Brendan Smith (Cavan-Monaghan, Fianna Fail)

There is a provision in the Health Check for a review of its measures in 2010. Some member states have proposed that this review be brought forward to 2009. As I said, I do not support this proposal. We must be careful not to send out a message that Europe is chopping and changing policy. That would lead to instability. We must look to the situation of the processor or individual farmer who intends to invest and provide additional on-farm facilities. The political analysis that has been done in regard to the long-term demand for dairy products is favourable. The Food and Agriculture Organisation has provided detailed analysis of the potential of the dairy market to expand.

One simple statistic is that the world population is increasing by more than 6 million per month. Prior to the economic turmoil that has been with us for almost a year, there was growing affluence in the world. There has been a change in the dietary requirements of people in the huge population blocs of Asia, China and India. India and China have populations in excess of 1 billion, and new markets for dairy products have emerged in these countries. We have reached a crunch period. The upward trajectory in prices that we saw in 2007 was followed by a decline in global demand because of the credit crunch and the lack of disposable income in the international community.

The Health Check is the proper mechanism under which to address these issues. Ireland has the capacity to grow its dairy industry, and the medium to long-term outlook is positive. This is not to minimise the serious difficulties currently faced by the industry, as referred to by Deputies Creed and Sherlock.

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