asked the Minister for Agriculture and Fisheries if his attention has been drawn to the report of the UNFAO in which it is stated that dairy product supplies are increasingly exceeding commercial demand; and if he will indicate how this situation is likely to affect the dairying industry in this country.
Ceisteanna—Questions. Oral Answers. - Dairying Industry.
9.
The commercial demand for milk and milk products for human and animal consumption has been adversely affected by the world trade recession, by higher prices on domestic markets and in some cases by a lower cost of competing foods and feedingstuffs. This is particularly so in the case of individual products such as skim milk powder and to a certain extent, cheese.
Naturally, this is an unwelcome trend in so far as milk exporting countries are concerned. Nevertheless, I am convinced that the situation is a temporary one which will rectify itself within a relatively short space of time. I am confident that, in the meantime, the excellence of our own dairy products and of the arrangements which exist for marketing them will stand us in good stead and will necessitate our having only minimal recourse to sales into intervention.
Is the Minister prepared to say what would be a reasonable time? Will it be two or three years?
I would hope that it would not be anything like that.
Does not the report say this year or next year?
Yes.
That would mean at least two years?
Yes, What are we trying to do? Are we trying to encourage or discourage people by saying we will have a mountain of everything? We have to get people to believe there is a future in farming. If we say we will have a milk powder mountain, a butter mountain, a cheese mountain, people will be afraid to do anything. Since we joined the EEC I saw a milk powder mountain, but it vanished. At one stage we had not enough for food aid after great complaints in the EEC about a milk powder mountain.
There are 500,000 tons there now.
There were 350,000 tons at one stage and they disappeared like that.
In answer to the Minister's question to me, I would be glad if we could do this. We should try to avoid a situation in which farmers' products would have to be disposed of at a cheap price. I put down the question so that this information would be available to the farming community.
I do not misunderstand the Deputy's motive in putting down the question.
It is in conflict with a previous question.
There is always the danger in putting down these questions that we may discourage people when they should be encouraged.
Does the Minister's reply indicate that a proper survey is not being carried out on consumption trends within the EEC? Is any attempt being made in the Common Market to study consumption trends?
Yes.
It does not seem to have borne fruit.
The EEC were short of this type of expertise. They are building it up now.
Does the Minister anticipate any limitations in the operation of intervention for skim powder this year?
As Deputy Gibbons knows, there is pressure all the time from the Commission to hold farmers responsible for their own surpluses.
Co-responsibility.
It is described as co-responsibility. We have to resist it for as long as we can.
Can the Minister say whether in his opinion intervention will be limited for skim powder this year?
No such statement or recommendation or proposal has been put before us so far. That is all I can say.