Charles Flanagan (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

Question 137: To ask the Minister for Agriculture, Fisheries and Food the steps he proposes to take to protect dairy farmers here from being forced out of business in view of the collapse of global prices for dairy commodities; and if he will make a statement on the matter. [44068/08]

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

In the light of the temporary volatility being experienced in international dairy markets at present and uncertainty in the short-term outlook, I contacted EU Commissioner Mariann Fischer Boel seeking the introduction of market support mechanisms to assist the sector through the current difficulties. I was pleased that the Commissioner acted decisively and brought forward the scheme of private storage aid for butter. This will now take effect from 1 January, two months earlier than usual, and should go some way towards stabilising the market.

Once the effect of the early introduction of APS is evident, we can then assess the need to activate other mechanisms to assist dairy exporters who are facing difficulties exporting product from the EU on to world markets. I will continue to monitor developments in the dairy markets and will intervene again with the Commissioner as the market situation evolves. As part of the Health Check negotiations, as well as achieving a substantial increase of 9.3% in Ireland's milk quota, an essential step in dealing with the end of the quota system, I also succeeded in having market supports in the form of Intervention and APS retained as they currently apply.

While we are facing short-term uncertainty, analysis shows that the long-term outlook is bright. Global growth in wealth and population will provide opportunities for quality producers like Ireland. One of the major challenges in the medium term will be to ensure that Irish farming and the agri-food sector is at the heart of an evolving high-value food market, which is focused on quality and innovation. This is at the core of Government strategy, evidenced by the National Development Plan 2007-2013, AgriVision 2015 and the Partnership Agreement Towards 2016.