Kathleen Lynch (Cork North Central, Labour)
Link to this: Individually | In context

Question 101: To ask the Minister for Agriculture, Fisheries and Food if he will request EU Farm Commissioner Mariann Fischer Boel to introduce early supports for the dairy sector in order to restore confidence and put a floor under current market prices; and if he will make a statement on the matter. [43977/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

Following historically high dairy product prices last year and into the early part of 2008, dairy exporters are now facing difficulties as markets have contracted and prices have returned to 2006 levels, with butter prices currently below intervention level.

In view of the current volatility in dairy markets, I contacted EU Commissioner Mariann Fischer Boel in early November to activate market measures in support of the sector. I was pleased that the Commission acted decisively and brought forward the scheme of private storage aid for butter. This will now take effect from 1st January, two months earlier than usual and will assist in stabilising the market. At the Agriculture Council last Friday the Commissioner agreed to keep the market situation under review and to come forward with additional measures in the New Year should the situation warrant it.

Market supports are extremely important measures and I was determined to hold onto these in the Health Check. Securing the retention of intervention for butter and SMP, without losing the compulsory purchase at the intervention price of the first 30,000 tonnes and 109,000 tonnes respectively was a major achievement, against very stiff opposition. Even more important was the retention of private storage aid for butter in its current form. This was crucial given our need to even out the production cycle and allow product to be kept under the control of the processors after peak production has closed. The proposal to change the key characteristic of this scheme from obligatory to optional was something I was not prepared to accept. I was particularly pleased that the Presidency accepted my view and in essence, we have secured the preservation of all the important market instruments that Ireland uses without any change whatever.