Creed calls on Taoiseach to launch offensive on behalf of dairy sector

TAOISEACH Brian Cowen has been urged to launch a political and diplomatic offensive to address the crisis engulfing the dairy sector.

Fine Gael agriculture spokesperson Michael Creed, who made the call, said there had been no serious political engagement on the issue and no tangible price improvements for farmers.

“I fear that casualties will not be limited to the farm gate. Some processors are in a vulnerable position.”

Mr Creed said, with the Government belatedly talking about the potential of the food and drinks sector, it needs to take notice of the crisis engulfing the dairy sector, traditionally the engine of commercial agriculture. Many jobs were at stake.

“I believe the Taoiseach needs to be directly involved. He should embark on a political and diplomatic offensive with the objective of securing substantial market intervention. Interventions to date are of little consequence,” he said.

Mr Creed said the Taoiseach should start with the incoming Czech prime minister Jan Fischer, who will lead the EU presidency until the end of June. The diplomatic corps should be mobilised and a target of the June heads of state meeting should be set to secure real improvements for the sector.

Mr Creed said the financial situation facing farmers this year due to increased price volatility for agricultural produce was discussed at a meeting between Teagasc and the Irish Creamery Milk Suppliers Association.

A financial planning service is provided by Teagasc advisers to farmers in filling out single farm payment application forms before the May 15 deadline.

With greater price volatility for the main farm-gate produce like milk, beef and grain, this new Teagasc financial planning initiative assists farmers to plan their cash flow for the year ahead.

Teagasc Director Professor Gerry Boyle said dairy farmers are facing particular difficulties this year with a sudden drop in milk price due to lower market returns for dairy produce, which has been exacerbated by the global credit squeeze.

Milk production in Europe declined in the last quota year, despite the increased quota available in member states, but the turmoil in international financial markets has created difficulties for Irish exporters.