Jack Wall (Kildare South, Labour)

I thank Deputy Naughten for giving me the chance to contribute. Dairy farmers' incomes are under severe threat due to a combination of a fall in milk prices and increased costs. The fall in milk prices is due to a number of factors. The principal factor in recent times has been the massive cuts in market supports. Since January of last year, the EU Commission has used every opportunity to cut dairy market supports. Casein production has been cut by 88% and SMP export refunds have been reduced by 77%.

Unless there is definite political direction by the EU farm Council, the EU Commission will bring about a collapse in EU dairy product prices down to the so-called intervention prices set by the mid-term review agreement. These prices were never intended as normal market prices but were set as doomsday prices when the Commission would be forced to act. If these prices were to come about, profitability in dairying by 2007 would be virtually non-existent. The Minister, who has already raised this issue at the farm Council, must make this a priority for Ireland at EU farm Council meetings.

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