ICOS stands its ground with EC on milk prices

Portlaoise: ICOS, the co-ops’ umbrella body, said yesterday it has operated a strong lobbying approach with the European Commission in 2004 and to date in 2005 on milk markets.

Director general John Tyrrell told the society’s AGM in Portlaoise that this lobbying was intensified by ICOS, with the support of the Department of Agriculture and Food, when the European Commission cut casein aid in September and October.

In this regard, he rejected comments made by Michael Berkery of the IFA in Kilkenny last week, regarding ICOS and the head of the EU milk section concerning prices.

“As a result of the intensive lobbying by ICOS on behalf of the milk sector, senior Department of Agriculture and Food officials decided to invite the Commission’s newly- appointed head of the milk section to Ireland.

“ICOS and dairy co-ops met the visiting official to outline the need for a more balanced approach in the management of the EU market supports, so that EU market prices would operate at a level above intervention, thereby ensuring stronger milk prices.

Mr Tyrrell said ICOS continues to make the case to the minister and commission for the operation of market supports to ensure that market returns are above intervention equivalent. The intervention price is supposed to be a safety net not a target price.

He said the main issue facing the dairy sector is the implementation of the Luxembourg CAP Reform. The EU Commission has cut refunds and aid levels for dairy products wherever they can and in a manner which pulls the EU price for milk products down towards intervention level.

He said the ICOS and dairy co-operatives have taken a strategic approach to preparing for the challenges facing the sector. Since its strategic review was published in April 2000, it has contributed to the Prospectus Report.

Significant consolidation and rationalisation has been advanced in the Irish dairy sector through mergers, acquisitions and cost rationalisation initiatives. Those advances have been achieved across almost the entire sector in, for example, Arrabawn; Connacht Gold; Dairygold; Kerry/Golden Vale; Lakeland/Bailieboro; Town of Monaghan and West Cork’s milk processing consolidation in Carbery.