ICMSA warns against EC releasing intervention dairy stocks too early

THE recent recovery in dairy markets could be undermined by the European Commission prematurely releasing stocks from intervention, the Irish Creamery Milk Suppliers Association (ICMSA) warned yesterday.

ICMSA Dairy Committee chairman Pat McCormack said the recovery in the markets is still far too tentative to even consider the release of stocks over and above what was agreed under the Food for Deprived Persons Scheme.

“Farmers are only now beginning to see the benefits of the improved markets and haven’t even begun to clear the mountain of bills built up since 2009,” he said.

McCormack said it is important dairy markets experience a sustained period of strong prices so milk suppliers can begin to pay their debts.

“It is far too early at this stage to consider a release of dairy intervention stocks and risk tipping the price downward again,” he said.

McCormack said the ICMSA insists that nobody indulges in any more fantasies about there not being a connection between the supply of dairy products in the market and the price paid to farmers.

“We listened to that nonsense for the last two years and it nearly bankrupted the whole EU dairy sector,” he said.

McCormack said if the recovery was to continue at a steady pace it was crucial nothing was done to disturb the delicate balance being reintroduced in a context where there is still a substantial structural surplus within the EU of supply over demand.

Primary producers were devastated by the price collapse caused by the destructive quota expansion policies pursued by the EC and the Department of Agriculture and Food over a two-year period. Milk suppliers’ incomes were wrecked and huge debt was accumulated.

“More than anything, milk suppliers need a sustained period of strong farm-gate milk prices and anything that threatens the achievement of those kinds of prices is going to be opposed ‘tooth and nail’ by the ICMSA.

“The EU’s milk suppliers are only just through the darkest phase in recent milk production history and have no desire to return to that situation ever again,” he said.