Brendan Smith (Cavan-Monaghan, Fianna Fail)

In October 2009, I announced the establishment of a dairy consultative group so that I could ascertain the views of major stakeholders in the dairy sector on issues emerging at the EU Commission's high level group on the dairy sector.

The Commission established the high level group following a special meeting of the Council of Ministers on the dairy sector last October. It is chaired by the Commission's Director General of Agriculture, comprises representatives from all member states and is examining ways of stabilising dairy farmers' incomes and improving market transparency in the future. It will deliver a comprehensive report by the end of June this year.

The work programme of the high level group has been divided into four discussion blocks. Block 1 deals with contractual relations, the bargaining power of producers and price transparency, taking into account the experience of systems in place outside the EU. Block 2 examines the appropriateness of existing market instruments and the possibility of a futures market for dairy, again in the context of experiences in third countries. Block 3 covers information on markets and products: quality, health and labelling issues. Block 4 deals with innovation and research with a view to improving competitiveness.

There have been six meetings to date out of a total of about ten planned. In addition to exchanges of views between member states, the group has heard presentations from representative organisations for producers, processors, distributors, retailers and consumers, and from non-EU countries. It has also had exchanges with leading academics and with representatives from DG Competition and national competition authorities. The next meeting on 16 March will look at block 3 issues.

The dairy consultative group is representative of the broad dairy sector in Ireland, and the organisations participating provide me with a wide range of views. In particular, the ideas, knowledge and expert opinion of the members will provide key perspectives on how the sector needs to be developed and supported into the future. The group is chaired by the Secretary General of my Department. It is following the progress of the Commission high level group and I welcome its constructive input.

For practical reasons there is a limit to how many organisations can be represented on a group such as this and all of the main farming organisations are included. I am confident therefore that the dairy consultative group as currently constituted provides a suitably broad range of views and will assist me in preparing the Irish dairy sector for its longer term future. I am satisfied that the concerns of all Irish dairy farmers are being considered in this process. However, interested parties are welcome to keep in contact with my Department on milk policy issues as they arise and to make submissions on these matters. Such submissions will be taken into account in this process.

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