Oct 6th, 2009

ICMSA lash proposed introduction of speculators to dairy markets

The Deputy President of ICMSA has publicly questioned the ability of Minister Smith and the rest of the Farm Council to grasp the extent of the threat now facing the dairy sector and he further alleged that the absurd 'business-as-usual' attitude being adopted was now propelling significant numbers of dairy farmers to the verge of financial ruin. Mr John O'Leary dismissed the results of last Monday's emergency meeting in Brussels which proposed the setting up of a working group as 'a talking shop about another talking shop'.

'This working group has yet to be established but based on previous experiments of this type, we are probably looking at the passage of at least one year before they come forward with concrete policy suggestions. Do the Minister and Farm Council really believe that family dairy farms will last that long at a milk price which is likely to be below 25 cents a litre? The fantasies continue', commented Mr O'Leary.

The ICMSA Deputy President attended the mass demonstration in Brussels on Monday involving farmers from all over the EU that saw 5000 farmers converge on the EU offices. He said that that anger and near panic among European dairy farmers was now at unprecedented levels and was being increased by the decidedly limp response formulated by their ministers and the Commission.

Mr. O'Leary was very critical of the Minister's failure to take a more robust stance in defence of Irish dairy farmers both in Brussels and at home. He cited the Minister's complete silence on the emerging credit and financial crisis on farms where banks are increasing the pressure on farming families while flouting existing loan and credit regulations to an extent that amounts to mis-selling.

The ICMSA Deputy President warned farmers that the Commission are proposing to replace milk quotas with individual contracts between farmers and suppliers. This, according to Mr O'Leary, would give even greater power to milk purchasers to pay what they liked and to impose conditions on dairy farmers. Furthermore, the Commission are also proposing to set up a 'futures market' in milk. The ICMSA man said that this will give commodity and market speculators another opportunity to make money to the complete detriment of producers and consumers. Mr. O'Leary demanded that the Minister should state publicly his position on this remarking that he would have thought that the Irish Government must surely have learned a very cruel lesson about the role of speculators and the wreckage they invariably inflict on the common good.

'Where does the Minister stand on such important issues regarding the future of 20,000 dairy farmers in Ireland? Is he in favour of forced contract of supply and a futures market in milk for speculators or will he finally recognise the necessity for an EU-operated milk supply-management system that at least recognises the need to provide income for the family dairy farms that are the foundation stone for everything else. To date, the Minister has been silent on these matters. That will no longer do. Dairy farmers want answers now on how the Minister intends providing basic support to the milk suppliers on whom everything else depends and whose back everyone else seems to make money', concluded Mr O'Leary.

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