Bernard Durkan (Kildare North, Fine Gael)
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25. To ask the Minister for Agriculture, Food and the Marine if the dairy sector can compete effectively on the global and European Union markets given the abolition of milk quotas; if any significant factors have arisen which will impact on the sector; if he is satisfied in regard to future opportunities for the dairy industry; and if he will make a statement on the matter. [2304/16]

Simon Coveney (Cork South Central, Fine Gael)
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Ireland is strongly positioned as a competitive producer of dairy. It has enviable natural resources, adaptable and resilient producers, a strong international reputation, an effective dairy processing sector and a strong core of research infrastructure and expertise. A recent report from Bord Bia estimates that Irish dairy exports increased by 4% to €3.24Bn in 2015. Some 42% or €1.36 billion went to international markets beyond our traditional UK and EU partners’ markets. This represents a very strong performance against the background of somewhat depressed international dairy markets during 2015. Factors contributing to global price volatility in 2015 included the Russian Ban and the softening of Chinese demand on one side, coupled with increased production among key global producers including the EU on the supply side. The longer term demographic and demand perspectives remain positive, but 2016 will be a challenging year.

EU market supports, including intervention, are available to operators, the dairy package agreed by the Council of Ministers in December 2015 included an additional direct payment to dairy farmers, and my Department will continue to provided support to the sector through Rural Development Schemes such as TAMS, and by providing funding to bodies such as Teagasc, AHI and ICBF to improve efficiency at farm level.