IFA pushes for milk price challenge
“Systematic aid and refund cuts by the EU Commission have denied farmers any benefit from strong world markets and improvements in the US dollar exchange rate.
“They have also speeded up the pace of support reduction planned under CAP reform.
“Sharply reduced budgets could prove insufficient if markets were to disimprove, and farmers are fearful of what they are seeing ahead,” said Mr Dillon, who was leading an IFA delegation to a meeting with the minister.
IFA Dairy Committee chairman Michael Murphy said Ms Coughlan must also seek strong support from fellow ministers in the EU Agriculture Council for a review of the 2006 dairy budget.
He said she must demand that CAP reform provides for a smooth transition to lower supports, not premature sharp price cuts which would be very damaging for dairy farmers’ incomes.
The ICMSA, meanwhile, warned any co-op cutting milk price will not be responding to an economic necessity.
Dairy Committee chairman Dominic Cronin said an objective look at market fundamentals shows that co-ops are perfectly capable of holding their price.
Following a meeting between the Irish Dairy Board and ICMSA, he said there was no reason for continuing uncertainty in milk price.
Mr Cronin urged co-ops to take a long term view of price trends.
