Lifting dairy intervention prices to deal with the weakness in the global dairy trade would be “counterproductive”, EU Agriculture Commissioner Phil Hogan has stated. Speaking in Brussels on Tuesday, Commissioner Hogan said that the European Commission already has a “toolkit” of measures in place to support dairy farmers through this difficult period.

“Some voices claim that increasing intervention prices is the solution. In my view, this would be counterproductive. Indeed, in a situation where production quotas no longer exist, it is of paramount importance that farmers and economic operators follow market signals,” Commissioner Hogan said.

Hogan said that the lifting of intervention prices would result in an increase in dairy production at a European level and would lead to more of an oversupply of dairy products on the global market.

“Let me also say and be very clear about proposals to increase intervention prices – this would do nothing but delay the inevitable and necessary adjustment and make it more painful.

“As we move towards a market-orientated policy, such a move would give the wrong signal.

“There is a need to change our mindset: the goal is not to produce as much as we can, but as much as we can find a market for.

“While I accept that there are short-term difficulties being experienced in the milk sector, essentially due to temporary oversupply, I believe that we should concentrate our energy in helping the European dairy sector reap the full benefit of long-term positive prospects in terms of world consumption,” the commissioner concluded.

The IFA has rejected Commissioner Hogan’s comments and again has made the case for lifting intervention prices from the current level of 21c/l to closer to 25-26c/l.