Dairy sector to seek EU action on milk prices
The joint IFA/co-ops delegation, led by Agriculture and Food Minister Joe Walsh, will have a common agenda the falling income of the country's 26,000 dairy farmers.
IFA president John Dillon said since July 2001, milk prices to farmers have fallen by 10p/gal (0.28c/l), costing the average 40,000 gallon (182,000 litre) dairy farmer €5,200.
When increased costs are taken into account, the loss increases to over €10,000, which is a hit of €275 million to Irish dairy farmers, he said.
Mr Dillon said he wants the co-ops to clearly set out the supports they require and the adjustments needed to pay €1.27/gal (28c/l) in the short term, to lift milk prices as world markets recover.
He said releases of skim milk powder out of intervention should be timed during periods of shortages, and prices should be at least 105% of the intervention price if markets are to be allowed recover.
Substantial amounts of skim milk powder stocks could be disposed of while providing much needed food aid to developing countries, Mr Dillon said.
"Export refunds should be used in a more imaginative, targeted and aggressive manner, and processing aids should be raised and held at levels permitting stable trade," he said.
Mr Dillon said the bottom line for farmers is clear they cannot survive at current prices and prices must rise. They need a minimum floor price of 28c/litre (ÂŁ1.00/gal) for 2003, he said.
The IFA will be represented by Mr Dillon, dairy committee chairman Michael Murphy and general secretary Michael Berkery, while the ICOS will be represented by chairman Dessie Boylan and director general John Tyrrell, with Michael Cronin, chairman, and Noel Cawley, chief executive, representing the Irish Dairy Board. Glanbia chief executive John Moloney, Connacht Gold chief executive Michael Farrell and Carbery Milk Products chief executive Dan McSweeney will be also be part of the delegation.
ICOS, the umbrella body for the country's co-ops, has called on Mr Walsh to persuade the European Commission not to take any steps that might undermine any market recovery in the dairy sector.
Mr Tyrrell said it is vital that the market be allowed to recover to levels above intervention. The dairy industry needs stable EU supports and the actions of the commission will lead to increased market confidence, he said.
The ICOS has asked Mr Walsh to request Commissioner Fischler and his officials not to take premature steps which will damage the fragile recovery in dairy markets.
There should be no change in refunds, casein aid levels or further offers of skim milk powder from intervention, Mr Tyrrell said. In the New Year, there should be an increase in export refunds and casein aid to improve EU competitiveness.
He said it should be made clear to the commissioner that damage is being caused to market recovery every time market supports are reduced, and this is restricting the opportunity for prices to lift above intervention levels.
