Download Fianna Fáil`s 7 point plan to address dairy price volatility Ahead of

Fianna Fáil’s 7 point plan to address dairy price volatility
Ahead of the extraordinary EU Agriculture Council meeting on Sept 7th to discuss the market
situation in agriculture and dairy in particular, Fianna Fáil is calling on Commissioner Hogan,
Minister Coveney and European Ministers to examine the following measures to address
dairy price volatility.
1: Retention of this year’s superlevy money within European agricultural sector
Superlevy funds collected from farmers by the European Commission should be reinvested
into the dairy sector as opposed to being put in the EU’s general budget. The total superlevy
amount collected in the EU is under €1 billion, with Irish farmers having to pay €69 million for
this fine.
2: Create an European TAMS dairy stimulus
Superlevy monies could be invested to secure top of the range farm infrastructure for use in
a TAMS type scheme for the European Dairy industry and act as a stimulus. Incorporating
this in such way with the recently announced EIB loan facility could be considered.
3: Greater flexibility in market intervention tools
It is imperative that consensus is reached at the upcoming EU Agriculture Council meeting to
review the current European tools for price intervention as catered for under the 2013 CAP
Regulation. Firstly, an upward adjustment of quantities should be permitted and the period
for both private storage aid (PSA) and public intervention should be extended. Secondly,
current public price intervention levels were set in 2003 and do not account for the large
increase in farming costs in this period since. EU market intervention levels should also
reflect average production costs. Such measures with an accompanying review of
intervention prices would send a strong message to the markets.
4: Fast track EU Payments
Minister Coveney must ensure that Irish farmers can avail of EU direct payments (schemes
& grants) for this year immediately. This is in order to help cash flow in farming communities
and the ongoing price volatility in milk prices.
5: Strengthen milk market observatory
The EU’s milk market observatory (MMO) needs to be enhanced and to disseminate more
accurate data to farmers and cooperatives to function in volatile market conditions. More
rapid data to the MMO would give some counter balance to the over emphasised Fonterra
controlled Global Dairy Trade (GDT).
6: Tools to help farmers mitigate volatility
To help Irish farmers counter increased price volatility, Minister Coveney must invest in
education schemes to promote knowledge transfer around futures markets, insurances, fixed
priced term contracts, risk management actions to protect the primary producer and
cooperatives.
7: Stimulating market demand
Stimulating market demand in terms of promotion, market access, and accelerated
preferential foreign trade agreements. The EU must find a pathway to a rapprochement in
trade discussions with Russia, as Irish and European farmers are suffering due to geopolitical decisions taken outside of their control.