10c/l drop in milk price equates to €500m rural hit - ICOS

A 10c/l drop in the 2014 milk price could hit the rural economy by €500m, the president of ICOS has stated.

Speaking before the Joint Oireachtas Agriculture Committee on Tuesday, Martin Keane said that a “perfect storm” in the domestic and global dairy markets is affecting dairy farmers’ here.

“We have been hit with a perfect storm of negativity,” Keane said. Keane added that should milk prices fall by 10c/l on peak 2014 prices, the rural economy could lose out by €500m.

Keane urged the Agriculture Committee members to help them in finding a solution to the impending superlevy bill.

“We need to find a resolution to the superlevy bill,” Keane said before adding that changes to the butterfat adjustment could cut the country’s superlevy bill by “one third”.

Last week, Agriculture Minister Simon Coveney said, however, that there would be no butterfat deal to reduce the country’s superlevy bill.

Keane also called for a lifting of intervention prices to support dairy prices. Intervention prices currently stand at 21c/l and calls have been made to raise those to 27c/l.

At the same meeting, Bord Bia chief executive Aidan Cotter confirmed that Ireland is now exporting dairy products to 137 countries with a value of €3.8bn.