Terence Flanagan (Dublin North East, Fine Gael)
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Question 42: To ask the Minister for Agriculture, Fisheries and Food his views on the position of Irish dairy products on global markets in view of falling milk prices; and if he will make a statement on the matter. [37530/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Ireland has been successful in building EU and world market trade over a sustained period. This has been supported by consistent efforts to promote and market Ireland's dairy produce in these markets by Irish operators. Over 80% of Irish dairy production is exported to EU and world markets. 2007 was another successful year for the Irish Dairy Sector with exports up 13% to €2.36bn. This was achieved despite challenges brought about by reduced export refunds, subsidies and aids, increased energy costs and a weakening of the US dollar against the Euro. The increase in dairy exports amounted to €270 million, 65% of the total rise in food and drink exports, and half of this growth came from Asian Markets.

Market forces have a large and increasing influence on the price paid for milk. As a consequence of tightness of supply on EU and World Markets, prices for dairy products increased considerably in 2007 and prices reached record levels in the autumn. Due to this market buoyancy, internal aids and export refunds in the milk sector were suspended. Prices have fallen back from those high levels and this has been reflected in the milk price currently being paid to farmers. My Department closely monitors developments in the dairy market on an ongoing basis. I will continue to recommend that the Commission utilise the various support measures when market conditions warrant it.