ICOS hits out at EU dairy refund cuts
President Padraig Gibbons said the Commission’s decision to cut butter (-5.2%) and SMP (-20%) export refunds on July 14 was excessive as it severely reduces EU export competitiveness.
He said repeated cuts in refunds are very disruptive for EU exporters.
During May and June the Commission had cut refunds and other market supports on a number of occasions to take account of the July 1 intervention price cuts and market conditions.
Mr Gibbons said repeated cuts of this type undermined the EU dairy sector’s work in negotiating export market contracts.
Exporters are not in a position to take out tendered export licenses as the Commission has rejected most of the applications over the past six weeks, in addition to cutting the refund levels.
He said ICOS is in contact with the Department and the Commission to outline the pressing need for stability in all EU milk product market supports in the months ahead.
Mr Gibbons said that if EU export competitiveness declines further or if internal markets become unstable the Commission should increase market supports.
It is essential that Agriculture and Food Minister Mary Coughlan raises these concerns with EU Farm Commissioner Mariann Fischer Boel to ensure that milk market support stability is assured, he said.
