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Dáil Éireann debate -
Wednesday, 14 Feb 1990

Vol. 395 No. 7

Written Answers. - EC Intervention Facilities.

Paul Connaughton

Question:

6 Mr. Connaughton asked the Minister for Agriculture and Food if his attention has been drawn to any EC proposal which would withdraw or reduce EC intervention facilities to milk processors who manufacture so-called dairy spreads; if he is concerned at the huge decrease in butter consumption; if he is satisfied that sufficient intervention storage space is available; and if he will make a statement on the prospects for the dairy industry in 1990.

No proposal of the type referred to by the Deputy has been tabled at Community level. However, the decline in butter consumption is, of course, a cause for concern. The EC Commission has re-introduced intervention purchases to stabilise the market. Other measures are also being implemented to restore balance to the market in the medium term and to avoid an accumulation of intervention stocks.

Proposals to regulate the sale of substitute products are being formulated by the EC Commission with a view to establishing order in the yellow fats market. In addition, I have asked for increased emphasis to be placed on the promotion of the many beneficial attributes of dairy products to counter the increased market penetration by the substitute products.
I do not anticipate any difficulties with storage space for intervention purchases. I would expect that reliance on the intervention outlet will diminish again by the second quarter of 1990. Butter production in Ireland increased substantially last year at the expense of cheese production. The intervention outlet now allows the industry the opportunity to readjust its production in line with prevailing market conditions.
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