Dairy leaders call on commission to provide more market supports

A MEETING of Irish dairy industry leaders in Fermoy called on the European Commission to provide further market supports to ease the income crisis being faced by farm families.

The unanimous call by the Dairy Industry Forum focused especially on the need to increase export refunds.

Irish Farmers Association president Padraig Walshe, who chaired the meeting, at which the entire dairy processing sector was represented, said the income problems were unprecedented.

The forum also called on the Government to provide badly-needed export credit insurance now, and implement strategies to reduce the excessive cost of doing business in Ireland compared with competitors elsewhere.

In addition, it sought more government action to force the banks to provide access to better credit facilities to enable farmers get through the cash flow crisis. Mr Walshe also urged the industry itself to immediately initiate a programme of restructuring.

This was needed to ensure processing resources are best utilised and future production plans are focussed on maximising market returns to farmers.

The necessity of restructuring processing capacity could no longer be dodged by our co-op boards, he said.

Mr Walshe said there is a great deal of room to optimise the use of existing plants to reduce costs and ensure a product mix which improves returns to producers.

“Crucial decisions must be made now by the dairy processing sector, and implemented within the next 12 months,” he said.

Mr Walshe said the Dairy Forum meeting particularly identified further increases in export refunds as the quickest mechanism of dealing with the structural surpluses on the market.