Mary Coughlan (Donegal South West, Fianna Fail)

To be exact, she stated the product mix in Ireland was causing us difficulties, which is true. This concerns the issue of butter, a fact the Deputy, as a dairy farmer, understands.

The price of milk is not an issue for me as Minister. It is an issue between the farmers, who are professionals, and the co-ops to which they send their milk. I am acutely aware of the issues that arise and the concerns expressed by the two groups, the dairy farmers and the co-ops, most particularly with regard to competitiveness. I will continue to support the necessity of the export refund mechanism in order to address some of those issues. However, in the medium to long term we will have to examine the product mix. This will not be done instantly but we will have to consider the issue. It is a big decision and one we will all have to work towards in the context of the future of the dairy sector.

With regard to the issue of scale, I did not say scale is the only way forward. It is one part of the issue, but there are other factors such as access to quota, efficiencies, issues with the co-op movement, access to new markets and new product development. The Deputy was correct to suggest the issue of research and development in the dairy sector will be vital to its future development. I have greatly supported the research and development movement in many aspects, including with regard to the university sector, the institutes of technology, Teagasc and working with the dairy sector. I agree with the Deputy it is very important for the future development of the sector.

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