Bernard Durkan (Kildare North, Fine Gael)
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86. To ask the Minister for Agriculture, Food and the Marine the extent to which a system may be devised to protect producers and consumers against peaks and troughs in the food production sector, which alternately affect food producers and consumers; if he has studied means whereby the more serious fluctuations may be ameliorated; and if he will make a statement on the matter. [34840/15]

Simon Coveney (Cork South Central, Fine Gael)
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Food Wise 2025, the new ten year strategy for the agrifood sector published in July this year, builds on the successful vision of Food Harvest 2020. It identifies the opportunities and challenges facing the agrifood sector and provides an enabling strategy with more than 380 specific recommendations, which will allow the sector to grow and prosper. As a small open economy which exports the vast bulk of its main agricultural commodities, Ireland will always feel the effects of volatility on world markets. However, there are measures in place to help Irish farmers through these periods:

- Direct payments estimated by Teagasc at an average of over €19,000 per farm in 2014 provide a valuable source of farm income support and act as a hedge against price volatility. 

- The measures in the 2014-2020 Rural Development Programme will provide vital support through farm investment, agri-environment and knowledge transfer schemes.

- The package introduced by the EU Commission recently to address difficulties in the dairy and pig meat sectors reflects the majority of the demands I presented to them, particularly

- The increase of more than 100% in the rate of private storage aid for skimmed milk powder.

- The award of almost €14 million in direct aid to Ireland.

- The concession made by the Commission to allow advance payments of 70% under the direct payments scheme and 85% for rural development schemes before completion of controls, which will be of major benefit in easing the cash flow of farmers.

I believe that an important insulation against volatility is moving up the value chain where possible, in terms of the type of products sold and how they are produced.

I have regular meetings with the CEOs of the main banks, and I know that they are all aware of the difficulties in dairy prices this year, and are planning accordingly in terms of managing dairy loans.- Lower costs of production mean lower exposure to price and input volatility. In Ireland our grass based system gives us a natural advantage in this regard, and my Department is doing a lot to improve efficiency on farms, with the assistance of discussions groups and Teagasc advisory, education and research work, and in the processing sector, with initiatives like Origin Green.

The European Commission decided in June to establish a new High level Forum for a Better Functioning of the Food Chain comprising Member States and representatives of parties in the food supply chain and will assist the Commission with the development of measures contributing to a better functioning food supply chain.

Also, the 2013 reform of the Common Agricultural Policy was a useful and progressive reform making the CAP fit for purpose to 2020. It provided Irish farmers and the agrifood sector with policy certainty for the years to come and with strategic financial support to increase sustainability and enhance competitiveness. I will continue to work with my EU colleagues to ensure that we engage in policies that promote the interests of the EU agricultural sector.