Written answers

Wednesday, 26 May 2010

Department of Agriculture and Food

Milk Prices

10:30 am

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Question 111: To ask the Minister for Agriculture, Fisheries and Food his forecast for the average milk price between 2010 and 2020; and if he will make a statement on the matter. [21981/10]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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It is not possible to predict exactly what milk price farmers can expect to get in any particular year. Dairy farmers incomes are comprised of the market price paid for milk and direct income support from the EU. Market forces have a major influence on the price paid to farmers for milk. World market prices determine the returns received by dairy processors and these in turn are reflected in the price paid to farmers. In essence, farm gate prices normally reflect the returns from international markets of dairy product sales.

While there will always be short term fluctuations in dairy prices, it is important to remember that the medium term prospects for global dairy markets are good. Growth in wealth and population is forecast to stimulate strong levels of demand for dairy products and returns will improve to all parts of the sector. The Government is committed to ensuring that the Irish dairy sector can reach its full potential. One of the major challenges in the medium term will be to ensure that Irish farming and the agri-food sector is at the heart of an evolving high-value food market, which is focused on quality and innovation.

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