Irish creamery body clashes with Agriculture Minister over dairy crisis

THE Irish Creamery Milk Suppliers Association has clashed with Agriculture Minister Brendan Smith over the cause of the dairy industry crisis.

Mr Smith earlier dismissed as “an entirely flawed argument” the suggestion that quota increases are the cause of the current low prices for milk, not least when EU production is already more than 4% under quota.

But in response the ICMSA leader Jackie Cahill said the reality is that EU milk production is increasing at a time when consumption is falling. The resultant market imbalance has caused the biggest crisis in the dairy sector ever.

“The crisis is due to extra milk production in the face of falling demand, resulting in falling milk prices to farmers which in turn has forced farmers to produce even more milk. This vicious cycle is facilitated and magnified by quota increases,” he said.

Mr Cahill said the minister claims his policy is to bring about an expansion in Irish milk output. The reality on the ground is that production is actually falling and falling at least as rapidly, if not more so, in Ireland than in other EU countries.

He said dairy farmers now expect Mr Smith to stop talking about entirely flawed arguments and to set about winning the argument in Brussels to get a milk price increase that can be sustained.

Meanwhile, the Irish Farmers Association Dairy Committee chairman Richard Kennedy said he would be meeting with Mr Smith before the EU Agriculture Council of Ministers considers the recently published commission report on dairy markets in September.

“The commission report is unfinished business, providing an important commitment to dairy market supports for the medium term, but needing additional measures to help lift dairy prices,” he said.