May 19, 2010

ICMSA issue warning on release of dairy intervention stocks

The ICMSA have again expressed their concern that recent recovery in the marketplace for dairy products could be undermined by a premature and ill-considered decision to release stocks from intervention. The Chairman of ICMSA's Dairy Committee, Pat McCormack, was speaking in advance of Thursday's (20 May) meeting of the EU Commission's Dairy Management Committee and he is adamant that the recovery is still far too tentative to even consider the release of stocks over and above what was agreed under the Food for Deprived Persons Scheme. The risks of tipping the price downwards are still far too real, according to Mr McCormack.

"Farmers are only now beginning to see the benefits of the improved markets and haven't even begun to clear the mountain of bills that have built up since 2009. It's so important that the dairy markets experience a sustained period of strong prices so that milk suppliers can begin to pay down their debts and it is ICMSA's strong view that it is far too early at this stage to consider a release of dairy intervention stocks and risk tipping the price downwards again. We insist that nobody indulges in any more fantasies about there not being a connection between the supply of dairy products in the market and the price paid to farmers. We listened to that nonsense for the last two years and it nearly bankrupted the whole EU dairy sector", stated Mr McCormack.

The ICMSA Chairman pointed out that if the recovery was to continue at a steady pace then it was crucial that nothing was done to disturb the delicate balance that was being re-introduced in a context where there still existed a substantial structural surplus within the EU of supply over demand.

Ends.     19 May 2010

Pat McCormack, 087-7608958

Chairman, ICMSA Dairy Committee

Or

Cathal MacCarthy, 087-6168758

ICMSA Press Office.

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