Mar 31, 2010

ICMSA welcome Kerry milk price rise but caution against reckless release of intervention stocks

The Chairman of ICMSA's Dairy Committee, Pat McCormack, warmly welcomed the Kerry decision and said that dairy markets were now beginning to regain the strength lost over the last two years. Mr McCormack said that it was no exaggeration to say that dairy farmers had never needed a milk price rise more and the Kerry decision must be considered as a vital move towards restored viability. It was now incumbent on all other Co-ops to signal to their suppliers their intention to at least match Kerry's price rise of 2 cents per litre. Mr McCormack struck a note of caution when he pointed out that although signals are becoming more positive and further rises must be considered a possibility, the recovery was still tentative and would be undermined by any reckless release of intervention stocks by the Commission.   For that reason, it was vital that Minister Smith impress upon Brussels the absolute necessity of delaying release of those stocks till later in the year and after peak production months. As far as ICMSA was concerned, continued the Diary Chairman, the underlying problems remained and unless and until the Commission was willing to confront the reality that the EU dairy market had to be actively managed, and not simply allowed to drift along in the general direction of world prices, then the possibility of another price collapse was all too real. Like other sectors, the correct conclusions must be drawn from the catastrophic mistakes of the immediate past.

Ends.      31 March 2010.

Pat McCormack, 087-7608958

Chairman, ICMSA Dairy Committee

 Or

Cathal MacCarthy, 087-6168758

ICMSA Press Office

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