Feb 23rd, 2010

ICMSA comment on the meeting between Minister Smith and Commissioner Ciolos 

Commenting on the meeting between Minister Smith and Commissioner Ciolos, the ICMSA President, Jackie Cahill, said that Minister Smith was perfectly right to emphasise the need for the careful release of stocks built up through the operation of intervention measures during last year's price collapse. Mr Cahill said that release of even relatively small volumes would undermine any tentative recovery in prices later this year, but he pointed out that not many dairy farmers would share the Minister's optimism that such a recovery was either likely or possible. The ICMSA President said that the underlying causes of last year's collapse had not been addressed and there was no signal from either the Commission or the Department that they understood what had gone wrong and why the collapse had occurred.

 "We're still here nearly two years later, still trying to demonstrate to the policymakers the simple, unstoppable, economic truth that ensures that a surplus of 8% of supply over demand - such as we have in the EU at present - will always mean price volatility and when third country demands stops, in the manner it did last year, it will mean the kind of price collapse that wiped out dairy farmer income for the whole year. Hopefully, the Minister will realise that the kind of supply-management he's calling for in the area of release of intervention stocks must be extended to the whole area of production if stability and viability are ever to be restored to Irish milk prices", stated Mr Cahill.

Ends.       23    February 2010.

Jackie Cahill, 087-2820663

President, ICMSA

Or

Cathal MacCarthy, 087-6168758

ICMSA Press Office 

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