Michael Moynihan (Cork North West, Fianna Fail)

There is a serious issue this year and farmers just got away with over-production by the skin of their teeth. Farmers took a chance because there was a view among those involved in the dairy industry this time last year that our national quota would not be reached at any stage before 2015. There are a number of issues, including the problem of capacity for dairy farms which have invested in stock, machinery and parlours, etc. A significant number of dairy stock will come into the system in the next few years and this will cause a serious problem. Even if there is only an average production year weatherwise, we will have a serious issue this time 12 months. I believe the Minister was correct to issue a warning to the primary producer, the dairy producer. However, we must get a system in place to ensure that if we are to reach our targets by 2015, we will be able to cope with the increased capacity in the meantime. The European Union must put a system in place that will allow gradual expansion.

The quota system, for all its faults, has served the industry reasonably well. However, with regard to what will happen post-2015, the industry must be examined to ensure there will be management at European and national level to ensure primary producers will be paid an acceptable price for milk at the farm gate from day one. We will probably reach the target of a 50% increase, possibly more, but we must ensure there will be markets in place and that negotiations will take place at the European Commission and nationally to ensure the place of the product we produce. We must not end up in the situation in which we found ourselves in the 2009-2010 production year when the primary producer was paid a price for milk that more or less only met the cost of production.

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