Simon Coveney (Cork South Central, Fine Gael)
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Question 55: To ask the Minister for Agriculture, Fisheries and Food the action he will take to assist the dairy industry in introducing efficiencies in the effective collection and processing of milk; and if he will make a statement on the matter. [43573/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The Government is committed to ensuring that the Irish dairy sector reaches its full potential. One of the major challenges in the medium term will be to ensure that Irish farming and the agrifood sector is at the heart of an evolving high-value food market, which is focused on quality and innovation. This is at the core of Government strategy which sets out a series of actions to develop a competitive, innovative and consumer focused agri food sector. As part of this overall strategy, my Department provided funding of €114 million towards investment in dairy processing, which will generate an estimated capital spend of €286 million at full production. By stimulating necessary investment in the sector the Fund will help ensure the long-term competitiveness of the dairy industry in Ireland.

The Prospectus Report published six years ago called for significant investment to ensure the successful implementation of a dairy consolidation programme. In addition to increased investment in R&D and marketing, the report recommended significant up-front costs in capital investment requirements.

The dairy industry itself is ultimately responsible for introducing efficiencies at processor level and has already made substantial investment as part of the government supported Dairy Investment Fund. In the past year the industry has engaged in ongoing and wide ranging consultation with a view to restructuring milk processing in Ireland. I will continue to assist the dairy sector in any way possible. Our objective must be to improve competitiveness, scale and cost efficiency at processing level that allows Irish operators compete on international markets.