Tom Fleming (Kerry South, Independent)
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139. To ask the Minister for Agriculture, Food and the Marine the impact, to date, of the food sanctions imposed by Russia, and the supports the European Union is providing to alleviate the losses to the Irish agriculture sector; and if he will make a statement on the matter. [6684/15]

Simon Coveney (Cork South Central, Fine Gael)
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At the time of the imposition of the ban, Russia was the second most important destination for agri-food exports from the EU, valued at some €12 billion in 2013. Almost half of this trade is subject to the ban. Across the EU, fruit and vegetables and dairy are the sectors most affected, although the loss of such a significant commercial market has had repercussions for the entire EU agriculture sector. The most immediate effects of the ban have been felt by the Baltic Member States and Finland.

In Ireland, the sectors most affected are dairy and pig-meat. As regards milk, the continuing volatility in the global dairy market was already having a significant impact on dairy farmers in Ireland and this has been exacerbated by the Russian action. There are, however, signs of improving sentiment in the dairy market and that global prices will recover as the year progresses. As to pig-meat, there has been a substantial fall in producer prices, although this reduction comes after a three year high that peaked in the summer of 2014.

The EU Commission has taken a number of measures to support the market, valued at some €350 million to date. These include:

- Support for market withdrawals, green harvesting and compensation for non-harvesting for perishable fruit and vegetables;

- Introduction of private storage aid for butter and skimmed milk powder, recently extended to the end of September 2015;

- Opening of intervention buying-in for butter and skimmed milk powder, where the closing date was extended to December 31^stin 2014 and the commencement date advanced to January 1stin 2015.

- Introduction of private storage aid for cheese for a short period in September to October 2014. The scheme for cheese was discontinued as the uptake was not in the main from Russian ban affected countries.

- Introduction of a direct compensation package to farmers in the Baltic Member States and Finland.

I have maintained pressure on the EU Commission to ensure close monitoring of the situation and use all of the market tools available to alleviate the impacts. The availability of private storage aid for butter and skimmed milk powder until the end of September next is welcome but I would like the Commission to consider the reintroduction of private storage aid for cheese and for pig-meat. Depending on price developments in the sector, I also think that we may need to look seriously at intervention buying-in in the dairy sector, to be undertaken at price levels that would positively support the market.

At national level I have impressed on the major banks the need to show flexibility in their dealings with farmers experiencing temporary cash flow difficulties in 2015. Co-ops may have a role in mitigating the impact of the global price downturn on their suppliers, and have some flexibility, based on agreements secured at EU level, in relation to the phasing of super levy bills to farmers.