Bernard Durkan (Kildare North, Fine Gael)
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Question 392: To ask the Minister for Agriculture, Food and the Marine the extent to which he expects the dairy sector to develop in the future; if this is likely to have full regard to the need to maximise output in this area in the country and throughout Europe; and if he will make a statement on the matter. [31931/11]

Simon Coveney (Cork South Central, Fine Gael)
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I expect the Irish dairy sector to fully exploit its undoubted potential over the next decade and beyond. The roots of this potential lie in the unrivalled natural advantage we possess in the form of a grass-based production system, which allows us to produce milk and other dairy products of the highest quality in an environmentally friendly manner and on a highly cost efficient basis. These characteristics in turn strengthen our marketing position against the backdrop of very positive forecasts in relation to global population and economic growth over the coming decades. The industry is well-placed to exploit these advantages as it continues to develop and modernise, with new technologies and best practices being applied at producer and at processor level.

In setting out the strategy for the development of the agri-food and fisheries sectors over the next decade, the Food Harvest 2020 report seeks to harness this potential by setting a target of a 50% growth in milk production by 2020 compared to the average for the 2007-2009 period. This is an ambitious but, I believe, an achievable objective. The realisation of this target will be dependent on the achievement of maximum efficiency at production and processing levels, motivated by the belief that we can always do things better. The report's recommendations focus on changes needed in milk processing, in on-farm competitiveness, in the transfer of technology and knowledge to dairy farmers, and in R&D and marketing. I chair the High Level Implementation Committee, whose function is to drive and co-ordinate the successful implementation of Food Harvest 2020.

The Dairy Expansion Activation Group has got the implementation ball rolling in the dairy sector. Earlier this year it produced a Road Map setting out 55 actions that are required to achieve the 50% increase in milk production. These are broken into four categories, namely, on-farm production, efficiency in the milk processing sector, the development of market opportunities and general agriculture policy. Dr. Sean Brady, who chaired the Dairy Expansion Activation Group, is continuing to facilitate the process of implementation and to monitor progress. All of the stakeholders are being encouraged to discharge the responsibilities assigned to them and the response is being monitored and reported upon.

The Deputy will also be aware that Milestones for Success, the first annual progress report on the implementation of Food Harvest 2020, was published in July. More than 90% of the 215 initiatives have been commenced. I know that a lot of effort has already been made by all stakeholders, and that there is a strong commitment to delivering results. I believe a good start has been made and I am confident that the momentum generated by that good start will be carried forward.