EU report confirms ICOS fears
ICOS previously warned that milk product prices in Ireland would suffer the full impact of the proposed intervention price cuts.
It also predicted that the milk sector in other countries, which have a significantly lower dependence on butter and skim milk powder (SMP) and higher relative production of cheese and fresh products, would have a lower milk price cut.
ICOS policy director Martin Varley said this week’s EU Commission analyses forecasts that EU butter and SMP market prices would fall to reflect full intervention price cuts.
“The Commission analysis concludes that butter market prices in the EU 15 could decline by an additional 23% compared with Agenda 2000. This 23% fall exceeds the 20% increased cut in intervention prices proposed (35% Mid-term Review less 15% Agenda 2000). Likewise, the analysis concludes that SMP EU 15 Market prices could decline by 4.8%, which is more than the additional intervention price cut of 2.5% proposed (17.5%; less 15% Agenda 2000),” he said.
Mr Varley said for these reasons it should be a priority in Ireland’s negotiating position to achieve fuller compensation for the intervention price cuts.
