The IFA National Dairy Committee Chairman also welcomed the move and said it could help plot the way into the post-quota era for dairy farmers.

He said that along with co-ordinating a strategy for the growth of the dairy sector, the forum's two main areas of focus should be farm profitability and managing income volatility.

He added that the IFA would take full part in the forum to influence its activity in these directions.

He said that while it now seems that the fall in milk prices and incomes for 2015 "may not be as severe as first thought", it will remain a "very challenging year of low milk prices, relatively high costs, superlevy fines and hefty tax liabilities."

He added that "coupled with farmers’ investment commitments, both on farm, and to support the development plans of their co-ops, this year will be very challenging for most dairy farmers.”

He also said it is crucial that Simon Coveney and EU Agriculture Commissioner Phil Hogan work hard in Brussels to obtain the prompt delivery of the proposed 3-year extended payment scheme for superlevy.

"Both men must also initiate a review of EU market supports, to ensure they are revalued to keep pace with production costs,” he said.

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Coveney expected to launch new dairy forum