Simon Coveney (Cork South Central, Fine Gael)

I thank the Deputy for raising this issue. However, I am not sure what, in the context of development of a regionally balanced dairy sector, he is looking for from me. I assume his question relates to the position post-2015, preparations being made in that regard in the context of the absence of dairy quota and a dramatic expansion of the dairy industry and how we ensure that expansion will provide a dividend for all regions, rather than particular pockets of the country. The honest answer is that it will be difficult to do this. Certain farms, soil types and skill sets will allow particular parts of the country to expand more aggressively than others. Lest there be uncertainty, there is strong viability to produce milk in all provinces. For example, there are pockets of fertile land within disadvantaged areas.

Dairy farms are efficient. We must continue our journey towards efficiency within the dairy sector which is very much under way through structures such as the dairy discussion groups and other initiatives taken by processors in building the business skills base on dairy farms. Glanbia recently launched a proactive initiative and I expect other co-operatives to do the same. I do not see any reason development of a new market for milk and milk related produce cannot be of benefit across the country, be it in the Deputy's constituency or mine in which traditionally people have assumed most of the growth will take place.

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