Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

On the question about producer organisations, this is included in the new CAP regulations. The Commission is encouraging the setting up and recognition of producer organisations in order to improve and develop the bargaining position of primary producers. The Commission wants to use them to increase the negotiating power of primary producers versus retailers and wholesalers and so on. We intend to do this in this country and in the beef sector in particular. In our view if a structure can be put in place that is farmer-owned, that works and that is a legal entity that can negotiate price on behalf of its members, which is not the case at the moment for farming organisations, we think this will lead to a much better structured beef industry with regard to the relationship between farmer and factory.

On the three months notice question, that is a matter between farmers and their co-ops and the terms and conditions to which they have signed up. I cannot instruct co-ops on what they should do with the terms and conditions between them and their members. I understand the Deputy's point and we can look at it.

In reply to Senator O'Neill, it is not true to say that a series of countries are doing bilateral deals with Russia to avoid the embargo. There have been some conversations around beef offal as a particular issue, the importation of which Russia is looking to trying to facilitate. The position and the policy of the EU with regard to the broader embargo is that we should stick together and that there would be a collective decision on negotiation. That is what is happening. A number of weeks ago I met the Russian ambassador to discuss a series of these issues in order to make some progress on removing restrictions applying to some Irish products that are not subject to the embargo. Examples include some dairy products, such as casein. The purpose of the meeting was also to ensure that if and when the embargo is lifted we would hopefully be in a position to re-enter those markets quickly. I hope the embargo will be lifted in the not too distant future although I have my doubts because there is still a very difficult and intractable relationship between the EU and Russia with regard to the Ukraine.

Pig meat was banned for entirely different reasons long before the embargo was introduced. It was banned because of an outbreak of African swine flu in Latvia. There are other issues such as the complications that have arisen from inspections of some of our dairy plants which in our view we can answer without too much difficulty. The products that have been banned are, live animals other than pedigree animals; beef, pork, poultry, seafood, dairy products, other than products for infant formula; and lactose-free products such as vegetable, excluding seed potatoes, and fruit. In total, Europe would have exported about €12 billion worth of agrifood products to Russia and between €5 billion and €6 billion of that total is subject to the embargo, while the remaining half is not. A lot of the Irish exports to Russia could still go ahead but some have not been able to do so.

All the members have asked questions about the super levy. No Minister from any country has been more vocal than me with regard to the levy. For 18 months, if not two years, we have been talking about the soft landing policy that simply is not working for countries like Ireland, the Netherlands, Denmark and one or two others. In the past six or eight months other countries have been joining in with that concern, including countries such as Germany, which has gone from one side of the argument to the other. As a result of strong milk prices there has been an increase in milk output in Germany. Other countries are adamant that it is irresponsible to encourage more milk production at a time when milk prices are weakening, even in the short term between now and when quota ends. In their view there was an agreement that there would be a quota and that there would be a super levy for those who were over quota, until next April. The actual agreement was that in the final year of quota there would be a discussion and a decision around a soft landing. I have made that view known in a forceful way but unfortunately, countries are digging in.

Some countries are uncomfortable with the prospect of abolishing quotas. They want to keep a full quota regime in place for as long as possible and they want to discourage countries - or they do not want to be seen to be rewarding countries for over-producing in advance of the end of the quota regime. This poses a big problem for Ireland, in particular because on the lack of very strong prices up to a few weeks ago. Irish farmers were calculating a super levy fine at 28 cent a litre on the back of very high prices and some farmers were deliberately making the decision to take the hit for 28 cent a litre if it meant getting 45 cent a litre for their milk and being able to plan for expansion and easing their way out of a quota system. The problem now is that the price is changing and it is moving in the wrong direction. There has already been a significant drop in dairy prices and a super levy fine of 28 cent a litre out of 30 cent a litre for milk is a very big hit. We need to manage that situation but given the strength of feeling, I do not think there will be a compromise agreed on super levy between now and in three months time, which is what we are talking about. In the absence of that compromise we are talking to co-ops about how they could draw down those super levy payments from farmers over a period of time that would allow for a sensible approach with regard to cash flow in that period. This is the current discussion.

Everyone has known about the super levy. We have been very clear that farmers should be looking to avoid it rather than trying to factor it into their costs. I have been saying this for three years and my views on this issue are well known in the Council of Ministers. I am sure I will be expressing them again before the end of quota. However, I would not hold out a huge amount of hope that we will get a major result.

Deputy Ferris asked a question about organics. This has nothing to do with GMOs, genetically modified organisms, but it is really about managing practical things such as if product like stock or crops from a non-organic farm is brought to an organic farm the period of time to be allowed before this is considered organic. For example, if cows are brought from a non-organic farm to an organic farm which produces organic milk, under what conditions and time-frame will that milk be considered to be produced in an organic way? These are the kinds of practical definitions required to ensure a common approach to the production of organic products across the EU, as opposed to different countries applying different rules. It is a significant challenge in Ireland to produce a sufficient volume of organic dairy products, whether that is goats milk or cows milk. We have to import significant volumes of organic dairy products from the UK because we cannot produce it here - we can produce it here but farmers have chosen not to produce it. If that situation changes in the future we need to understand what farmers need to do before they can make that transition. That is my understanding of the main issues around organic farming. We have a very strong package in the rural development programme to encourage more organic farming. We have more or less doubled the funding available to support that sector but we need to get that approved by the Commission in terms of the overall RDP package.

If the Chairman is agreeable, I will deal with the stakeholders meeting under the fisheries heading. We can discuss it in detail if Deputies so wish.