The Irish Co-operative Organisation Society (ICOS) has today welcomed key aspects of the new support package for dairy farmers worth €500 million, of which Ireland will be allocated €11 million in ‘conditional adjustment aid’.

ICOS President, Martin Keane stated today that “I wish to acknowledge the role played by Commissioner Hogan in securing a significant support package for dairy farmers, despite many pressures on the EU budget. It is now vitally important that the Minister commits to matching funding so as to maximise Ireland’s allocation of €11 million, as ultimately this is a modest amount when distributed across the entire dairy farmer base.”

Mr. Keane further said “There appears to be sufficient flexibility under the ‘conditional adjustment aid’ measure to allocate the aid in a manner that can deliver immediate cash flow benefits for dairy farmers, which is a pressing concern. However, ICOS will be seeking clarity from the European Commission and Irish Government in the coming days, as the details remain unclear at this stage.”

“ICOS is disappointed at today’s announcement, which ring-fences €150 million for EU wide incentives to reduce production. Many Irish dairy farmers have expanded their production over the last 12 months in order to support their families’ future, as quotas constrained milk output in Ireland for over 30 years. In other Member States, where quota constraints were not an issue, their farmers expanded, courtesy of no super levy penalties, and now can possibly benefit by easing back slightly. This is not an equitable approach and firmly re-introduces supply management as an EU tool to manage dairy markets.”

Mr. Keane concluded “I also welcome the extension of public intervention for skimmed milk powder beyond September this year and the extension of the private storage aid schemes for SMP until the end of February next year. While, intervention is set at a low level, it has provided an important outlet for SMP in particular.”