ICOS: Measures on Russian import ban welcome but lack real impact

Measures introduced by the European Commission following Russia’s ban on imports of dairy and other products from the EU were welcome but lack real impact, the Irish Co-operative Organisation Society has claimed.

ICOS said the decision to introduce Storage Aid for butter, skimmed milk powder, and some cheeses is a positive one, and may reassure the markets that product can be stored away for a number of months.

In addition, the extension of the intervention buying-in period to the end of the year may help to give the signal that the Commission is ready and willing to act if markets fall excessively. The problem, however, is that the measures lack real impact.

“ICOS was disappointed that no real consideration was given to targeted export refunds, to shift product, particularly those affected by the ban, out of the European market,” ICOS said in a statement.

“Such a bold decisive move would have demonstrated the willingness and ability to react to the politically motivated ban.”

ICOS called on the Commission to initiate the process of increasing intervention prices from their current level, back up to the level they were at a decade ago, equivalent to around 26c.

It said the Commission can initiate that process, although it would then be subject to co-decision by the council and the Parliament.

The Commission had considered the option last year as part of CAP reform, and decided against it.

“They state that they will not reopen the subject “unless things change very much in the next few weeks or months.” ICOS said. “In reality, even if the Com-mission were persuaded to initiate the process, it would take up to two years to pass the legislative hurdles, and a successful outcome couldn’t be guarantees.

“However, making such an announcement may be the demonstration on intent needed to boost market sentiment.”