Concerns over cross border milk

Frantic negotiations are taking place - involving Belfast, Dublin, London and Brussels – aimed at maintaining the full integrity of Irish dairy markets beyond January 1st next.

According to Dairy Council NI’s Dr Mike Johnston, the Northern Ireland Protocol, agreed as part of last year’s Brexit Withdrawal Agreement, guarantees the free movement of raw milk north:south - irrespective of whatever future trade agreement is reached between London Brussels.

“But this is only part of the story,” he stressed.

“We need a commitment from the EU to allow NI milk that is mixed with Republic of Ireland milk and manufactured in the Republic to be designated as EU. We need this to allow these mixed origin products to continue to be exported under the aegis of the European Union.

“If this does not happen, these products will not be eligible for the various EU dairy support measures, nor will they be considered as eligible items within the criteria laid down for the various free trade agreements reached by the EU with a host of other countries around the world.”

Johnston continued:“It is common practice for raw milk exported south from Northern Ireland to be mixed with milk produced in the Republic of Ireland.

“At the moment, this practice creates no problems whatsoever. But all of this will change once Brexit becomes a full reality unless we have a change of mind by the EU.

“The dairy industry became aware of the problem earlier this year. The fact is that any form of future trade agreement reached between London and Brussels will not cover the issue of exporting mixed origin milk products from the Republic of Ireland after December 31 this year.

“It will take a separate commitment and decision by the EU to solve the problem. And this is what we are trying to secure at the present time.”

Johnston confirmed that failure to find an agreement on this issue will impact dairy farmers on the island of Ireland. He said: “If this matter isn’t deal with and an accommodation found to designate these mixed origin products manufactured in the Republic of Ireland as EU, there will be implications for the Irish milk market as a whole with the effects being felt by dairy farmers and processors.

“In addition, all those involved with the Irish milk sector believe that such an eventuality would break the principles laid down within the Good Friday Agreement, and must not be allowed to happen.”

Johnston went on to flag up the intense efforts being made by dairy industry representatives and Ireland’s Foreign Minister Simon Coveney TD as they try to get this matter resolved.

Commenting on other matters, Mike Johnston indicated his full support for the establishment of a food export marketing body in Northern Ireland. Calls for the setting-up of such a body were made by Northern Ireland Food and Drink Association (NIFDA) chairman Nick Whelan.

“Collaborative marketing makes total sense,” confirmed the Dairy Council chief executive.

“Our experience within the local milk industry shows clearly that for every £1 invested in a collaborative marketing venture, targeting export markets, a £15 payback in terms of additional sales can be expected.

“So I see no reason why all the food sectors in Northern Ireland cannot join forces and take a similar approach. But the process must start now. Making it happen will require a commitment from the various food organisations, farming bodies and the Stormont Executive in equal measure.”

Significantly, Johnston does not believe that the establishment of a new export marketing body will sound the death knell for organisations like the Dairy Council. As far as he is concerned, it’s a case of building on what we have already.

Johnston concluded: “The Dairy Council will remain eligible for a number of EU funded sustainability and marketing programmes beyond Brexit. We fully intend availing of these opportunities.

“However, there is every reason for the food industry, as a whole, in Northern Ireland to have a discussion on how best it can market its produce in a more collaborative way. We have talked about these matters for a long time, and now is the time for action.”