Irish milk prices should not falter in the wake of last week’s Global Dairy Trade (GDT) result, according to ICMSA president John Comer.

“Ornua’s PPI is a much more accurate indicator of the prices that are available to Irish dairies. And this index gives no indication of dairy returns weakening over the coming months.

Last week’s GDT outcome may well be a one-off event.

“We have seen these before. And, as such, it may well have little or no bearing on the tone of Irish milk prices over the coming months.

“We analyse in depth all the indicators that reflect the tone of international dairy prices. However, the PPI has held firm. And this must bode positively for Irish farm-gate milk prices over the coming months,” he said.

‘CAP review a key challenge for the Irish dairy sector’

Looking at the longer term, Comer identified the next review of the CAP as a key challenge for the Irish dairy sector.

“We want to see a CAP which is less bureaucratic.

“But, above all else, we want to see a CAP that is adequately funded. We will not tolerate any cuts in the national funding levels available through CAP over the coming years.

There is also a requirement to introduce a GLAS scheme that works for dairy farmers. The current measures do not provide parity of esteem across the various farming sectors.

“And if it means re-distributing funding levels that give milk producers a better deal, so be it,” Comer said.

The ICMSA President recognises that the UK’s departure from the EU will leave a hole in the current CAP budget.

“All member states, not just Ireland, may have to make an additional contribution to the kitty, so as to make up for the envisaged funding shortfall.

“But the reality is that the CAP continues to provide EU consumers with tremendous value for money. It’s up to the EU Commission to communicate this reality to tax payers throughout Europe,” he said.