Tony Killeen (Clare, Fianna Fail)

The Deputy is quite right to suggest that many farmers reinvested their profits on the basis of their belief that the price of milk, which was historically high in 2007 and 2008, was likely to be maintained in the medium term. To be fair, the indicators at the time suggested that was likely to happen. The Deputy made the point that the current position is unsustainable for a number of producers. It is certainly unsustainable in the long term. All the indicators are suggesting that this is a short-term blip. Farmers and others will be aware that the price of milk has always been cyclical. It has never before decreased as dramatically over a short period of time as it has recently. Nevertheless, it is cyclical. All the indications in relation to future milk prices are very positive. The availability of credit, which is a really important question for farmers in terms of sustainability, is being addressed. The Minister, Deputy Smith, has met the banks on a number of occasions to make that case strongly to them. The Deputy also spoke about the need to increase market supports. Virtually every support that had previously been in place has now been brought back into action. The Department is constantly looking at new ways of addressing the problems mentioned by Deputies Sherlock and Creed and ensuring some benefits accrue to farmers as part of that process.

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