Timmy Dooley (Clare, Fianna Fail) | Oireachtas source

I thank the Minister for his statement. Like other speakers, I welcome the ending of the quota regime. It provides enormous opportunities, as was identified by the former Minister, Deputy Brendan Smith, when he set about developing a strategy for increased output from this sector of farming. There is undoubtedly a growing demand for our product across the world. The opportunities are there, but there are considerable challenges facing farmers, of which the Minister, Deputy Coveney, is well aware.

The extreme costs of inputs is one of the challenges for farmers. For those who have planned expansion to meet the expected output, there are significant challenges around financing. I fail to see why the superlevy must be paid this year. I accept the Minister would not have told farmers that in advance and that we were coming to the end of a regime. However, an agreement should have been reached that we would not hinder or hamper the capacity of farmers at a time when we need them to invest in their business and expand in a substantial way and when they are challenged by historic loans arising from the requirement to invest in recent years. Some farmers experienced really dire financial straits in that period, when milk prices dropped below the cost of production. They are only getting back on their feet and now they will be hit with a superlevy. Of course it is not the Minister's fault and I am not attempting to put it at his door, but we need to recognise where the market is going. If the Minister explained the situation to a person who has no involvement in farming, he or she would scarcely believe that farmers are to be penalised for overproduction in the year prior to the year in which they are being asked to ramp up production. There is a difficulty in selling that to the wider world and, in the meantime, farmers are trying to cope with it. Collectively, we should all be doing more to assist them.

Milk prices fell in 2014 by 21%, which has tightened margins considerably and placed a very real burden on some farmers. More needs to be done on the superlevy issue. The Minister indicted that the deal which was proposed has been signed. However, it is not really the answer. In fact, it is retarding the capacity of farmers to produce. 2015 probably will not be as bad as was initially projected. Teagasc gave very troubling indications at the very beginning of the year, but that prognosis seems to have been mitigated somewhat based on world prices and issues happening elsewhere. Nevertheless, it will be a bleak year ahead.

See this speech in context