ICMSA calls for EU emergency milk fund to be maintained for next year

THE €300 million emergency milk fund introduced by the European Union to assist struggling dairy farmers should be maintained for 2011, according to the Irish Creamery Milk Suppliers Association.

ICMSA dairy committee chairperson Pat McCormack said 2009 will live long in the memory of dairy farmers as a disastrous year.

It is essential that the policymakers at EU level maintain the maximum number of support measures for dairy farmers that might allay the worst effects of that kind of destructive volatility, he claimed.

“While the milk fund was tiny relative to the losses suffered by dairy farmers in 2009, it is still important that it is maintained,” said Mr McCormack, adding that as of now the dairy policy being pursued by the EU will not address volatility and the proposals from the High Level Group are unlikely to lead to any positive developments for dairy farmers.

IFA dairy committee chairman Kevin Kiersey has meanwhile called on co-ops to pay a milk price top-up to producers on the basis of stronger dairy markets than the co-ops had anticipated.

He stressed that because of market nerves in the summer, the co-ops did not fully reflect the strength of market returns in the peak months which justified a producer price of 30c/ltr plus VAT.

Mr Kiersey said it is clear most co-ops are operating on an excessive processor margin of 6c/ltr and in some cases more.

“Therefore, a top-up milk price payment to producers is now fully justified and producers are entitled to the money held back by co-ops over recent months,” he said.