Smith seeks increased European Union support for the dairy sector

GREATER levels of European Union support for the dairy sector were sought by Agriculture Minister Brendan Smith when he met with Commissioner Mariann Fischer Boel in Brussels.

Following the meeting, Mr Smith said the commissioner has a full understanding of the importance of the dairy sector to Ireland.

“I left her in no doubt about the urgency in providing appropriate levels of support for the sector at this critical time,” he said.

Mr Smith said the current dairy market situation is very difficult, with market volatility intensified as a result of the credit crunch.

A combination of increased export refunds for butter and skimmed milk powder, as well as the careful and prudent management of the tendering arrangements for butter, now that mandatory limits have been reached, will be crucial to restoring stable market conditions.

“We need a twin track approach, one that involves swiftly moving large volumes of product into international markets and, at the same time, removing product temporarily from the internal market until such time as there is a recovery across the board.

“Practical, targeted and effective market management measures, implemented in a timely manner, operating over a relatively short timescale will speed the recovery and get the sector through current market difficulties,” he said.

Mr Smith also urged the commissioner to avail of the option open to her to consider other support mechanisms.

He said Ms Fischer Boel accepted that the current market situation is difficult and noted that measures already taken had given a boost to the sector and put a floor on the downward spiral, which she believed had bottomed out.

Fine Gael spokesman, Michael Creed TD, called on the minister to spell out what he actually achieved in his discussions with Ms Fischer Boel.

He said Mr Smith needs to come back from Europe with something more than a stream of consciousness and vague noises about unspent Common Agricultural Policy funds.