Farmers join Luxembourg protest

THOUSANDS of farmers from across Europe, including Ireland, will protest about low milk prices outside a meeting of farm ministers in Luxembourg today.

Irish dairy farmers face income losses of €19,000 this year as the crisis deepens.

Dairy companies are also facing huge pressure to support farmer incomes, with Dairygold in north Cork forced to pay out €20 million to suppliers to help them survive.

Farmers are preparing to drive tractors from Luxembourg’s city centre to the building where the ministers are meeting.

Up to 100 farmers from every county in Ireland, as well as board members from the country’s nine leading dairy co-ops, will be among those taking part in the pan-European rally which will call on ministers to take aggressive action to ease the crisis.

The demonstration has been called by COPA-COGECA, the umbrella bodies for European farmers and agri-co-ops, as anger mounts in member states over poor market returns.

COPA president Padraig Walshe, leader of the IFA, and COGECA first vice president Paolo Bruni, are due to speak at a press conference close to where the ministers’ meeting will take place.

Mr Walshe said dairy farmers in Ireland are currently selling milk for around 7c per litre less than it costs them to produce it.

Prices last seen in 1983, high costs, lack of bank credit and bad weather have created an unprecedented income crisis, he said.

Warning that thousands of dairy farm businesses will go broke across Europe unless action is taken, he said the consequences will be felt in businesses and towns and villages across rural Ireland. Thousands of jobs dependent on the dairy industry are also at risk.

“We estimate that the average Irish dairy farmer will be €19,000 in the red in 2009. This situation is replicated right around Europe, with some farmers receiving milk prices equivalent to only half of their production costs.

“It is out of sheer frustration with the insufficient action taken by the EU Council of Agriculture Ministers and the Commission that thousands of farmers are converging on Luxembourg,” he said.

Irish Co-operative Organisation Society president Pat McLoughlin said the dairy sector was gripped by a major crisis.

“We need the ministers to take urgent action before farmers and co-ops go to the wall,” he warned.

Agriculture Minister Brendan Smith, who is attending the Farm Council meeting, said he will continue to exert pressure on the European Commission to provide every available support to Irish farmers during the current deep crisis in dairy markets and said he was disappointed that markets had remained weak.

“Prices are historically low and while the commission has made every effort to stabilise the situation, there is no real sign that a recovery is in sight.

“I am concerned that the market continues to show resistance and price returns to dairy farmers in Ireland are now at levels that threaten the very viability of many farm enterprises,” he said.

The commission decided last Thursday to increase export refunds for butter, skimmed milk powder and whole milk powder to ease pressure on the industry.