John Cregan (Limerick West, Fianna Fail)
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Question 59: To ask the Minister for Agriculture, Fisheries and Food if he is satisfied with the assistance provided by the EU Commission to support dairy prices; and if he will make a statement on the matter. [20321/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The Common Agriculture Policy of the EU provides a range of measures that can be utilised to assist the European dairy market. Those measures have been modified over recent years, in the Mid Term Review of the CAP in 2003 and in the Health Check last year. In those negotiations I argued strongly in favour of keeping the critical market instruments in place and of using them effectively. These measures are now being used to help the sector at this difficult time.

Most of the support schemes had been suspended from 2007 as prices were at record high levels. When the situation deteriorated in 2008 I called on the Commissioner to reintroduce appropriate market supports. The Commission has acted over recent months to address the situation. They initially responded last November by bringing forward the operation of the private storage scheme for butter. Following that, in January, the Commissioner announced the re-introduction of refunds for export of dairy products outside the EU.

In March the Intervention schemes for butter and skimmed milk powder were opened. I met with the Commissioner to discuss the market situation and stressed the importance of continuing to accept butter and SMP into intervention at effective levels. Since the intervention limits were reached the Commission has continued to buy butter and SMP into intervention at prices close to the fixed price under the tendering system. I also called for the continued use of export refunds at viable levels to move significant quantities of product from the EU.

Apart from pressing the EU Commission I have also raised the matter with my colleagues at the Council of Agriculture Ministers, most recently at the April meeting. I drew attention to the serious difficulties on the milk market where the severe slump in demand has led to a dramatic fall in prices. There was considerable support around the table and I will continue to build on that in the coming weeks. Milk will feature again on the agenda of the Agriculture Council and I will once again reiterate my views to the Commission and the Council.

The EU Commission actions in implementing the available support measures have helped to stabilise the market. However, I will continue to monitor the situation and intervene again with the Commissioner as the market circumstances evolve, including at next weeks Council of Ministers meeting in Brussels.