Jackie Cahill (Tipperary, Fianna Fail)
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323. To ask the Minister for Agriculture, Food and the Marine the status of the latest EU auction on skimmed milk powder; the tonnes to date of skimmed milk powder intervention product purchased; the way in which the tendering process for intervention in 2018 is proceeding; and if the EU Commission is still offering €1,698 per ton as obligated under the 2013 CMO regulation in 2018. [14859/18]

Michael Creed (Cork North West, Fine Gael)
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As the Deputy will be aware, the Irish dairy market, following on from broader EU and international trends, is currently in a much improved position compared to the relatively recent past. Of course, we remain vigilant in monitoring the market and emerging trends, particularly as we approach the peak period for Irish milk production.

The issue of intervention stocks overhanging the dairy market remains a cause for concern arising from the significant recourse to this market measure for skimmed milk powder across the EU since September 2015.

Figures from the European Commission show there were approximately 376,000 tonnes of skimmed milk powder in public intervention stocks at the end of February effectively overhanging the EU skimmed milk powder market.

With specific regard to the tonnes of skimmed milk powder purchased into intervention, no quantities have been purchased since October 2017 as detailed in the most recent Milk Market Observatory Report published by the European Commission 23/03/2018. A total of 30,647 tonnes were offered to intervention in 2017, this is in addition to 334,551 tonnes offered in 2016 and 40,280 offered in 2015.

In relation to the sale of intervention stocks, the Commission has agreed to accept bids as part of its most recent tender process, for approximately 4,127 tonnes of SMP at a price of €105/100kg. A further 4337 tonnes were sold at a price of €110/100kg in February 2018 and a total of 1564 tonnes at a price of €119/100kg in January 2018.

Regarding the price offered by the Commission as referred to and the Commission’s approach to this generally, my Department and I engaged at Council of Ministers meetings and directly with the Commission on recent measures to limit further stockpiling of skimmed milk powder in 2018 without due justification, including the Commission's proposal to reduce the fixed-price ceiling to zero. I strongly argued that this measure should be specified as for 2018 only to avoid setting a precedent for the longer term. This point was accepted and agreed in the final version of the measure as adopted by the Council through Regulation No. (EU) 2018/147 of 29 January 2018.

I have clearly stated previously, at Council of Ministers meetings and elsewhere, that it is imperative that the Commission remains vigilant in monitoring the market and that it has contingencies in place in the event of market volatility re-emerging in relevant markets, particularly the raw milk, butter and skimmed milk powder markets. In common with the vast majority of EU member states where dairy production is of significance, I recognised that the current position on existing stocks could not be allowed to persist indefinitely and that there is general acceptance that doing nothing is not an option.

Given the Commission's status among the world’s biggest players on the skimmed milk powder market, and as such its capacity to affect market sentiment, the Commission should act prudently and responsibly in the disposal of stocks. I am satisfied to date that the Commission has managed those stocks in a prudent manner.

My Department has engaged and will continue to engage with the Commission, with other member states, and with national stakeholders on these important issues.