EU's export refunds increase welcomed

THERE HAS been a welcome from the Irish dairy sector to the EU Commission’s decision to increase export refunds for butter, skim…

THERE HAS been a welcome from the Irish dairy sector to the EU Commission’s decision to increase export refunds for butter, skim milk powder and whole milk powder.

The EU’s Dairy Management Committee said it would accept into intervention all quantities of butter and skimmed milk powder (SMP) offered while maintaining the intervention purchase prices.

For the Irish dairy sector this will mean an additional 645 tonnes of butter and 4,651 tonnes of SMP have been purchased into intervention bringing the EU totals to nearly 80,000 tonnes of butter and 183,922 tonnes of SMP.

As regards export refunds, the tender refund for butter was increased considerably, from €600 to €700 per tonne allowing for the export of an additional 1,644 tonnes. The SMP tender refund was also increased, from €220 to €240 per tonne, allowing the export of 1,793 tonnes.

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Minister for Agriculture Brendan Smith said he was pleased the market management mechanisms were now being further expanded to deal with the very difficult dairy market.

He said Agriculture Commissioner Mariann Fischer Boel had responded to the demands he had made at the farm minister’s meeting last week.

IFA National Dairy Committee Chairman Richard Kennedy said the export refund increases was a good first step to speed up an upturn in dairy markets.

Mr John O’Leary, Deputy President and Chairperson of ICMSA’s Dairy Committee, welcomed the decision.