ICOS seeks milk support price review

IRISH milk producers and processors face serious income losses if the EU Commission’s mid-term review of the CAP remains unchanged, according to Irish Co-operative Organisation Society (ICOS) president Dessie Boylan.
ICOS seeks milk support price review

Speaking at the AGM of ICOS, Mr Boylan said his organisation opposes the 25% support price cut, as it goes beyond the Agenda 2000 Agreement.

He said that Ireland would face a larger impact from the support price cut than most other member states.

“Full compensation should be demanded by our minister in the negotiations, as it seems that the commission is not willing to consider reversing the 15% support price agreed in Agenda 2000, which is to be implemented between 2005 and 2007,” he said.

Mr Boylan said that Ireland should receive a fodder subsidy that is equivalent to the maize and grass silage subsidies that were introduced in earlier reforms of the CAP.

Mr Boylan said that having consulted with co-ops on the issue of the proposed decoupling of the direct payment for milk, the ICOS Board supports linking milk direct payments to the level of quota a producer has each year going forward, so that the compensation will be paid to the active producer of the milk.

Mr Boylan said ICOS is very conscious of the challenges that face co-operatives as commercial businesses.

“Our competitiveness has declined over the past few years and we face a rate of inflation that is double the EU average.

"I believe that it will be better in the present circumstances to be in partnership, where we can influence policy rather than outside where farmers will have less influence,” he said.

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