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

I welcome the Minister's commitment to a review in this area. As one of the few surviving dairy farmers here, I understand the volatility issue. I can go back further than the Minister. In 1998, the price of a litre of milk was the equivalent of 28 cent. The problem is that costs have increased by 50% in the intervening 20 years. We must remember that a number of instruments have been introduced by the co-ops, such as forward selling and set contract prices, where a supplier sets a price for a certain period and which are very important. Last year, a €150 million low-interest loan was introduced, which was very welcome and well accepted by farmers. A similar scheme is due to be announced in a number of months, which will also be very helpful in dealing with volatility.

Volatility does not just apply to the dairy sector but applies across the farming sector. Deputies McConalogue and Martin Kenny spoke about the tillage sector, which we were dealing with in committee today and where there are huge differential problems as farmers in the sector depend on the basic payment to make up their income. That issue also has to be taken on board.

When the new loan scheme is introduced early next year, a certain amount must be ring-fenced for sector-specific funding, whether it be for tillage, horticulture or dairy. In general, I welcome the Minister's commitment to introduce a review based on the principles drawn up in 2014.

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