Seán Sherlock (Cork East, Labour)
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Question 239: To ask the Minister for Agriculture, Fisheries and Food the price supports he is seeking from the EU Commission, in view of the difficult position in dairy markets at present and the bleak outlook for 2009, in order to stabilise markets at a reasonable price level; and if he will make a statement on the matter. [45765/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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In view of the temporary volatility in dairy markets and uncertainty in the short-term outlook, 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 on 28th November 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.

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 onto world markets. I will continue to monitor developments in the dairy markets and will intervene again with the Commissioner as the market situation evolves.

EU market supports are extremely important particularly in times of market volatility. In the recent Health Check negotiations, the maintenance of key market supports was one of my main objectives. 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. This was true also in respect of the retention of private storage aid for butter. This was crucial given our need to even out the production cycle and allow product to be kept in the control of processors for subsequent release into commercial markets. As a result of the Health Check negotiations, I have secured the preservation of all the important market instruments that Ireland uses without any change whatever. These will now be activated, first with APS in January and later, in March, when intervention will be open where warranted by market conditions.