Commission moves ‘not going far enough’ to help dairy industry

THE latest moves by the European Commission to help the dairy industry were welcome but did not go far enough, according to the Irish Co-operative Organisation Society.

ICOS, which represents co-ops, said it viewed as positive the steps taken by the commission on butter intervention but was disappointed that export refund levels for skim milk powder did not rise.

The Irish Farmers Association said the commission decisions, and a sustained campaign by Agriculture Minister Brendan Smith and his officials for continued exceptional supports, can kickstart a recovery in commercial markets in the coming months.

Buying in 71% of all the butter offered into the first intervention tender and granting export refunds to 73% of all the skim milk powder and 44% of the butter offered would improve the outlook for European Union dairy markets, the IFA said.

ICOS said the commission was using the intervention tool available to help create a certain balance in the market. But it was very disappointed export refund levels for skim milk powder and butter were not increased and that only 44% of butter bids were accepted.

All market management tools need to be maximised given the current grave market situation. Export refund levels need to be increased. Milk is trading at or below intervention levels. The current real price for milk with the current refund levels is still in the mid to high teens.

ICOS said prices for producers are at an unsustainable level, even for the most efficient dairy farmer. Co-ops supported the milk prices through last year at levels well above market returns, which is not sustainable in the short and long term.

IFA Dairy Committee chairman Richard Kennedy said Mr Smith must continue to canvass his European colleagues and Farm Commissioner Mariann Fischer Boel for sustained strong levels of support until such time as commercial dairy markets are clearly recovering.