Response is not robust enough

Reacting to EU Commissioner Dacian Ciolos’ announcement today that 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, welcomed the measures, but said that they fall well short of the robust response needed to undo the damage caused by the Russian embargo.

Mr O’Leary said: “It must be remembered that storage aid for butter was something the sector always had, every year, as a right, up until this year, under the previous CAP rules, and instigating it now, while it is welcome, will not be sufficient to address the massive trade distortion caused by the Russian embargo.”

With respect to the decision to extend the intervention buying-in period beyond the traditional August 31date, this also must be welcomed as a statement of support, and it 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.