Projected dairy income rise queried

CO-OPS umbrella body ICOS has claimed that the FAPRI/Teagasc projections for the milk sector are based on optimistic and questionable assumptions.

Following a detailed assessment of the analysis on the effects of the Agenda 2000 and CAP mid-term review, policy director Martin Varley said ICOS believes the projected increase in the average dairy farm income is not realistic.

In fact, dairy farm incomes would decline if more realistic milk prices and the full capital cost of expansion and the effects of inflation had been included in the analysis.