EU dairy measures to help farmers ‘more symbolic than significant’

THE latest European Union measures to assist dairy farmers have been described as “more symbolic than significant”.

Mairead McGuinness, Ireland East MEP, told the European Parliament in Strasbourg the most welcome news for dairy farmers is that markets appear to be making a slight recovery, with the average price for butter currently 18% above the intervention price.

“However, this trend needs to be reflected in higher prices for milk paid to dairy farmers to restore both confidence and liquidity on dairy farms.

“The analysis of the food chain from producers to consumers must be completed to ensure that farmers get a fair share of the price paid by consumers,” she said

Ms McGuinness said the €280 million package for dairy farmers is welcome but it is unclear how the money will be allocated.

“About €11m will be available to Irish dairy farmers from the fund. The commissioner has stated the money should benefit dairy farmers directly.

“But it is not clear at this stage how the money will be allocated. Clearly dividing the money among all producers would amount to very little if allocated equally to all 18,000 dairy farmers,” she said.

The Fine Gael MEP said the proposal for a stricter quota management regime within each member state would be optional and would not be something Ireland would choose to impose.

She stressed that the dairy crisis highlights the problems faced by the EU as it begins to review the EU budget and focus on farm spending.

Ms McGuinness said there are concerns that the agriculture budget will be raided by those who seek to shift spending away from agriculture.

“Yet, in times of crisis as we have in dairying we see the need for an adequate budget,” she said,

Ms McGuinness said without an adequate EU budget for agriculture, there will be more national measures to assist farmers.