THE EU will allow national governments to directly aid their farmers, according to a report on the dairy industry published yesterday.
Pledging to use intervention, private storage aid and export refunds to help the struggling industry, the plan also notes overproducing farmers may be levied to finance voluntary retirement from milk production.
The report opened the possibility of giving aid or loans of up to €15,000 to struggling producers and said member states could redirect a certain amount of direct payments between farmers and sectors.
It also suggested cash from the rural development funds could be used for early retirement, investment support, payments to farmers in less favoured areas, support for environmentally-friendly forms of milk production and animal welfare practices.
However, it ruled out the possibility of any cuts or a freeze in the EU milk quota system and noted production in Europe is 4.2 per cent below quota.
Irish Farmers Association dairy chairman Richard Kennedy said some of the measures would help support markets but said the use of State funds was a retrograde step which would discriminate between dairy farmers in different member states and would undermine the foundation of the Common Agriculture Policy.