Allister urges UK Government to raise additional support for dairy sector at Council
19 March 2009
In advance of Monday's Agriculture Council, Jim Allister MEP has written to the UK Government, asking for its support in lobbying for additional measures to assist the Northern Ireland dairy industry at this difficult time. The letters are as follows:
Ref. JA/TK/4125-2
Rt Hon Hilary Benn MP
Secretary of State
DEFRA
Nobel House
17 Smith Square
London
SW1P 3JR
19th March 2009
Re. Support measures for EU Dairy Industry
Dear Minister
I enclose for your information a copy of a recent letter I have sent to Commissioner Fischer-Boel, in relation to the current dire situation which pertains to the Northern Ireland dairy sector. Dairy farmers in my Northern Ireland constituency have been making considerable losses since last October, as World market conditions have collapsed.
I trust you will take the time to read the enclosed letter which sets out just how difficult these times are for Northern Ireland dairy farmers.
Quite clearly, current market support instruments are ineffective in being able to address the situation our farmers find themselves in.
I urge the UK Government to press for a much more effective ‘safety net’ to be put in place which will assist this sector at this time, as this agenda item comes before Agriculture Council on Monday 23rd March. The current level of export refunds are clearly insufficient, particularly in relation to milk powders for which our local industry is heavily reliant. Clearly, farmers will be unable to maintain production at current prices of 16ppl.
I look forward to hearing from you.
Yours sincerely
James H Allister QC MEP
Ref: JA/TK/EU/4198
Mariann Fischer Boel
Commissioner for Agriculture and Rural Development
EU Commission
Rue Wiertz
B-1049
BRUSSELS
Belgium
26th February 2009
Dear Commissioner
Re. Dairy market situation
I wish to draw to your attention the outcome of today’s monthly milk auction in Northern Ireland 17.8 pence per litre (ppl).
I welcome the fact that last week’s ManCom meeting did go some way in acknowledging the worsening market situation affecting the EU dairy sector. However, I believe the very modest upward revisions of export refunds does not go far enough to deal with the crisis which continues to prevail in dairying.
In my Northern Ireland constituency which is heavily reliant on exporting whole milk powder, current prices at 1250 Euros per ton equates to approximately 13.5 ppl to producers, with export refunds contributing an additional 3.5 ppl to this price. Even at their revised level, milk prices remain below intervention level, thus having little overall effect. The dairy industry estimates that export refunds on whole milk powder would need to double to over 500 Euros per ton in order to provide the desired effect of restoring stability and normality in market trading relations vis-à-vis the World Market.
It would appear that the large stockpiles of milk powder being offloaded onto the World market by New Zealand is continuing to have a destabilising effect on the ability of the EU dairy industry to export.
Thus, I remain deeply concerned at the continued persistence of low milk prices to Northern Ireland producers, which are among the lowest in Europe. Latest figures obtained from the Datum website show average Farmgate prices for December 2008 as follows: in Northern Ireland the average price was 18.59 pence per litre (ppl), compared with GB at 27.58 pence per litre (ppl), the EU average of 29.78 ppl and Finland 45.78 ppl. Clearly, such prices are unsustainable for local producers.
Therefore, I urge you to intervene by ensuring export refund levels are raised to a level which will have the desired effect.
Yours sincerely
James H Allister QC MEP
