Tony Killeen (Clare, Fianna Fail)

On milk prices I point out that since last November when it became apparent that dairy commodity prices were in decline internationally from the record prices of only 12 months earlier, the Minister for Agriculture, Fisheries and Food, Deputy Brendan Smith, has been in close contact with the EU Commissioner for Agriculture and Rural Development, Ms Mariann Fischer Boel, and has been very active at the Agriculture and Fisheries Council to press for the activation of dairy market supports. These had been suspended since 2006 because of the historically high milk prices which prevailed in the intervening period. The Commission has taken a series of measures with a view to stabilising the market, commencing with the introduction of an aid scheme for the private storage of butter, some two months ahead of the normal date. This scheme remains in place and has already supported the storage of some 96,000 tonnes of butter.

In January export refunds were re-introduced for butter, cheese, skimmed milk powder and whole milk powder and this has enabled the export of considerable volumes of dairy products. In March, public intervention for butter and skimmed milk powder was opened. When the agreed intervention limit was reached the Minister, Deputy Brendan Smith, obtained the Commissioner's agreement for the continuation of these schemes under tendering arrangements at close to intervention prices. To date, some 81,000 tonnes of butter have been intervened with a further 202,000 tonnes of skimmed milk powder having been purchased into stock. In all, some 20,000 tonnes of butter and 27,000 tonnes of skimmed milk powder from Ireland have been stored under the schemes.

At the EU Council of Agriculture and Fisheries Ministers on Monday the Minister, Deputy Brendan Smith, again stressed the need to take further steps to assist in reversing the downturn and stimulating the market further. For example, intervention purchases of butter and skimmed milk powder are due to close at the end of August and the private storage scheme for butter shortly beforehand. The role that private storage plays in particular, but intervention too, is such that their continuation after the normal end dates will be crucial in preventing further market turbulence at a time when supplies would otherwise hit commercial markets. The Minister also called on the Commissioner to increase export refunds for butter and skimmed milk powder even further and to suspend the free at frontier price for cheeses enabling cheeses products to avail of export refunds. The dairy sector will remain at the top of our agenda in the coming months.

The Deputy referred to proposed reductions in farmer payments. However, he may not be aware that following representations from Ministers from several member states including the Minster, Deputy Brendan Smith, the EU Commissioner agreed to allow for an advance payment of 70% with effect from 16 October under the single payment scheme.

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