The aid to private storage and intervention supports in the European dairy sector are expected to be extended.

EU Agriculture Commissioner Phil Hogan indicated earlier this week that he would bring proposals to the European Commission to extend the schemes past the deadlines of the end of September.

“I am also proposing to prolong both public intervention and private storage aid periods beyond their expiry date of 30 September,” Commissioner Hogan said, before adding he was doing so in the context of the continued ban by Russia on the importation of European food.

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“Now that we know that the Russian authorities are going to extend the ban for another year on agricultural imports, it’s important that we are proactive and continue to support producers, who will obviously have a difficult time arising from this particular ban again in 2015 and 2016,” the Commissioner said.

“I have asked the Commission to agree with proposals to continue with the measures in the dairy sector – aid to private storage and intervention levels beyond the 30 September 2015 deadline – and I’ve also asked for new measures to be agreed for financial support in the form of withdrawing product from the market for the fruit and vegetable sector,” Commissioner Hogan added.

While the proposals need to be ratified by the European Commission, they are not expected to be held up or changed.

Private storage

Figures obtained by the Irish Farmers Journal through the European Commission, reveal the quantity of dairy product which has been used since the establishment of aid to private storage.

The scheme opened in August of 2014, and in that time €13m has been spent on 36,000t of skim milk powder, 102,000t of butter and 51,000t of cheese.

Intervention price

While Commissioner Hogan is moving to extend the period of storage and intervention price, he is again not willing to rise the intervention price.

Despite calls from IFA Dairy Committee chair Sean O’Leary, Commissioner Hogan has refused to lift the price from 21c/l as he feels that is “counterproductive”.

Hogan said raising the price would lead to an increased volume of product on the market, at a time where oversupply is a contributing factor to the current dairy market woes.