Written answers

Tuesday, 3 July 2012

Department of Agriculture, Marine and Food

Dairy Sector

9:00 pm

Photo of Séamus KirkSéamus Kirk (Louth, Fianna Fail)
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Question 554: To ask the Minister for Agriculture, Food and the Marine his plans to review the transitional arrangements for dairy farming between now and 2015 to allow for an orderly expansion of the dairy sector; and if he will make a statement on the matter. [32181/12]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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The 2008 CAP 'Health Check' review agreed to the abolition of milk quotas in 2015, and provided for a smooth transition by increasing quota for all Member States in the remaining years. Under those arrangements Ireland will have received an additional 9.3% in quota between 2007 and 2014. However for some countries, including Ireland, these quota increases are insufficient to accommodate increases in milk production which have been driven by supply and demand dynamics, and the prospect of a quota free production environment after 2015.

I have been extremely active in seeking to secure a soft landing for all Member States in the lead-up to milk quota abolition in 2015, as envisaged in the 2008 CAP Health Check agreement. I have discussed the matter extensively with other EU Agriculture Ministers, including in bilateral meetings with my Danish, French, German, Estonian and Finnish counterparts. Furthermore, officials from my Department have raised this issue at EU level meetings, and at bilateral meetings with other Member States. The Commission is due to prepare the second interim report on the Health Check by the end of this year and in that context we have called for it to consider measures to ensure a smooth transition to quota abolition in all countries. To date, however, the Commission has resisted attempts to reconsider this issue, as it has resisted attempts to revisit the outcome of the 2008 CAP Health Check in an overall sense. The Commission's view is supported by a number of Member States, some of whom are firmly against any further adjustment to the Health Check agreement. It is also the case that only a minority of Member states is likely to be adversely affected by the current quota restrictions, and therefore persuading a qualified majority to agree to an adjustment of the current regime represents a significant challenge. There are currently no signs of a breakthrough in this regard .

At this point therefore, it would appear that since a majority of Member States do not support any further adjustment to the soft landing, farmers should plan for the continuation of the quota regime until March 2015.

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