ICMSA claims EU’s abolition of dairy refunds will hinder recovery

THE Irish Creamery Milk Suppliers Association has accused the European Commission of taking a decision that could undermine any possibility of a recovery in the dairy markets.

Jackie Cahill, president, said last week’s decision by the EU Dairy Management Committee to abolish refunds on skim milk powder and reduce butter and whole milk powder refunds by 50% was absolutely scandalous.

It showed a complete lack of understanding of the problems facing dairy farmers, he said. Having wrecked the dairy sector though systematic mismanagement, the commission was now intent on undermining any possibility of a recovery.

“The reality is that the market recovery only commenced in August and is still at a delicate stage.

“In those circumstances, the very least we could have expected was that the commission would help to maintain stability in the marketplace by holding their price support levels.

“However, at the very first opportunity, the Commission have pulled those price supports and destabilised the gradual upward price movement.”

Mr Cahill called on Agriculture Minister Brendan Smith to voice his objections to the decision and seek its reversal.

“The market is showing signs of recovery and the EU Commission must retain its price support levels at previous levels for a sustained period if that tentative recovery is to be allowed gain momentum.”

Mr Cahill said the market needs a degree of stability and a clear plan of action based on logic and the realities of the situation.