Jackie Cahill (Tipperary, Fianna Fail)
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50. To ask the Minister for Agriculture, Food and the Marine his plans to raise the issue of the removal of price support for skimmed milk powder at the EU Council of Ministers in view of the fact that the changes have significantly reduced the price of milk to the primary producer; and if he will make a statement on the matter. [18247/18]

Michael Creed (Cork North West, Fine Gael)
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As the Deputy is aware, the Irish dairy market, following on from broader EU and International trends, has performed strongly in 2017 and the early months of 2018, following a period of low prices in 2015 and 2016. While the overall dairy sector is now in a much better place overall than it has been in recent years, there is a significant overhang of intervention stocks of skimmed milk powder in the EU.

I remain conscious of the pressure volatility in dairy markets can exert on farmers and I can assure the Deputy that I am committed to utilising all measures at our disposal, including EU market measures such as intervention, aids to private storage and exceptional market measures, as necessary.

There were approximately 376,000 tonnes of SMP (skimmed milk powder) in public intervention stocks at the end of February. In common with the vast majority of EU Member States where dairy production is of significance within the broader agri-food sector, I recognised that this situation in respect of existing stocks could not be allowed to persist indefinitely.

Officials from my Department have been engaging with the Commission and with industry stakeholders, in order to facilitate the reduction of those stocks through the tender procedure, and following offers for tenders from market operators. Tenders for the purchase of approximately 4,000 tonnes and approximately 24,000 tonnes of SMP out of existing SMP intervention stocks were accepted in March and April of this year respectively. An orderly reduction in these SMP stocks is in my view the most appropriate means by which to deal with this overhang of stocks.

In parallel, my Department also engaged with the Commission on recent measures to limit further piling up of SMP in 2018 without due justification, including ensuring that the Commission's proposal to reduce the fixed price ceiling to zero be specified as for 2018 only, to avoid setting a precedent for the longer term. There has been no change to the fundamental provisions of the intervention mechanism, nor to the necessary supports that intervention provides during periods of market volatility.

Given the Commission’s effective status as among the world’s biggest players on the SMP market, and as such their capacity to affect market sentiment, it would be appropriate that they continue to act prudently and responsibility in the disposal of stocks. I am satisfied to date that the Commission has managed these stocks in a prudent manner.

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

Ireland is strongly positioned as a competitive producer of dairy products. 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. My Department will continue to work with our partners in the industry to develop measures which can minimise the effects of price volatility in the future and ensure sustainable growth.