Export refund cuts a ‘disgrace’

The ICMSA yesterday described a decision by the EU Commission to cut export refunds on butter by 3.8%, skimmed milk powder by 5%, whole milk powder by 4.3% and cheese by 10% as a disgrace.

Deputy president Jackie Cahill said dairy farmers were receiving over 2.8c/ltr (10p/gallon) more in milk price in 2001 than now they are this year and as a result have seen their incomes fall drastically. Markets have been recovering and farmers expected milk prices to improve to help recover the losses incurred. But the cut in export refunds undermines the chances of a significant price increase, said Mr Cahill, who called for a reversal of the decision.