Pat Deering (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I, too, wish the Ceann Comhairle well in his new position. I am sure he will find his new role enjoyable and fulfilling.

I welcome the opportunity to speak on this important issue. In my opinion, agriculture is an issue that does not get the credit it deserves. It has been the driving force behind the economy of this country getting to where it is currently. It has been a key driver in the economy over the past number of years. Unfortunately, as has been mentioned by a number of speakers, it did not receive the respect it deserved during the recent general election campaign. As a dairy farmer in my spare time, I am only too well aware of the difficulties being experienced by this sector. I am also aware of the impact which increases in the dairy sector can have on the rural economy.

Deputy Heydon referenced the Ballitore plant in his constituency. I would like to speak a little about the Ballyragget plant in south Kilkenny in my constituency. Any increased production in this area, in terms of the 75 mixed dairy producers in the Ballyragget area, will result in an additional €10 million being spent in the rural economy of Ballyragget over the next five years. Agriculture is crucial to the development of rural Ireland. Once a farmer has money, it will be re-invested in the economy. From a dairy sector point of view, we are experiencing many difficulties. I returned to farming approximately 20 years, when the price of a litre of milk to the farmer was 28 cent per litre. Today, the price per litre is 24 cent while at the same time the cost of production has increased by 50%. This is not sustainable into the future. It is important this issue is addressed.

I welcome some of the packages that have been introduced recently, including the €500 million package from Europe in September last, which was topped up by national government and the package introduced last week. However, these packages, while important and helpful, are only short-term measures. We need to re-examine the intervention price for milk. Many people believe we need to put in place a floor in relation to milk prices. The 28 cent per litre price needs to be re-examined over time. It is also important that the top-up payment for young farmers is reintroduced if they are to remain sustainable into the future.

The beef issue has been articulated by many people in recent times. Additional cattle will come on to the market given the increase in the number of dairy cows over the past year or so. By this time next year, there will be a perfect storm from a beef point of view and we need to plan for that. The only way to address this is to increase exports.

As we approach the mid-term review of the CAP, it is important that there be significant consultation regarding all the issues. For example, the sheep industry was mentioned earlier. The simplification of the CAP needs to be addressed as we move forward.

See this speech in context