March 24, 2010

 

Irish farm groups call for delay in release of dairy products from intervention
 

 

Ireland's farm leaders have stepped up their demands on the European Commission not to release dairy products from intervention stocks onto the market until later in the year at least.

 

They want the stocks held in intervention to ensure the markets are not disrupted so that the price paid to suppliers is not undermined. Uncertainty over EU market management, particularly the management of intervention stocks, created unnecessary nervousness and price weakness in January and February.

 

The Irish Creamery Milk Suppliers Association (ICMSA) said it raised the question of the timing of the release of intervention stocks with the European Commission's milk policy head Thorkild Rasmussen when he addressed a recent Irish Co-operative Organisation Society (Icos) organised meeting of dairy industry leaders in Horse and Jockey, Co Tipperary.

 

Dairy Committee chairman Pat McCormack said active management of the dairy market by the Commission over the coming months will be critical to milk price. He said the Commission must do absolutely nothing that would undermine milk price in 2010 as dairy farmers need a strong return if they are to recover from the 2009 disaster.

 

Warning that the management of intervention stocks of butter and skim milk powder will be critical, he said the ICMSA asked the Commission to review its decision to release stock from May 1 this year.

 

"While the market has improved, it would be much more prudent to delay the release of stocks until the end of this year at the earliest and thus ensure that the release of those stocks does not threaten milk price during the peak production period. With regard to export refunds, ICMSA again repeated its demand that these be re-introduced to aid the market recovery," he said.

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