SMP Intervention Tender Proposal Should Be Linked To Milk Price. – ICMSA.
The proposal signed off by national officials on the 4 December to give the EU Commission full control over the quantities of SMP accepted into intervention in 2018 represent a major overhaul of the price supports in place for the dairy sector and are a step too far according to Mr. Gerald Quain, Chairperson of ICMSA’s Dairy Committee and need to be amended to take account of market volatility.
As it stands, the proposal gives the EU Commission complete control over whether to accept SMP into intervention in 2018 or not. In the context of the current stocks in intervention and the purchase of SMP into intervention in 2017, ICMSA can understand the EU’s concern on this matter but ICMSA believes that the proposal should be amended with a clear link to the prevailing milk price being paid in the EU. At present, there is absolutely no link with milk price and this is a huge concern for farmers. What ICMSA is proposing, Mr. Quain said, is that intervention for SMP should be automatically triggered with the current 109,000 tonnes limit when the EU milk price falls below 30 cents per litre (based on Irish base constituents).
Such a proposal would meet the EU Commission concerns in relation to stock build up while at the same time, provide farmers with a level of certainty that supports will be available in the event of a market downturn. While milk prices remain in a positive position, nobody can predict the future and ICMSA believes that the current proposal is a step too far and that a link with milk price must be included in the proposal and we have written to the Minister for Agriculture, Food & Marine on this matter, concluded Mr. Quain.
Gerald Quain is at (086) 3623041
ICMSA Head Office (061) 314677