Dairy product refund cuts criticised

The IFA has criticised a European Commission decision to cut skimmed milk powder refunds by 17%, whole milk powders by 6.7% and butter refunds for all destinations except Russia by 4.3%.

Cheese refunds were also reduced.

Dairy Committee chairman Michael Murphy said the cuts were made as world dairy markets continued to strengthen. EU markets were also strong, with virtually no intervention dependence.

Dairy product supplies are at a very low ebb, with reduced US production, a continued drought in Australia and little uncommitted product available from New Zealand. EU exports are booming.