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The Irish Creamery Milk Suppliers Association (ICMSA) is calling for compensation from the European Union (EU) to dairy farmers affected by an incoming trade dispute with China.
It comes after China’s ministry of commerce launched an anti-subsidy investigation into dairy products coming from the EU.
Regarding the complaint, China named 20 subsidy schemes from member states including Ireland, Austria, Belgium, Croatia, Czech Republic, Finland, Italy and Romania.
This is the second investigation into Chinese imports from the EU this year after the pork sector was also targeted in June.
Reacting to the news, ICMSA president Denis Drennan said that “yet again” Irish dairy products might end up as “collateral damage” in a trade war that was not of their own making.
“I think if you suggested to an Irish dairy farmer that he was in receipt of State funding towards the retail price of his product, he or she would laugh in your face.
“If anything, the Irish Government’s policies work as a penalty in our sector and so far from aiding they actually deduct from our ability to sell successfully abroad.”
Effects
The focus on the Chinese investigation will be on various types of cheeses (fresh cheese, curd and blue cheese), some milks and creams intended for human consumption.
It will last one year, but may be extended for up to six months, putting the value of Irish dairy exports to China, which stood at €420m in 2023, at risk.
Tit for tat
Dairy Industry Ireland (DII) is echoing claims that the move appears to be a tit-for-tat response to the EU putting tariffs on Chinese electric vehicles to protect the EU auto market.
DII director Conor Mulvihill is calling on the European Commission and the Irish Government to work quickly to resolve the investigation.
“The Irish dairy industry produces and exports in full compliance with EU and WTO rules,” he said.
However, Mulvihill believes the Irish cheese sector is diversified enough to negate the drop in exports to China.
“At present, the Chinese complaint relates to a subsector of dairy products, such as cheeses, and most of our cheese exports are directed to the UK and EU markets."
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