John Cregan (Limerick West, Fianna Fail)
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Question 102: To ask the Minister for Agriculture, Fisheries and Food the consequences of the CAP health check for milk quotas between 2009 and 2015. [4938/09]

John Cregan (Limerick West, Fianna Fail)
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Question 103: To ask the Minister for Agriculture, Fisheries and Food if he is satisfied that milk quotas here are sufficient to prepare for the end of milk quotas in 2015. [4939/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I propose to take Questions Nos. 102 and 103 together.

The CAP Health Check agreement last November represented a very positive outcome for the Irish dairy sector, and the milk quota elements of the final package will be particularly beneficial to milk producers in this country.

It was agreed that quotas will be increased by 1% per year for the next five years, commencing on 1 April 2009. This increase comes on top of the 2% increase already implemented in 2008. In addition, there will be an adjustment to the butterfat correction mechanism in 2009 that will generate the equivalent of a further 2% increase in the national quota. Taking all of these together, there will be a cumulative increase in Ireland's quota by 2014 of 9.3%, or almost 500 million litres, compared to 2007.

I believe the agreed combination of quota increases and butterfat correction allows Ireland to prepare properly for quota abolition in 2015. I say this for two reasons. The first is that our additional production potential places us in a position to derive the maximum possible benefit from the quota increases over the next five years. The second is that my efforts to encourage greater efficiency at producer and processor levels will continue so that maximum added value from the quota increases can be achieved and the Irish dairy sector will continue to be well-placed to compete on international dairy markets into the future.