Demands for delay in release of dairy products from intervention

FARM leaders have stepped up their demands on the European Commission not to release dairy products from intervention stocks onto the market until later in the year at least.

They want the stocks held in intervention to ensure the markets are not disrupted so that the price paid to suppliers is not undermined.

Irish Farmers Association president John Bryan said dairy markets seem to have stabilised in recent weeks.

But uncertainty over EU market management, particularly the management of intervention stocks, created unnecessary nervousness and price weakness in January and February.

He said Agriculture Minister Brendan Smith must obtain a clear commitment from the EU Agriculture Commissioner Dacian Ciolos that he will hold intervention stocks at least until the last quarter of the year, and will manage any subsequent release carefully to avoid any damaging market disturbance.

IFA Dairy Committee chairman Kevin Kiersey said the minister must also look for greater flexibility from the Commission to make use of export refunds, without first waiting for markets to fall.

The Irish Creamery Milk Suppliers Association said it raised the question of the timing of the release of intervention stocks with the European Commission’s milk policy head Thorkild Rasmussen when he addressed a recent ICOS organised meeting of dairy industry leaders in Horse and Jockey, Co Tipperary.

Dairy Committee chairman Pat McCormack said active management of the dairy market by the Commission over the coming months will be critical to milk price.

He said the Commission must do absolutely nothing that would undermine milk price in 2010 as dairy farmers need a strong return if they are to recover from the 2009 disaster.

Warning that the management of intervention stocks of butter and skim milk powder will be critical, he said the ICMSA asked the Commission to review its decision to release stock from May 1 this year.

“While the market has improved, it would be much more prudent to delay the release of stocks until the end of this year at the earliest and thus ensure that the release of those stocks does not threaten milk price during the peak production period. With regard to export refunds, ICMSA again repeated its demand that these be re-introduced to aid the market recovery,” he said.