ICMSA lets rip at Teagasc's milk price findings
The ICMSA has slammed the Teagasc 'Outlook 2010' report and claimed that its findings on the dairy sector were undermined by that organisation's "inability or unwillingness" to concede that milk price was now largely dependent on production levels.
"It is now generally acknowledged that the idea that EU milk prices can float free and be determined by optimistic demand forecasts, without any reference to EU production, is the kind of fantasy that left Irish dairy farmers without any income whatsoever for 2009, and is pushing them ever closer to bankruptcy at the start of 2010," ICMSA president Jackie Cahill said.
"The most depressing aspect of the Teagasc Outlook 2010 report is that they still seem unable to grasp that, in a situation where we have an EU surplus of approximately 8pc of production over demand and in the absence of export refunds, we're just not going to be able to get the price up to where farmers can have an income," Mr Cahill added.
The ICMSA leader said EU policy should therefore be targeted at matching production and demand.
"The notion that unregulated production and Indian or Chinese demand is going to take care of the rest is wrecking our sector.
"I'll repeat what [the] ICMSA has been saying for two years; when you're in a hole, stop digging," Mr Cahill concluded.