Smith expresses fears for future of dairy sector to farm commissioner

CONTINUED concern for the current state of the dairy market was again conveyed to European Union Farm Commissioner Mariann Fischer Boel this week by Agriculture Minister Brendan Smith.

He confirmed yesterday he had spoken with Ms Fischer Boel and had pressed for the immediate activation of all forms of market support “to get the sector through this very difficult period”.

Mr Smith said he will be discussing these matters further with the commissioner in Brussels shortly.

Stressing that the short-term outlook was extremely difficult, he said he reminded the commissioner that the industry is facing an unprecedented situation.

“Allied to the correction to markets that is now taking place as a result of historically high prices in 2007 and 2008, there is the further complication of the credit crunch.

“These two, in combination, have placed an enormous burden on the dairy sector and have caused a slump in demand as a consequence,” he said.

Mr Smith noted the response to date to support the market, through the early introduction of Private Storage Aid for butter, the commitments made regarding intervention for butter and skimmed milk powder, which open for buying-in next week, and the reinstatement of export refunds in recent weeks.

He said the levels at which refunds and intervention function “will be critical to the speed at which we emerge from the current slump.”

The minister said: “I strongly believe we need a multiple track approach — a short sharp utilisation of the full range of market management measures — to get the market back to equilibrium.”

IFA president Padraig Walshe said the majority of dairy farmers will be making no income at current milk prices.