€900m payment for milk farmers to come early

IRISH milk farmers are set to receive €900 million in single farm payments in mid-October rather than in December in recognition of the tough times farmers in the sector have been going through.

The European Commission announced the early payment yesterday as farmers demanded that EU schemes to subsidise butter and skim milk powder for pastry, ice cream and animal feed be extended to shore up demand for milk.

Dairy farmers from across Europe clashed with police in Brussels yesterday.

Dairy prices have dropped by almost a half in the past few months because consumers have switched to cheaper alternatives because of the economic crisis.

Up to a thousand farmers protested outside a meeting of EU agriculture ministers in Brussels yesterday while in Dublin Fine Gael MEP Máiréad McGuinness joined a protest outside the European Commission’s office.

IFA president Padraig Walsh, who was in Brussels to meet Agriculture Commissioner Marian Fisher Boel, said that action needed to be taken immediately to alleviate the situation for dairy farmers.

The issue was put on the agenda yesterday by France and is being supported by Ireland’s Agriculture Minister Brendan Smith.

The Commission in January introduced subsidies for skimmed milk power for use in animal feed and for the powder and butter to be bought into intervention. The scheme is due to run out in August but ministers say it must be extended.

Countries are also concerned about the planned annual increase by 1% a year of milk quotas and several want this delayed in the lead-up to full liberalisation in 2015.

However, Commissioner Boel does not want to suspend the gradual quota increase saying that they are not to blame for the poor demand and low prices.

Instead she said that farmers should respond by producing less milk in response to the drop in demand from consumers.

But Ms McGuinness said if prices remain depressed for the entire production season it could result in severe losses and even the collapse of some farms given the added difficulties with the lack of credit facilities.

“I have written to the commission saying we need more market support, not less, for all agriculture commodities because family farming cannot withstand the volatility which has become a feature of markets in recent years.”