Bernard Durkan (Kildare North, Fine Gael)
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87. To ask the Minister for Agriculture, Food and the Marine the extent to which he is satisfied that dairy production here will not suffer in the aftermath of the abolition of quotas; and if he will make a statement on the matter. [43473/14]

Simon Coveney (Cork South Central, Fine Gael)
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As the Deputy is aware, Ireland strongly supports the abolition of the milk quota regime , on the basis that quotas were widely regarded by all concerned as a brake on the potential of the Irish dairy sector to respond positively to market opportunities. The ending of milk quota regime represents an exceptional opportunity for the dairy industry to increase milk output and, as a result, the industry has set itself a target, under Food Harvest 2020, of increasing milk production by 50% in the period to 2020. This will result in increasing the 2008/2009 average annual milk production of 5bn litres to 7.5bn litres in 2020. Consequently I am satisfied that dairy production in Ireland will not suffer in the aftermath of the abolition of quotas Since the publication of the Food Harvest 2020 Report , my Department has been providing a range of supports to assist farmers in exploiting the potential for expansion and development. Through a combination of Departmental supports and the work of Teagasc, AHI and ICBF, significant advances have been made over the last four year in improving efficiencies, education and training at farm level. In that time some 7,000 Irish dairy farmers (c.40%) have participated, to varying degrees, in knowledge transfer programmes, delivered through the medium of Discussion Groups. These programmes were aimed at encouraging efficiency gains on dairy farms through changing attitudes and improving technical, financial and scientific knowledge, as well as skill levels at individual farm level.

Notwithstanding the recent softening of prices for dairy products on world markets and the consequent reduction in farm gate prices for milk, the general consensus among forecasters in this area is that increasing incomes and globalisation of diets are expected to raise the demand for milk and dairy products in developing countries and an increasing import demand will support prices of dairy products during the next decade. Ireland is well placed to take advantage of this increased trade and the removal of quota restrictions will allow the necessary increased production.