Bernard Durkan (Kildare North, Fine Gael)
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Question 244: To ask the Minister for Agriculture, Fisheries and Food the extent to which he has monitored trends and production level in the dairy sector and its potential to compete on home and international markets; the extent to which he has planned for the future; and if he will make a statement on the matter. [17301/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Milk production levels in any given year are a function of price, climatic and other factors. Over the medium to long term, prospects for global dairy markets are positive, with growth in wealth and population forecast to stimulate strong levels of demand and improve returns in the sector. The Irish dairy industry is well placed to take advantage of this expansion in global demand. There is a significant potential to increase milk production from the current base, particularly following quota abolition, and Ireland has the added advantage of a significant competitive advantage, with its low cost grass based production system.

If the dairy industry in Ireland is to reach its potential, it is critically important that operators in the sector, both at farm and processing level, focus on reducing costs and increasing output and efficiency. There must also be a focus on consolidating and expanding market share in existing markets, on developing new markets, and on product and process development.

My Department and its agencies have supported these efforts over many years and are continuing to do so, through the provision of funding for capital investment both at farm and processor level, through the Dairy Efficiency Scheme, which funds the establishment of discussion groups to encourage best practice at farm level, in terms of grassland management, breeding and financial management, through the provision of advice and education based on state of the art research by Teagasc, and through the FIRM and Stimulus Research Funds.

At present my Department is engaged in an exercise to establish a medium term programme for the development of the agri food sector to 2020. I expect to have a report by June from the 2020 Strategy Committee, which includes representation at the highest levels from the agri food sector. This report will propose strategies for the development of the agri-food sector, including the dairy sector. I look forward to receiving it, and to building on the actions already taken by Government under the AgriVision 2015 Plan.