asked the Minister for Agriculture and Fisheries whether his Department have made any assessment of the likely financial loss to Irish dairy farmers arising from the present skim milk crisis; and, if so, if he will give details.
11.
Ceisteanna—Questions. Oral Answers. - Milk and Milk Products.
10.
asked the Minister for Agriculture and Fisheries whether his Department have conducted any survey into the magnitude of the present problem of surplus milk; and, if so, if he will give details.
12.
asked the Minister for Agriculture and Fisheries if, in view of the anxiety among dairy farmers arising from the present milk crisis, he will now clarify the situation by making a full and comprehensive statement on the market outlook for milk and milk products for the remainder of this year and for 1969.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 10, 11 and 12 together.
I would refer the Deputy to my replies to previous questions on these matters on 21st February, 3rd April, and 1st and 30th May.
In my reply on 30th May, I dealt comprehensively with the situation regarding skim milk and pointed out that current difficulties affect only a limited proportion of producers. I indicated the measures which are being taken to deal with the situation, mainly by promoting increased use of skim for livestock feeding. I would hope that the use of skim for this purpose will be so increased that there will be little or no loss to producers generally as a result of the collapse of the price of skim milk powder on export markets.
As regards milk supplies generally, the existing support system and marketing arrangements are not affected by the difficulties arising in export markets. With the obligation on An Bord Bainne to accept at 469s per cwt. all butter of the required standard offered to it, there is no reason why any creamery should be unable to dispose of its production.
There are heavy stocks of dairy products in a number of countries at present and prices on export markets have weakened considerably. This is leading to a substantial increase in the losses being incurred on our exports and unfortunately there are no grounds for assuming that there will be an early and sustained improvement in the export market situation. At the same time our milk output is expanding steadily and the creamery intake seems likely to exceed 500 million gallons this year as compared with 473 million gallons in 1967. Despite the export market difficulties, however, the expansion in the creamery intake coupled with the higher prices for calves this year will mean a substantial increase in the income of dairy farmers in 1968.
Does the Minister not consider the increased costs of production at all? Surely incomes and production costs should be considered together in this case? Costs of production have increased. The Minister says that production has increased and it continues to increase on his advice, the advice given in the small farms plan in the West and elsewhere, and, at the same time, is it not true to say that the income from milk will drop considerably in the present year?
No.
What advice is the Minister going to give the farmers in the future? Is he going to subsidise production to keep it at last year's level?
The income from milk, contrary to what the Deputy said, is going to increase and not decrease.
Because of decreasing quantities.
And increased yields as well.
Is the Minister aware it has been estimated by the farming organisations that the present crisis is costing the dairy farmers an average drop in income of £2 10s 0d per week? Could he say whether he proposes to take any action regarding the reported intention of An Bord Bainne to increase the levy which, if it were done, would cost the farmers a further 25s per week?
First, I do not understand the Deputy's assertion that the farmers' incomes have dropped by £2 10s per week. I do not quite understand this but perhaps the Deputy could enlighten the House. Secondly, as far as the Bord Bainne levy is concerned, this is a matter for the board over which I have no control whatsoever, this being their responsibility, as per the legislation passed in this House in 1961.
Would the Minister not agree that the Bord Bainne levy is due to the fact that the separated milk is not being taken from the farmers and as a result the creameries cannot afford to pay the prices they were paying before? That is the root of the evil. Would the Minister step in to safeguard the skim milk industry? If he did so, the crisis would be over.
I am afraid the Deputy has not clarified my mind very much.
Has the Minister considered the present position?
Let the Minister answer.
I do not quite understand what Deputy Esmonde is after. It does not follow on Deputy O'Donnell's line of thought. I am rather confused by the two as there seems to be a conflict.
The price of processed separated milk has fallen catastrophically, due to its subsidisation in Europe and, as a result of that, the Irish factories are not able to take the separated milk. Will the Minister give a guarantee to the factories, to tide them over the crisis, that the price of milk will remain the same as heretofore? If the Minister does not understand that, I will explain it to him privately.
That is not really necessary. I should like to tell the House and the Deputy that, far from the factories not getting the skim milk, the record to date is that they have taken in more separated milk for processing this year than in the same period last year. In addition to this, the amount of processed or skim milk sold out of stocks in that same period this year is in fact practically double what the sales were in the same period last year. So that things are not as black as the Deputy has been led to believe so far as this operation is concerned.
Question No. 13.
There is some reason for the fall in the price of milk. If that is not the reason, what is it?
The fall in the price of skim milk applies in some places only, and the amount of skim milk being taken in for use by the creameries and processing plants is just a little over one-fifth of the total. It is not all in trouble by any means.
Is it not a fact that in some cases they are refusing to take in milk?
Question No. 13.
13.
asked the Minister for Agriculture and Fisheries what facilities are available in Ireland at present for research into the processing of milk and the manufacture of dairy products; and if he will give details of (a) the number of research workers employed, (b) the new products, if any, which have already been developed for marketing and (c) the new products which are likely to be developed for marketing in the future.
The Dairying Research Centre of An Foras Talúntais at Moorepark, Fermoy, has adequate field and laboratory facilities for research into the various branches of dairying. I am informed that the number of research staff at the centre is 33.
Among the products and processes developed or improved by An Foras, in many cases in conjunction with An Bord Bainne and firms in the dairying industry, are the continuous method of manufacture of salted butter, the production of canned butter, the manufacture of ripened cream butter and the satisfactory production of butter-oil. An Foras also took part in developing manufacturing processes involving manufacturing problems for a number of products. I understand that An Foras has at present in hands 17 separate research projects in dairying but it would obviously be unwise to give particulars of these publicly.
Research into dairying problems is also conducted by the teaching staff, currently numbering 36, attached to the Dairy Science Faculty at University College, Cork. Particulars of the Faculty's research activities are given in the annual reports of my Department.
14.
asked the Minister for Agriculture and Fisheries the purpose of his recent meeting in Limerick with representatives of various milk processing firms; whether any new proposal or plans for disposing of surplus milk emerged from this meeting; and, if so, if he will give details.
A general discussion on various aspects of the dairying industry took place at the meeting in question, which was requested by a number of co-operative societies in County Limerick.
Any developments as a result of that meeting at Limerick, other than the fact that it was held a few days before polling day?
Does that annoy the Deputy?
Has there been any development?
If the Deputy would clear my mind as to which of the two things he wants to know about —why it was held two days before polling day or the result—I might be able to help him.
The Minister says he has given it consideration: does he intend to give any additional State aid at the present time and in the present crisis?
Where is that asked for?
It is asked for in the other questions here; they are all the same.
Why did the Deputy not raise it on the other ones, because it is not in this one?
The Minister is not answering it of course.