Dairy support measures to offset Russian ban not enough, says ICOS
That’s the view of the Irish Co-operative Organisation Society (ICOS), the umbrella body for the country’s co-ops.
EU Agricultural Commissioner Dacian Ciolos announced last week he was proposing to initiate private storage aid for butter, skim milk powder and some cheeses, as well as extending the intervention buying-in period.
ICOS president, Bertie O’Leary, said storage aid for butter was something the sector always had, every year, as a right, up until this year, under the previous CAP rules.
Instigating it now, while it is welcome, will not be sufficient to address the massive trade distortion caused by the Russian embargo. Extending the intervention buying-in period beyond the traditional date (August 31), was also welcome as a statement of support, and may help to bolster sentiment.
“However, the current Intervention buying-in price would deliver a milk price of 20c per litre at farm level — an almost unthinkable prospect,” he said.
Mr O’Leary called on the Commission to trigger a review of intervention buying-in prices, as was provided for under the new CAP.
On the basis of increased costs of production, the intervention buying-in price could be raised significantly, giving a realistic price floor to the market. He added the Commissioner’s apparent failure to even consider targeted export refunds for particular products towards particular markets was disappointing.
Meanwhile, COPA-COGECA, the umbrella body for European farmers and co-ops, said the Commission’s action in the dairy sector was a step in the right direction but did go far enough.
Secretary-general Pekka Pesonen said it is important to stabilise markets. Milk prices in some cases are going down by as much as 30%.
“Further action is crucial. We also need to work hard to find new market outlets for our produce and speed up promotion campaigns to stimulate new demand.”
