Plea to EC on milk market supports
ICOS policy development director Martin Varley said it has met with commission officials and the Department of Agriculture and Food outlining the need for improved EU export competitiveness.
It had also highlighted the need for stability in dairy market returns, which have been adversely affected by the ongoing weakness of the US dollar and reductions in market supports.
Confirmation of the lobbying came as dairy farmers called on the country’s co-ops to halt milk price cuts and tackle their own costs.
Processors have blamed reductions in EU supports arising from the implementation of the Common Agricultural Policy reforms for the pressure on milk price.
Mr Varley said ICOS has impressed on the commission that a 52% casein aid cut in February has put downward pressure on casein returns.
It has had discussions with the commission on its method of calculating market supports and it has outlined its opposition to the frequency and scale of the cuts.
In particular, ICOS has outlined its views to the commission on the prices and costs used in calculating market supports.
Mr Varley said ICOS is concerned that spot market prices for casein are not a good indicator of prices, as longer-term contract prices are at lower prices.
“ICOS pointed out that processing and marketing costs have increased in recent years due to higher energy, insurance and labour costs.”
