Written answers

Tuesday, 20 May 2008

Department of Agriculture and Food

Dairy Sector

9:00 pm

Photo of Michael D HigginsMichael D Higgins (Galway West, Labour)
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Question 148: To ask the Minister for Agriculture, Fisheries and Food if he will press for an increased rate of export refunds to assist milk processors; and if he will make a statement on the matter. [19628/08]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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The Common Agriculture Policy provides the EU with various market measures with which it manages the dairy market. During 2007 dairy prices increased dramatically as a consequence of high demand and tightness of supply on EU and World Markets. This shortage of supply caused the Commission to zero rate export refunds for milk products. Prices have fallen back from their high point of last autumn but still remain strong and above intervention levels. Increased EU production in recent months has seen large quantities of butter go into private storage, which indicates an expectation of strong demand in the second half of the year. My Department closely monitors developments in the dairy market on an ongoing basis. I will continue to recommend that the Commission utilise the various market measures, including export refunds, when the market conditions warrant them.

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