ICOS wants refunds for dairy products

THE recent weakness in the prices for butter and skim milk powder on EU markets is forcing down milk product returns for dairy co-ops, ICOS said yesterday.

ICOS president Padraig Gibbons said the market price for butter is at intervention level and skim milk powder prices could also reach this point.

Co-op market returns for butter and skim milk powder have fallen by around 3c/litre since 2004.

Mr Gibbons said the EU must increase export refunds for dairy products. Otherwise, market imbalances will lead to higher sales to intervention, destabilising the market.