Latest EU initiatives good news for Irish dairy sector, claims Aylward

NEW initiatives by EU Farm Commissioner Marian Fischer Boel will greatly support the Irish dairy sector, according to Ireland East MEP Liam Aylward.

But the move has upset dairy chiefs in New Zealand who claim it will have a detrimental impact on the industry worldwide.

Mr Aylward said he and many others in the dairy sector in Ireland were very worried about the fall in milk prices. But the right decision had now been taken by the European Commission.

A system of export refunds will be reintroduced for a variety of dairy products, including skimmed milk powder, whole milk powder, butter and cheese.

He said a system in intervention would also be implemented for skimmed milk powder and butter products. The commission would also bring forward by two months the aid for private storage initiative to help redress falling milk prices in Europe.

Mr Aylward said these new EU measures should help redress falling milk prices in Ireland.

Moreover, re-introducing export refunds for the dairy sector would help Irish exporters to sell a variety of Irish-made dairy products in third countries outside the territory of the EU. This system of export refunds would help Irish exporters to draw down more EU monies to compensate for lower world milk prices, he said.

However, the New Zealand dairy giant, Fonterra said it believed the EU decision could push down dairy commodity prices even further and slow their recovery.

Fonterra said it acknowledged the considerable pressure on producers with lower prices and the credit crunch. But bringing back subsidies would put more pressure on markets when times were already tough.

The New Zealand government also said it was disappointed Europe was returning to subsidising its dairy farmers with export refunds.