Dairy farmers await boost in prices

Ireland: Dairy farmers were hoping yesterday that a European Commission decision to increase aid for skim milk powder (SMP) used for casein production will boost the prices they are being paid for milk supplies.

Agriculture and Food Minister Joe Walsh welcomed the decision to increase the aid by over 14% from 5.86/100kgs to 6.70/100kgs.

He said the Commission had responded with speed to his recent request for an increase in the aid rate, which he had made following discussions with the industry.

Minister Walsh said he had discussed the matter with EU Farm Commissioner Franz Fischler earlier this week.

"This increase should stimulate increased production of casein and go some way to improving returns for operators on international markets.

"Casein is a valuable alternative to SMP production and this increase is particularly welcome given the negative effect of recent movements in the euro/dollar exchange rate," he said.

IFA Dairy Committee chairman Michael Murphy said the decision to increase casein aid to 67/tonne of skimmed milk was good news for co-ops and processors and would help milk prices.

"This significant increase in the processing aid will help make EU casein more competitive on export, at a time when little product is available from our Australasian competitors.

"This is good news for Irish co-ops and will help milk prices," he said.