EU approves milk powder export refund increase
The level of the increases amounts to 13.15% in the case of skimmed milk powder and 5.61% for whole milk powder.
Agriculture and Food Minister Joe Walsh said the timely increases, which apply immediately, were a welcome boost for Irish dairy exports.
Mr Walsh said he was very pleased the European Commission had responded to developments in the international dairy market by increasing refunds for products which were important to Ireland.
The co-ops’ umbrella body, ICOS, which had called on the European Commission to increase export refunds for dairy products, welcomed the increases.
Director of Policy Martin Varley said these would offset part of the reduction in EU competitiveness as a result of the drop in the value of the dollar.
Further refund increases, however, will be needed for skim milk powder and whole milk powder if the dollar does not recover or declines further. An increase in export refunds for cheese is also needed.
“It is essential that export competitiveness be reinforced, especially in view of the increased market price volatility that is likely to impact on the EU milk market because of the CAP reform changes during the year,” he said.
Minister Walsh has meanwhile revealed that estimated fat adjusted milk deliveries to the end of December, 2003 were nearly 0.8% over the national quota. Deliveries during last month were 10% up on the same period last year.
If milk deliveries were to continue exceeding quota to this extent between now and the end of the milk quota year, milk producers would face a large super levy bill in the current milk quota year.
