IFA take case to Brussels as milk prices hit harder

THE IFA pressed their case for an increase in the dairy intervention safety net level during discussions with members of Agriculture Commissioner Phil Hogan’s cabinet in Brussels this week.

IFA President Eddie Downey and National Dairy Chairman Sean O’Leary also called on the department officials to facilitate the use of superlevy funds to support dairy farmers.

They urged Minister for Agriculture Simon Coveney to work on achieving support from as many fellow Agriculture Council members as possible ahead of their early September meeting to deliver on both issues.

“We have made it very clear that, despite claims by Commissioner Hogan to the contrary, the majority of dairy farmers in Europe and in Ireland, are now producing milk for a price that does not allow them to break even,” Mr Downey said.

“The growing unrest among French and German dairy farmers is clear evidence of this. The current downturn is lasting longer than anyone expected, and farmers cannot take any further milk price cuts when so many are already in serious loss making situations,” Mr Downey added.

He said that a significant cause of the current prolonged market slump is the now-extended Russian embargo, which is a result of geopolitical sanctions made by the EU in the last year.

He said it was hugely unfair that farmers should be left to carry that burden, and that it is essential the EU Commission would offer additional supports to help turn markets around and help farmers cope until prices recover in addition to continuing with the Private Storage Scheme.

IFA National Dairy Chairman Sean O’Leary added: “The EU Commission must accept that first announcing, then carrying out an upward review of the intervention price levels would send a strong message to international dairy buyers that there is a limit to just how low product prices can fall.

“And it would encourage them to buy at more realistic prices again, thereby combating the negative sentiment maintained by GDT and speeding up the recovery in dairy commodity prices to sustainable levels.”