Move to bring forward proposals aimed at stabilising dairy incomes

EUROPEAN heads of government want proposals brought forward to stabilise dairy incomes within two months.

German Chancellor Angela Merkel, who raised the crisis in the dairy industry at the leaders’ meeting in Brussels, was supported by Taoiseach Brian Cowen in her call on the commission to take action.

IFA president Padraig Walshe, who earlier met with the Taoiseach and EU Farm Commissioner Mariann Fischer Boel, said the move was very positive and welcome.

He said he hoped the decision would help Mrs Fischer Boel to find the necessary financial resources to support policies that would help milk prices sooner rather than later.

The commission decided on Thursday, before the intervention of Chancellor Merkel and the Taoiseach, to further increase export refunds for butter, skimmed milk powder and whole milk powder.

It also agreed to accept into intervention all quantities of butter and most quantities of skimmed milk powder offered, while maintaining the intervention purchase prices.

Mr Walshe said that decision, while going in the right direction, was completely inadequate to make a real difference to dairy markets and producer returns.

He said pressure is building across Europe for a strong political response to alleviate the dire income situation on the ground.

Mr Walshe called for “a much more aggressive export refund policy from the commission to help alleviate the current dairy income crisis”.

He said there is an urgent need for strong EU dairy support measures.

“Dairy farmers are in an impossible situation this year where milk prices are running seven cent per litre below the cost of production,” he said.

Fine Gael spokesperson Michael Creed added that the latest increase in export refunds for dairy products, while welcome in itself, will not address the critical question of the dairy crisis.

“Dairy farmers simply cannot take the price volatility in the sector and we must look at the market support measures we have and, if necessary, change them so that the sector can survive,” he said.