MARKETING AID: Farm organisations and the Irish Dairy Board expressed disappointment yesterday over the marketing aid package agreed by the EU dairy management committee in Brussels to help the industry.Under the package, skim milk powder will continue to be taken into intervention after the 109,000 tonne upper limit is reached. But a new system of fixed-price tendering for intervention will be in place on June 25th.
The Minister for Agriculture and Food, Mr Walsh, said he had emphasised to Commissioner Mr Franz Fischler the need for the continued intervention to operate in such a way that it provides maximum stability for the skimmed milk powder market on an ongoing basis.
But farm organisations expressed concern that the tendering system could lead to a lowering of the price being paid, affecting what farmers are getting for the gallon of milk they produce.
Dr Noel Cawley, managing director of the Irish Dairy Board, said the announcement was disappointing because no one yet knew what the tendering price would be.
"It introduces a degree of volatility into the situation because of the uncertainty it creates.
"It will also take some time for the export refund increases announced on other products to feed through because of the worldwide depression in the dairy markets," Dr Cawley added.
Irish Farmers' Association president Mr John Dillon was disappointed with the EU Commission's decision to stop skim milk powder intervention purchasing under the normal fixed-price system and replace it with a tendering procedure.
Mr Pat O'Rourke, president of the Irish Creamery Milk Suppliers Association, said Mr Walsh must ensure that the new tendering arrangements for intervention did not lead to any reduction in the price of skim milk powder and the milk price paid to farmers.
