Coveney wants EU to offer more

The European Commission has been urged by Agriculture Minister Simon Coveney to take further action on dairy market support measures. 

He said he had asked Agriculture Commissioner Phil Hogan to give serious consideration to an intervention price increase.

“There can be no doubt that softening of global dairy markets has had an impact on dairy farmers in Ireland and throughout the EU and the possibilities remain for this to continue,” said Mr Coveney.

“In such context, the full range of measures should be under consideration in terms of any possible response.”

Mr Coveney welcomed a decision by Mr Hogan to extend the timeframe for intervention beyond September 30, something he had been seeking.

“I have also asked the Commission to look at increasing both the volumes eligible and price paid for intervention to a level that provides a realistic safety net.

“It is important to use the full range of market measures available and for the Commission to act early and decisively to put a price floor in place where appropriate.”

IFA dairy committee chairman Sean O’Leary said the commissioner’s decision to extend the duration of the aid to private storage and intervention past September 30 was helpful, but insufficient.

“The private storage scheme has been in strong use, especially for butter, and is undoubtedly helping to hold prices from collapsing to current intervention levels,” said Mr O’Leary. “However, it has not halted the continued slide in EU dairy returns.”

Mr O’Leary said in the current context of extreme volatility, with low dairy returns lasting much longer than expected, there is no doubt the Commission is fully legally justified in announcing and starting an immediate review of intervention prices.

He urged Mr Coveney to lobby fellow European agricultural ministers to pressure the Commission to urgently begin this review of the dairy intervention “safety net” level.” Mr Hogan, speaking in Brussels last week, said some voices claim that increasing intervention prices is the solution.

“In my view, this would be counter-productive,” said Mr Hogan. “Indeed, in a situation where production quotas no longer exist, it is of paramount importance that farmers and economic operators follow market signals.

“Let me also say and be very clear about proposals to increase intervention prices — this would do nothing but delay the inevitable and necessary adjustment and make it more painful.”