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Dairy sector worried over CAP reforms

The milk sector has warned of 'disaster' for dairy farmers here if the Fischler CAP reforms are accepted.

Seven agriculture groups united in Dublin this afternoon, ahead of tomorrow's meeting of EU Ministers in Luxembourg.

The groups have called for full compensation to be paid for cuts in the price of milk.

There are 27,000 dairy farmers here and a further 7,000 are employed in processing the milk.

But the current Fischler proposals are estimated to cut the market value of Irish milk by 28%.

Compensation is being offered - but only at the rate of 55%. That leaves a net loss of €183m a year.

A loss on that scale would be devastating for farmers and useless for consumers, according to farm and business groups.

Commissioner Fischler is expected to table amended proposals, and agreement on the radical reform package could be agreed this week – or later this month.

The groups are also warning that the Fischler proposals could hit jobs in the processing and agri-related businesses.

The dairy sector groups say they are the only ones being singled out for cuts in the Fischer proposals.

They are warning that the rural economy in many parts of the country will be undermined if they do not get full compensation.