ICOS delegation raises impact of declining dollar in Brussels

THE impact of the US dollar decline on Irish agri-food exports were among the issues raised in Brussels yesterday by a delegation from ICOS, the co-ops national umbrella body.

Dairy processing and export co-ops urged the European Commission to strengthen EU dairy product export competitiveness through optimum management of the dairy regime, especially in view of the fall in value of the US dollar.

ICOS Director of Policy Martin Varley said the overall discussions were significant because of the changes facing the dairy sector in 2004 and the negative impact that is likely to arise from the CAP reform cuts in the milk sector, which commence in July.

"While the Commission increased Skim Milk Powder (SMP) and Whole Milk Powder (WMP) refunds on January 15, ICOS and its co-ops set out a case for increased cheese and butter refunds to ensure that the EU fills its full WTO export tonnage limits before June 30.

"In addition, the co-op delegation recommended that export refunds for SMP and WMP may need to be increased further if export levels of these products do not increase adequately."

Mr Varley said the delegation urged the Commission to facilitate maximum levels of EU exports, as this will give rise to stronger returns and lower EU stocks.