachtas)

Holly Cairns TD (Dáil Éireann, the Oireachtas)

Matt Carthy TD (Dáil Éireann, the Oireachtas)

Ciarán Cuffe MEP (European Parliament)

Clare Daly TD (Dáil Éireann, the Oireachtas)

Frances Fitzgerald MEP (European Parliament)

Luke Ming Flanagan MEP (European Parliament)

Billy Kelleher MEP (European Parliament)

Seán Kelly MEP (European Parliament)

Grace O'Sullivan MEP (European Parliament)

Mairead McGuinness MEP (European Parliament)

Mick Wallace MEP (European Parliament)

Maria Walsh MEP (European Parliament)

Deirdre Clune MEP (European Parliament)

Barry Andrews MEP (European Parliament)

Sinead McPhillips Assistant Secretary (Department of Agriculture, Food and the Marine)

Michael Lowry TD (Dáil Éireann, the Oireachtas)

Mattie McGrath TD (Dáil Éireann, the Oireachtas)

Alan Kelly TD (Dáil Éireann, the Oireachtas)

Garret Ahearn Councillor (Tipperary County Council)

Martin Browne TD (Dáil Éireann, the Oireachtas)

Joe Carey TD (Dáil Éireann, the Oireachtas)

Michael McNamara TD (Dáil Éireann, the Oireachtas)

Violet Anne Wynne TD (Dáil Éireann, the Oireachtas)

Aindrias Moynihan TD (Dáil Éireann, the Oireachtas)

Michael Moynihan TD (Dáil Éireann, the Oireachtas)

Seán Sherlock Minister of State (Department of Foreign Affairs)

Billy Cameron Councillor (Galway City Council)

David Stanton TD (Dáil Éireann, the Oireachtas)

James O'Connor TD (Dáil Éireann, the Oireachtas)

Pádraig O'Sullivan TD (Dáil Éireann, the Oireachtas)

Padraig Barrett Director of Services or Equivalent (Cork County Council)

Tim Lombard Senator (Seanad)

Simon Coveney Tánaiste and Minister (Department of Foreign Affairs)

Christopher O'Sullivan TD (Dáil Éireann, the Oireachtas)

Michael Collins TD (Dáil Éireann, the Oireachtas)

Micheál Carrigy Senator (Seanad)

Joe Flaherty TD (Dáil Éireann, the Oireachtas)

Michael Fitzmaurice TD (Dáil Éireann, the Oireachtas)

Claire Kerrane TD (Dáil Éireann, the Oireachtas)

Denis Naughten TD (Dáil Éireann, the Oireachtas)

Eugene Murphy TD (Dáil Éireann, the Oireachtas)

Frank Feighan TD (Dáil Éireann, the Oireachtas)

Marian Harkin TD (Dáil Éireann, the Oireachtas)

Martin Kenny TD (Dáil Éireann, the Oireachtas)

Marc MacSharry TD (Dáil Éireann, the Oireachtas)

Helen McEntee Minister of State (Department of Foreign Affairs)

Thomas Byrne TD (Dáil Éireann, the Oireachtas)

Jennifer Murnane O'Connor TD (Dáil Éireann, the Oireachtas)

Cathal Crowe TD (Dáil Éireann, the Oireachtas)

Malcolm Byrne Senator (Seanad)

Paul Kehoe TD (Dáil Éireann, the Oireachtas)

Michael D'Arcy TD (Dáil Éireann, the Oireachtas)

Michael D'Arcy Senator (Seanad)

Patrick O'Donovan TD (Dáil Éireann, the Oireachtas)

Kieran O'Donnell TD (Dáil Éireann, the Oireachtas)

Robbie Gallagher Senator (Seanad)

Niamh Smyth TD (Dáil Éireann, the Oireachtas)

Charles Flanagan Minister (Department of Justice and Equality)

Paul Kehoe Minister of State (Department of Defence)

Brendan Griffin Minister of State (Department of Transport, Tourism and Sport)

Marie Sherlock Senator (Seanad)

Brendan Smith TD (Dáil Éireann, the Oireachtas)

Chris MacManus MEP (European Parliament)