Dairy chief says €280m aid deal for farmers is 'inadequate'
A €280m emergency aid package to boost Europe's struggling dairy sector has been branded a "totally inadequate response".
The European Commission yesterday confirmed it will deliver the additional cash injection to help the sector cope with the crisis caused by a dramatic slump in milk prices. The extra funds will be distributed based on the level of each member state's dairy production, with Ireland expected to receive around €11m as it produces around 4pc of the EU total.
Jackie Cahill, president of the Irish Creamery Milk Suppliers' Association, pointed out the €11m cash injection would only mean an extra €560 per farm.
He stated farmers would also have to wait until next year for the money as it comes under the 2010 agriculture budget.
"It is a totally inadequate response with the income situation we have. It is not going anywhere near solving the crisis," he said.
Crisis
The Irish Farmers' Association welcomed the €280m as recognition of the serious crisis afflicting dairy farming. "Farm families are facing the worst income situation in a generation," said IFA president Padraig Walshe.
EU Agriculture Commissioner Mariann Fischer Boel said it was time for the sector to act together as she announced the direct supports at a meeting of farm ministers in Luxembourg.
However, Mr Cahill said protests by dairy farmers would continue. Farming bodies have warned milk prices have halved from a high in 2007, leaving many facing bankruptcy.
The European Court of Auditors recently stated the price paid to farmers for milk is likely to fall by a further 10pc over the next decade as the milk quota system is abolished.
Agriculture Minister Brendan Smith said there must be a need for flexibility in the manner in which this new fund would be administered by individual member states. The delivery of the €280m will have to be approved by EU finance ministers next month.
Ireland had joined 20 other countries in calling for direct support.
See Farming
- Louise Hogan and Declan O'Brien
Irish Independent
