Written answers

Thursday, 20 May 2021

Department of Agriculture, Food and the Marine

Milk Supply

Photo of Pádraig O'SullivanPádraig O'Sullivan (Cork North Central, Fianna Fail)
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25. To ask the Minister for Agriculture, Food and the Marine if will he intervene in the milk price crisis in a company (details supplied) and facilitate proper discussions between the suppliers affected and the company; and if he will make a statement on the matter. [26442/21]

Photo of Charlie McConalogueCharlie 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 supply volume during the peak production months of April, May and June from 2022 to 2024. Under these measures, price deductions will apply on milk supplies above a base beak volume and annual growth allowance determined by the processor. However, determination of milk supply mechanisms and associated pricing mechanism 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 at an early a stage as possible and on an ongoing basis to allow suppliers to plan their milk production and take account of any anticipated difficulties.

Whilst milk production in Ireland has increased significantly since the removal of milk quotas in 2015, the rate of increase has eased 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. I would like to take this opportunity to emphasis the importance my Department and this Government is placing on improving the sustainability of all sectors of Irish agriculture, including dairy.

The Climate Action and Low Carbon Development (Amendment) Bill 2021 has been published and will support Ireland’s transition to Net Zero and achieve a climate neutral economy by no later than 2050. It will establish a legally binding framework with clear targets and commitments set in law. It will ensure that the necessary structures and processes are embedded on a statutory basis to allow us to achieve our national, EU and international climate goals and obligations.

The measures provided for in this Bill include placing on a statutory basis a 'national climate objective', which commits to pursue and achieve no later than 2050, the transition to a climate resilient, biodiversity-rich, environmentally-sustainable and climate-neutral economy. This Bill is the platform that can allow Ireland to provide strategic leadership on climate change matters. Farmers and the land use sector are already contributing to the national effort to address the climate challenge. Our farmers have shown leadership in this area and I am confident that they will continue to do so.

My aim as Minister for Agriculture, Food and the Marine is to ensure that agriculture plays its role in contributing to Ireland’s Climate Change mitigation responsibilities whilst also ensuring that the sector can develop in an environmentally, economically and socially sustainable manner.

Photo of Thomas GouldThomas Gould (Cork North Central, Sinn Fein)
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26. To ask the Minister for Agriculture, Food and the Marine his views on the recent introduction of dairy caps by a company (details supplied); and if he will make a statement on the matter. [26931/21]

Photo of Charlie McConalogueCharlie 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 any 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 at an early a stage as possible to allow suppliers to plan their milk production accordingly.

Whilst milk production in Ireland has increased since the removal of milk quotas in 2015, the rate of increase has curtailed 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. I take this opportunity to emphasis the importance the Department and this Government is placing on improving the sustainability of all sectors of Irish agriculture.

The Climate Action and Low Carbon Development (Amendment) Bill 2021 has been published and will support Ireland’s transition to Net Zero and achieve a climate neutral economy by no later than 2050. It will establish a legally binding framework with clear targets and commitments set in law. It will ensure that the necessary structures and processes are embedded on a statutory basis to allow us to achieve our national, EU and international climate goals and obligations.

The measures provided for in this Bill include placing on a statutory basis a 'national climate objective', which commits to pursue and achieve no later than 2050, the transition to a climate resilient, biodiversity-rich, environmentally-sustainable and climate-neutral economy. This Bill is the platform that can allow Ireland to provide strategic leadership on climate change matters. Farmers and the land use sector are already contributing to the national effort to address the climate challenge. Our farmers have shown leadership in this area and I am confident that they will continue to do so.

In late 2020, I launched Ag Climatise, an ambitious and pioneering roadmap to deliver carbon neutrality by 2050.

My aim as Minister for Agriculture, Food and the Marine is to ensure that agriculture plays its role in contributing to Ireland’s Climate Change mitigation responsibilities, whilst also ensuring that the sector can develop in an environmentally, economically and socially sustainable manner.

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