Casein decision ‘extremely damaging’

A DECISION by the European Commission to cut casein aid level by 52% was described as excessive and extremely damaging by the Irish Co-operative Organisation Society (ICOS), the co-ops umbrella body.

Director general John Tyrrell said the ICOS had set out its opposition to a casein aid cut in a meeting with Agriculture and Food Minister Mary Coughlan and her officials earlier this week and on a number of occasions to the Commission. He said the Commission maintained the cut was justified due to budget pressures, increased casein production and strong markets.

However, Mr Tyrrell said the reduction is not justified on the basis of market returns, especially when the relative weakness of the US dollar is taken into account.

He said the aid cut is equivalent to around six cents per gallon of milk processed into casein, which will seriously undermine returns from the product this year.

Mr Tyrrell said it is essential Ms Coughlan and her officials raise their concerns with the Commissioner for Agriculture Mariann Fischer Boel to oppose such cuts.

He said the minister should seek commitments from the Commission that it will not cut casein aid any further in 2005 and if markets or the exchange rates decline that the aid levels will be increased.

ICOS was also disappointed with the Commission’s decision to cut exports refunds for cheese by 10% and refunds for whole milk powder by 6%. The society welcomed the Commission’s decision to compensate for butter put in private storage before July 1.