Oct 7th, 2009

ICMSA reaction to Minister Smith's latest consultative initiative

The Deputy President of ICMSA, John O'Leary, has criticised Minister Brendan Smith's announcement of another consultative group to discuss the dairy sector.

'Is the minister really seriously suggesting that the setting up of yet another consultative group will improve the situation for Irish dairy farmers? The Minister and his advisers seem to derive great satisfy action from the death of milk quotas - time will prove how mistaken they were in this policy - but dairy farmers had better realise that quotas will be replaced by contracts at co-op and PLC level as well as a speculative futures market. In other words, we'll have quotas by another name but with the PLCs having the power to set the terms of a contract - always supposing that they give a contract at all. Meanwhile the commodity speculators will be invited to play with the price of milk on the futures market. This is what the Minister is offering Irish dairy farmers complete with great fanfare', said Mr O'Leary.

Mr O'Leary said that the Minister might be better advised appealing to co-ops and PLCs to recognise the upturn in the market and immediately pass back the price improvements to their suppliers.

'Markets have actually turned and that this should be reflected immediately in increased prices to dairy farmers. He said that ICMSA expects co-op boards meeting to discuss September and October milk price to raise their price by at least 2 cents per litre. Mr O'Leary cited the fact that the New Zealand auction price is up by 55%, the Northern Ireland milk price is at 26 cents per litre and the Commission estimates the average current EU price to have reached 26 cents per litre with another one or two cents per litre expected for October milk.

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