Seán Sherlock (Cork East, Labour)
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Question 240: To ask the Minister for Agriculture, Fisheries and Food his views on the fact that less than 10% of dairy farmers purchased milk quota in the last quota exchange; the measures he will take to restore confidence in the dairy sector; and if he will make a statement on the matter. [45766/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Decisions by dairy farmers in regard to the purchase of milk quota in the Milk Quota Trading Scheme are based on individual circumstances, an assessment of the value and need for milk quota in particular farm enterprises and the prevailing market conditions for milk and milk products. On this occasion, 13 per cent of all dairy farmers decided to apply for quota and I am very pleased that 75 per cent of those who did apply were successful. In fact, nearly 90 per cent of all milk quota offered for sale was taken up.

On the broader question of restoring confidence, I have stated repeatedly that, while the current environment is a volatile one, policy needs to be driven by a consideration of the long-term outlook rather than short-term volatility. Longer-term prospects are generally very positive, with a sustained increase in global demand for dairy products anticipated over the next decade and beyond. Ireland needs to position itself to take advantage of the opportunities presented by such developments.

The Government's strategy has been a three-pronged one. The first element has been the implementation of the €100 million Dairy Investment Fund aimed at stimulating the necessary investment at processing level to ensure the long-term competitiveness of the industry. The second has been the introduction of the Milk Quota Trading Scheme, which has brought a more open market approach to the transfer of milk quota and has ensured that larger volumes of quota than ever before are now getting into the hands of active, committed milk producers. The final element was delivered recently when I successfully concluded negotiations on the Health Check of the 2003 CAP reform. These delivered an outstanding outcome for the dairy sector in the form of substantial milk quota increases and the retention of the market management measures of key importance to Ireland. Most significantly, the outcome has provided a greater degree of policy certainty for the industry going forward.