Johnny Brady (Meath West, Fianna Fail)
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Question 64: To ask the Minister for Agriculture, Fisheries and Food his views on whether further supports to assist the dairy sector here are justified; and if he will make a statement on the matter. [11870/09]

John Cregan (Limerick West, Fianna Fail)
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Question 82: To ask the Minister for Agriculture, Fisheries and Food the efforts he has made to secure supports for the dairy sector here in view of the dairy market situation; and if he will make a statement on the matter. [11879/09]

Johnny Brady (Meath West, Fianna Fail)
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Question 110: To ask the Minister for Agriculture, Fisheries and Food if he will raise the difficulties in the dairy sector here at the forthcoming meeting of the EU Council of Agriculture Ministers; and if he will make a statement on the matter. [11869/09]

John Cregan (Limerick West, Fianna Fail)
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Question 112: To ask the Minister for Agriculture, Fisheries and Food his views on the outcome of his recent meeting with Commissioner Mariann Fischer Boel in relation to the dairy sector here; and if he will make a statement on the matter. [11880/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I propose to take Questions Nos. 64, 76, 82, 110 and 112 together.

We have an unprecedented situation in the dairy sector at present and the outlook for dairy markets in the short term is poor. Following historically high prices in 2007 and early 2008 a market correction is now taking place and there is the added complication of the credit crunch. These two factors have put an enormous burden on the sector and resulted in a slump in demand.

I have maintained close contact with Commissioner Fischer Boel regarding the need for appropriate action to support the market. The Commission responded initially with the early introduction of Private Storage Aid for butter and with the reintroduction of export refunds in January. In addition the Commissioner gave a commitment to continue intervention for butter and skimmed milk powder under the tendering arrangements once the fixed limits were reached. These were welcome developments and well judged at the time.

I met the Commissioner in Brussels on the 11th of March to discuss developments and explore the options open to us. In particular I had two main issues to press her on. The first was the need to buy butter into intervention at prices close to the fixed price level. The second was to stress the need to export larger quantities of butter and skimmed milk powder to international markets. I am pleased to report very positive progress on both these key points. At last week's management committee meeting it was agreed to purchase a total of 6,665 tonnes of butter into intervention at levels very close to the intervention price. This is a very important development. In addition to this, increased quantities of butter and skimmed milk powder were granted export refunds at the same meeting. In fact, the volumes supported with export refunds last week were almost equivalent to the combined totals of the three previous tenders. This is a very welcome improvement and should help bring stability to the market.

I am encouraged by this progress in the use of EU support measures and I believe we have made some steps towards stabilising the market. However, there is still room for improvement and the Commission's role in managing the market is crucial.

At yesterday's meeting of the Council of Ministers there was a debate about the unprecedented situation in the dairy sector at present and the short term outlook for dairy markets. I informed my colleagues that in Ireland we are entering a period of abundant supplies and the levels at which refunds and intervention function will be critical to the speed at which we emerge from the current slump. While I was encouraged by recent developments in community support, I urged a short sharp utilisation of the market management measures to get the market back to equilibrium as quickly as possible. It is clear to me that the elements that will lead this recovery are competitive refunds that allow the sale of dairy products onto world markets in considerable quantities and the continuation of intervention under the tendering mechanism provided that these arrangements remain relatively attractive.

I expressed the view that there is a long way to go before we can see the market again performing at its optimum level and that achieving this is critical so that our industry at all levels continues to do sustainable business and build for the future. There was a general consensus on the need to utilise all the market supports and I will continue to monitor the situation closely.