Written answers

Tuesday, 30 June 2009

Department of Agriculture and Food

Dairy Industry

11:00 pm

Photo of Séamus KirkSéamus Kirk (Louth, Fianna Fail)
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Question 61: To ask the Minister for Agriculture, Fisheries and Food his views on whether there is further scope for the use of market management mechanisms to support the dairy sector; and if he will make a statement on the matter. [25945/09]

Photo of Johnny BradyJohnny Brady (Meath West, Fianna Fail)
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Question 94: To ask the Minister for Agriculture, Fisheries and Food if the closing dates for private storage aid and intervention purchases of butter and skimmed powder will be extended beyond the end of August 2009; and if he will make a statement on the matter. [25936/09]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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I propose to take Questions Nos. 61 and 94 together.

A range of market management mechanisms at EU level have now been activated to assist in stabilising the dairy sector. These include private storage aid for butter, public intervention for butter and skimmed milk powder, as well as export refunds for butter, skimmed milk powder, whole milk powder and cheese. These measures have now put a floor under the milk price but I believe that more can be done to stimulate demand.

I have continuously pressed the EU Commission to increase export refunds further for butter and SMP in particular, and to remove the 'free at frontier' price for cheeses, which limits the use of refunds for the export of cheese to international markets. I have also pressed very strongly for the continuation of private storage aid for butter beyond its scheduled closing date of mid August and similarly in relation to public intervention for butter and SMP beyond their closing dates of end August. The role that these schemes play in evening out the supply/demand balance is crucial to the dairy sector in this critical period. I am confident that the Commission will accede to my requests on these issues.

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