Irish Dairy Sector Faces Risks Amid EU-China Trade Tensions
Source: DairyNews.today
The Irish dairy industry may become an unintended casualty in the ongoing trade tensions between the European Union (EU) and China, according to the Irish Creamery Milk Suppliers’ Association (ICMSA).
The association expressed concern over the potential impact of a newly launched investigation by China's Ministry of Commerce into alleged subsidies provided to European dairy farmers.
The ICMSA emphasized that the dispute, which centers on claims that subsidized EU dairy products are harming China's domestic dairy market, is entirely unrelated to the Irish dairy sector. However, there are fears that Irish dairy exports could be adversely affected as collateral damage.
Earlier today, the Chinese authorities initiated an inquiry into the subsidies purportedly received by the EU dairy industry. The investigation suggests that certain EU dairy products, potentially benefiting from up to 20 different subsidy programs, could be distorting the Chinese market.
One such program mentioned by Chinese officials is an Irish scheme they referred to as the ‘Dairy Equipment Subsidy Scheme.’ This appears to be a reference to the Dairy Equipment Scheme under Ireland's Targeted Agricultural Modernisation Scheme (TAMS), which supports the modernization of dairy farms.
ICMSA President Denis Drennan voiced his concerns about the potential repercussions for Irish dairy products, stating, “Irish dairy products might end up as collateral damage in a trade war that is most assuredly not of their making.” He further dismissed any notion that Irish dairy products, such as butter or milk powders, are beneficiaries of significant state support, calling the idea “comical” given the serious implications of the situation.
Currently, the Chinese investigation does not appear to directly target powdered milk or butter but is expected to affect various cheeses, liquid milk, and cream products. Despite this, the Irish dairy industry is viewing the investigation as an ominous development.
Addressing the broader accusations of state funding for the Irish dairy sector, Drennan remarked, “If you suggested to an Irish dairy farmer that they were receiving state funding towards the retail price of their product, they would laugh in your face.” He argued that, if anything, Irish government policies have acted as a hindrance rather than a help, reducing the sector's competitiveness in international markets.
Drennan warned that Irish food exports are effectively being “held hostage” in a trade dispute that bears no direct connection to their sector. The potential loss or impairment of exports, he added, would deal a severe blow to dairy farmers already struggling with low prices, challenging weather conditions, and high input costs.
In light of these concerns, the ICMSA president indicated that the association would be pressing the EU to provide compensation to farmers if the trade tensions ultimately impact the export of Irish dairy products, particularly powdered milk and butter, to China.
The ICMSA emphasized that the dispute, which centers on claims that subsidized EU dairy products are harming China's domestic dairy market, is entirely unrelated to the Irish dairy sector. However, there are fears that Irish dairy exports could be adversely affected as collateral damage.
Earlier today, the Chinese authorities initiated an inquiry into the subsidies purportedly received by the EU dairy industry. The investigation suggests that certain EU dairy products, potentially benefiting from up to 20 different subsidy programs, could be distorting the Chinese market.
One such program mentioned by Chinese officials is an Irish scheme they referred to as the ‘Dairy Equipment Subsidy Scheme.’ This appears to be a reference to the Dairy Equipment Scheme under Ireland's Targeted Agricultural Modernisation Scheme (TAMS), which supports the modernization of dairy farms.
ICMSA President Denis Drennan voiced his concerns about the potential repercussions for Irish dairy products, stating, “Irish dairy products might end up as collateral damage in a trade war that is most assuredly not of their making.” He further dismissed any notion that Irish dairy products, such as butter or milk powders, are beneficiaries of significant state support, calling the idea “comical” given the serious implications of the situation.
Currently, the Chinese investigation does not appear to directly target powdered milk or butter but is expected to affect various cheeses, liquid milk, and cream products. Despite this, the Irish dairy industry is viewing the investigation as an ominous development.
Addressing the broader accusations of state funding for the Irish dairy sector, Drennan remarked, “If you suggested to an Irish dairy farmer that they were receiving state funding towards the retail price of their product, they would laugh in your face.” He argued that, if anything, Irish government policies have acted as a hindrance rather than a help, reducing the sector's competitiveness in international markets.
Drennan warned that Irish food exports are effectively being “held hostage” in a trade dispute that bears no direct connection to their sector. The potential loss or impairment of exports, he added, would deal a severe blow to dairy farmers already struggling with low prices, challenging weather conditions, and high input costs.
In light of these concerns, the ICMSA president indicated that the association would be pressing the EU to provide compensation to farmers if the trade tensions ultimately impact the export of Irish dairy products, particularly powdered milk and butter, to China.
