Michael Creed (Cork North West, Fine Gael)

The Minister makes much of the fact that market support measures were retained in the reform of the Common Agricultural Policy as an instrument for dealing with price fluctuations. We are currently experiencing the most severe of price fluctuations. Whereas farmers received in the region of 40 cents per litre of milk in 2007, they are now receiving 20 cents per litre. Teagasc estimates that the cost of producing milk is approximately 26 cents per litre. It is clear that the political objective behind retaining market support measures to deal with these fluctuations is not being met in the sense that farmers are still being asked to supply milk for less than the cost of production.

What has been the quantifiable return to dairy farmers in cent per litre of all the initiatives to which the Minister refers, including export refunds, aid to private storage and intervention? It is probably negligible in the sense that the price of milk has not increased above what is perceived as the current global market price. A large number of farmers will be forced out of the sector if a price of 20 cent per litre is maintained. Of necessity, this group will not comprise only small dairy farmers. It is noticeable that those who are hurting most currently have labour units on their farms and they are feeling the pinch more. What is the possibility of a more substantial level of support being provided by Europe, given Fianna Fáil's alliance with the liberals, who traditionally have been hostile to the CAP and who count Commissioner Fischer Boel as a member? What is the potential of adding 5 cent or 6 cent a litre in order that farmers can at least break even?

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