Written answers

Tuesday, 23 September 2014

Department of Agriculture, Food and the Marine

Milk Quota

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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16. To ask the Minister for Agriculture, Food and the Marine the steps he has taken to seek an easing of the quota restrictions on Irish dairying or to get a reduction in the super levy that could be imposed on the industry between now and the ending of quotas next year; and if he will make a statement on the matter. [35170/14]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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As the Deputy is aware, the superlevy fine is set by milk quota Regulations agreed at EU level. Given that fact, it is not possible for me on a unilateral basis to change that rate without the agreement of both the Commission and all other Member States. At each Agriculture Council over the last year the issue of additional measures to ensure a ‘soft landing’ to milk quota abolition in 2015 was discussed. Several Ministers, including myself, called on the Commission to take action to ease the burden of the super levy in the final year of the quota regime but such an agreement was not forthcoming at the time and remains so presently. As there is no common position at the Council of Agriculture Ministers such an improvement looks unlikely to be achieved.

It must be clearly noted that a number of other countries are opposed to any action on this and have sought to link the issue to possible measures to regulate supply after quotas are gone. I am obviously resolutely opposed to any talk of supply controls after quota abolition next April on the basis that these quotas have only served to shackle Irish farmers over the last 30 years. The resultant stalemate means there is insufficient support for any change to the regulations and no agreement has been possible. The current Italian presidency agreed to consider the issue at their first Council meeting in July and I fully expect that the issue will remain high on the agenda for discussion at future Councils where I will continue to seek to have the matter progressed in a way that is fair to both Irish and EU dairy farmers.

In preparation for quota abolition, I have announced a number of significant investments by my Department in the Irish dairy sector particularly at farm level. These include the Dairy Expansion Scheme and the TAMS funding for the dairy sector. Furthermore, the draft Rural Development Programme 2014 -2020 provides for significant on-farm capital investments through the TAMS II scheme and will include funding for dairy equipment. Discussions with the Commission prior to approval will facilitate agreement of the overall RDP with the expectation for commencement of this scheme from next year. These current and prospective investments complement the excellent work being undertaken by Teagasc and ICBF in preparing dairy fairy farmers to take advantage of the significant opportunity which quota abolition will present.

For the information of the House, the estimated total volume of milk supplies up to the end of August 2014, taking into account the relevant butterfat adjustment, leaves Ireland 6.44% over quota at end of that month.  This compares to 0.36% under quota this time last year and is down from 6.79% over quota at end of last month. In preparing their enterprises for the post quota era, I have at all times urged that farmers have regard for the fact that milk quotas would remain in place until April 2015, along with the associated superlevy regime, and I would take this opportunity today to reiterate this call. I would again urge farmers to use the time period between now and the removal of milk quotas to identify, with their dairy adviser, steps to manage both their milk supply and their dairy herds so that they have an efficient herd as they enter the post quota era. In this regard, I am organising a major dairy conference on November 19 next to assess our readiness for quota abolition and to take stock of the current challenges and opportunities facing the sector.

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