Brendan Smith (Cavan-Monaghan, Fianna Fail)

With regard to dairy prices, as Deputy Collins knows and as I mentioned in my earlier comments, the dairy market has been volatile and things are difficult for producers and processors at present. We had good prices in 2007 but difficulties arose in 2008 due to the extra supply coming from New Zealand, turbulence in the global financial market and the lack of demand worldwide. New Zealand, which is a big exporter, can benefit from a favourable exchange rate. All of this makes things difficult for Irish and European producers. Prices are low in New Zealand and the US and the recession is reducing consumer demand. As I said, New Zealand benefits from having its own currency which can be devalued when necessary. It is a major exporter. Fonterra, its major processor, is the biggest exporter in the world. Thus, things are difficult for producers in terms of prices, and processors have indicated that the first half of this year will be particularly difficult.

Export refunds are applicable to butter, skim milk powder, whole milk powder and cheese. The Deputy also asked about the health check. This country has a strong dairy industry, notwithstanding the pressures on the market at present. Additional milk quota will be valuable and beneficial to dairy farmers. It will bring extra capacity to the country and will be put to good use.

See this speech in context