With dairy markets still in difficulty ICOS continues to play a lead role on the ground in Brussels to push an effective mitigation plan in the EU.

We strongly feel that action now will be far more effective that waiting for Europe to move back towards a production peak post quota in 2015.

Currently co-operative businesses in Ireland are supporting the milk price on behalf of farmer members but still price is being reduced in line with market signals.

There has been a perfect storm of; good price, good weather and lower input costs which has driven supply to feed a growing non EU demand, but the geopolitically caused Russian trade ban has displaced product and led to a backwash of dairy across the European market depressing prices as we have not fully developed non- EU trade options, as well as overstocked Chinese powder  inventories.

ICOS pushed for, and got, during the CAP reform the retention of dairy safety nets that we to be deleted or reduced substantially in initial drafts such as PSA and Intervention.

During this market disturbance we have been very strong on opening a suite of feasible solutions the EU could enact to alleviate pressure on our co-operative dairy business, and their suppliers. Some of these suggestions have already been used by the EU such as PSA, but we need more to stop the further deterioration of prices.

We continue to look for:

• The reopening of the cheese PSA to stop milk destined for cheese being diverted to butter and powder which with put further downward pressure on these key commodities.
• The extension of PSA storage times to ensure excess product does not come onto the market during dairy peak.
• The continued EU diplomatic offense to lift the Russian embargo, with Ukraine heading back to relative stability after recent elections.
• The commission should immediately announce a simply legally enacted butterfat adjustment that would only somewhat mitigate a pointless fine that looks to be heading for over €1 billion for beleaguered European farmers.
• The EU must retain dairy superlevy fines in the industry and use the fines to pay for market supports. It is frankly disgusting that recent Commission proposals are to take these fines away from farmers at a time of largely politically caused market difficulty, and they would be then put into the general EU budget.
• These monies should be directed at targeted market supports that would help the industry such as, the extension of PSA times, higher intervention prices and even targeted export supports akin what the dairy industry in the US have with their CWT scheme.
• Further measures by the EU to open Trade routes to 3rd country markets, including the suspension of dairy export barriers to the US and Canada for the duration of the Russian ban.
• The streamlining of the dairy export certification procedure for cooperatives.