Concerns over massive cuts in powder refunds
21 November 2006
Jim Allister MEP is alarmed at the massive cut in Whole Milk Powder refunds which were made at the recent milk management committee in Brussels. Jim Allister questions the rationale for these cuts and is concerned that the cuts may put downward pressure on the milk price paid to Northern Ireland dairy farmers next summer.
Jim Allister commented, “I am alarmed that the Milk Management Committee in Brussels has decided to cut export refunds for whole milk powder by 40%. This week the common refund for whole milk powder was reduced from €520/tonne to €310/tonne. As a large percentage of summer milk within Northern Ireland is processed into whole milk powder, these cuts may have an impact on prices paid to Northern Ireland farmers next year.
“Over the last number of months there has been a slight strengthening for dairy commodities on the world dairy market. The increase in the world market does not justify the cut in export refunds. Following recent meetings with both Commissioner Fischer-Boel and Mandelson the Northern Ireland dairy industry was informed that cuts were not as a result of World Trade talks. On this basis I am baffled to the rationale behind this cut announced by the milk management committee. I hope that the committee are as quick to increase refunds at the first sign of some weakening in the world dairy markets for whole milk powders.”
Jim Allister believes that this announcement strengthens the case for increased Government funding for the dairy sector. “It is clear that there is no future for the Northern Ireland dairy industry if we continue to rely on producing milk powders. It is vital that the Government provides a financial package for the diary processing sector to ensure they can adapt into producing other value added products such as cheese.”
