Matt Carthy (Cavan-Monaghan, Sinn Fein)
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2546. To ask the Minister for Agriculture, Food and the Marine if he has examined recent reports of suppliers in the dairy industry using price mechanisms to limit the supply of milk; his views on whether this may be in contravention of EU regulations; and if he will make a statement on the matter. [20272/21]

Charlie McConalogue (Donegal, Fianna Fail)
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I am aware of reports of a processor in the dairy industry stating its intention to introduce temporary measures to manage milk supplies during the peak production months from 2022. However, determination of pricing and supply mechanisms is a commercial matter for processors and suppliers, in which I as Minister,have no role.

The impact of peak milk production, which has been managed to date through co-operation in the dairy industry, is nonetheless an issue on which I would encourage all processors to engage with their suppliers. It is vital that this engagement takes place in advance of the yearly dairy breeding season in order to allow suppliers to plan their milk production accordingly.

Whilst milk production in Ireland has increased significantly since the removal of milk quotas in 2015, the rate of increase has reduced in recent years. It is important that processors and their suppliers work together to ensure that the Irish dairy sector can effectively manage the next stage in the development of a sustainable Irish dairy sector.