Written answers

Wednesday, 18 January 2012

Department of Agriculture, Marine and Food

Milk Quota

9:00 pm

Photo of Michael McCarthyMichael McCarthy (Cork South West, Labour)
Link to this: Individually | In context

Question 197: To ask the Minister for Agriculture, Food and the Marine the way he will ensure that the abolition of the milk quota in 2015 will not lead to an over-production of milk; the measures in place to deal with extra milk supply following the move; and if he will make a statement on the matter. [2874/12]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context

The decision to abolish milk quotas with effect from 1 April 2015 was made in the context of the CAP Health Check in 2008. Ireland strongly supported their abolition, on the basis that quotas were widely regarded by both the Irish dairy sector and market analysts as a brake on the potential of the Irish dairy sector to respond positively to market opportunities.

More than 85% of Irish dairy production is exported, and the price of milk in Ireland is ultimately determined by global demand and supply. Supply volumes are, in the final analysis, determined by market demand and ultimately by price considerations. Market prices are strong at present and the medium and long term prospects for the sector are good. Already we can see a strong supply response to these trends in Ireland, but of course milk quotas remain a significant constraint on Ireland's production until 2015, and I have been working hard at EU level to seek further flexibility in the regime to permit Irish farmers to respond to market demand. However, there is no indication to date that the Commission will adjust the current regime, and therefore producers will have to remain within quota until then.

The supply management arrangements that currently exist will no longer apply after 2015, and it is a matter for the processing industry to work with the milk producers to ensure a coherent and thriving dairy industry post quotas that will exploit the undoubted potential in existing and new markets, maximize efficiency at production and processing levels and respond effectively to market demand. The Dairy Activation Group report sets out the specific measures needed to be taken in the lead up to quota abolition to enable the sector take advantage of the projected growth possibilities and, through the Food Harvest 2020 implementation committee, I will continue to support the industry in this task.

Comments

No comments

Log in or join to post a public comment.