Farming groups react negatively to agreement

Farming organisations reacted negatively to the new farm deal agreed in Brussels yesterday. The Irish Creamery Milk Suppliers’ Association was furious over the decision to increase milk quotas in the deal.

Jackie Cahill, the association’s president, rejected as "both untrue and misleading" Minister for Agriculture Brendan Smith’s claim that the deal represented a gain of €170 million for Irish farmers.

Mr Cahill said that the actual financial loss due to milk price reductions resulting from the decision to increase quota by 1 per cent per year for each of the next five years, would flood the international market with milk and lead to further price drops.