Róisín Shortall (Dublin North West, Labour)
Link to this: Individually | In context

Question 88: To ask the Minister for Agriculture, Fisheries and Food if his attention has been drawn to the fact that Germany, France and Belgium, to mention three EU member states have put in place financial support packages to support their dairy farmers during this difficult period; his plans to introduce a similar package; and if he will make a statement on the matter. [26076/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

Significant measures have already been taken at EU level to support the dairy sector. These included the activation of a range of dairy market management measures including private storage aid for butter and intervention for butter and skimmed milk powder. In addition, export refunds are available to support the export outside the EU of butter, skimmed milk powder, whole milk powder and cheese. Irish processors are availing of all these schemes.

The current difficulties in the dairy sector are primarily due to a lack of demand. By removing product from the marketplace through the permanent export of products and through the temporary storage schemes, a floor has been put on the downward price spiral. Stimulating demand globally is the greatest challenge and one that is inextricably linked to problems in international financial markets where the availability of credit to business is challenging.

With the activation of these measures there has been a considerable commitment of EU funds to support the dairy sector. In addition further more direct funding will be available to dairy farmers as a result of the decision to make advance payments under the Single Payment Scheme. The advance payment will amount to 70% and will come into effect from 16 October. This will be of particular assistance to farmers experiencing difficulties in the dairy market and other sectors and will mean that almost €900 million will be paid in mid October to Irish farmers, rather than in December.