ICOS calls for higher export refunds
It said the increases are necessary to offset the effects of the decline in the value of the dollar against the euro and relatively poor prices which have reduced casein returns.
Director general, John Tyrrell said ICOS welcomed the recent European Commission decision to increase the skim milk powder refund. But it was not adequate to ensure EU export competitiveness.
ICOS has also called on the Government and the EU to maintain strong opposition to the WTO draft proposals on agriculture. Policy development director Martin Varley said the proposals to eliminate export refunds over a five to nine-year period from 2005/06 are particularly disproportionate.
It has been estimated that the elimination of export refunds in the milk sector could reduce EU milk prices by around 30%.
In addition, the proposal to double low tariff minimum access markets to the EU from 5% to 10% of EU consumption would displace 5% of EU quota from the markets.
“These reductions, combined with the proposed reductions in EU tariff of 40% to 60%, depending on the products, would severely undermine the EU milk price support system Mr Varley said.
