The European Commission has not made any formal proposal for a voluntary EU milk reduction plan, according to the Minister of Agriculture, Food and the Marine.
But Minister Martin Haydon and several of his EU counterparts said he had highlighted concerns about the future state of the dairy market at AgriFish council meetings.
At present, the European Commission has no “formal proposal” to support calls for an EU-wide voluntary milk supply reduction scheme, whereby producers would be paid “to temporarily reduce milk production for a specified period”.
The European Commission took such measures in 2016 in response to “extraordinary market pressures” at the time after the abolition of milk quotas.
The European Milk Board (EMB) has warned that record milk volumes are pushing Europe towards the “next price collapse”.
The electoral management body has repeatedly called on the European Commission to introduce a system Voluntary downsizing plan.
The Irish Dairy Suppliers Association (ICMSA) also urged Minister Haydon to support the EU-wide milk supply reduction plan.
Milk supply
According to ICMSA president Denis Drennan, “at least” seven EU member states have expressed support for a plan that would offer milk producers a price per liter for not producing milk voluntarily for a specified period.
“Dairy farmers across the state are now being wiped out by a deadly combination of milk prices falling below production costs and rising inputs, especially fuel and fertilizer,” Drennan warned.
In response to a question from Fianna Fail’s representative to Kerry, Michael Cahill, Minister Haydon said any proposed supply reduction plan would be carefully considered “in the context of current market conditions in all member states and budget availability under the Common Agricultural Policy (CAP) to ensure the most effective response to Irish dairy farmers reaching the peak milk production season”.
“My Ministry is in close contact with the European Commission and with other Member States, as well as representatives of dairy farms, regarding developments in agricultural markets.
The Minister added: “We will continue to engage constructively at EU level on any measures that will support the incomes of Irish family farms and help stabilize the market.”
