Simon Coveney (Cork South Central, Fine Gael)

There are two issues involved. First, we cannot allow a situation to develop where there will be a dramatic increase in milk production and a collapse in its price because we do not have markets for it. That would be a disaster. This problem needs to be dealt with as part of a soft landing solution in terms of the ending of the quota system. We are working to achieve this through the food harvest implementation body and working with State agencies such as Bord Bia which is working with the industry to find new markets for dairy products such as powder product for baby food in China or new markets in Asia. We are having some success in that regard. We have a mature, developed and experienced dairy industry which has the capacity to increase the volumes of milk purchased and retain high prices for producers, but we need to plan and work together to achieve this.

I have a political responsibility to ensure we attempt to find a political solution in a situation where production in Europe as a whole is under quota but four or five countries are under pressure and want to exceed quota. For example, production in Slovenia is 30% under quota this year, yet Ireland has the capacity to be way above quota but cannot acquire extra quota. In the context of bringing the quota regime to an end, I will try, through forming alliances with other countries with similar concerns, to secure a change in policy that will allow for expansion in the dairy sector pre-2015. However, we do not yet have agreement and are a long way off it. I met the Commissioner a number of weeks ago and he was adamant there would be no change at this stage. Therefore, I would not advise taking a course of action whereby producers would anticipate being allowed to produce milk way above quota and politicians finding a way to solve the problem. We must be very cautious.

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