Irish producers are calling for taxpayers to subsidise a sterling equalisation support scheme to compensate them for the fall in the value of the pound which has reduced their returns from exports to Britain.
This comes just days after the European Union agreed to resume subsidies on butter, cheese and milk powder which Alf Grumble thinks requries a less diplomatic approach than the initial response from New Zealand.
Subsidies blunt market signals and will prolong the slump in prices because they’ll send artificial signals to maintain or boost production in the face of falling demand and they’ll also threaten free trade negotiations.
Both of these will harm our exporters and the wider economy.
Homepaddock 
[…] tip: Homepaddock Posted in Uncategorized. Tags: agriculture, eu, europe, export subsidies, farming, IFA, ireland, […]
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Thanks for bringing it to my attention. I am doing research on Irish dairy farming at the moment and have had a bit to do with the IFA. They seem to be sensible people who want the best for Irish farmers, and look to New Zealand as a model of efficient agriculture. But when they hit the same hardship that New Zealand farmers must continually deal with (fluctuating exchange rates), they call for the government to step in. Completely ignoring the fact that nationwide about 30% of Irish agricultural income is subsidies already – 50% for sheep farmers. I would have hoped for better from the IFA. Where on earth do they expect the money to come from in an economy where all sectors are struggling?
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[…] Zealand wants to fight off what it sees as protectionism – namely subsidies for dairy farmers in Europe. However, although there is too much protectionism out there I’m not sure our argument […]
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