Chief executive at Lakeland Dairies, Colin Kelly, has confirmed the business is doing all it can to contribute to Ireland’s effort to retain its current nitrates derogation.
Speaking to members of the Guild of Agricultural Journalists at Lakeland’s Killeshandra facility recently, he indicated that the total loss of the derogation would impact significantly on the co-op’s production base.
Kelly is not making any predictions on how future discussions involving the Irish government and the European Commission on this vitally important matter will pan out over the coming months.
“We will survey our farmers later in the year. Currently, 40% of them are north of the 170kg of nitrogen (N) per hectare banding figure. This is in line with the national average,” he stated.
“When we looked at the 220kg to 250kg threshold, it didn’t create huge problems for us, as the businesses affected only account for 1% of our milk.”
According to Kelly, introducing a 170kg N limit across the board would have a catastrophic impact on Lakeland Dairies.
“This is why we have been putting in so much work behind the scenes and out in front in that regard,” he added.
Kelly highlighted the importance of the dairy sector to the entire island of Ireland.
“We are operating in a global dairy market. This year somewhere between 10 and 11 billion litres of milk will be produced.
“There will be 14 times this figure produced in America. We have very responsible people producing milk in Ireland,” he continued.
“However, the normal rules of supply and demand will be maintained on a global basis. If the US moves on with its resources to produce milk, it could well wipe out anything that could happen in Ireland.”
Kelly believes that Lakeland can put forward a very sustainable story as to why Ireland should be allowed to maintain its nitrates derogation.
“Lakeland will be putting a very strong case forward in terms of its suppliers. The fact that other member states are now looking for a derogation of their own may well help Ireland’s case,” Kelly said.
“But, at the end of the day, we will not be the people sitting around the table having the regulatory discussions.”