Vol. 476 No. 7
404 Mr. Kirk asked the Minister for Agriculture, Food and Forestry if his attention has been drawn to the serious reduction in milk prices to farmers; the plans, if any, he has to reverse the current trend; and if he will make a statement on the matter. [8374/97]
The price paid to milk producers for their milk is essentially a commercial matter between themselves and their milk purchasers. While the price for butter and SMP is supported under the EU common organisation of the market for milk and milk products, the actual price for milk paid to producers is a function of a number of factors, including the products into which the milk is processed and the markets on which those products are sold.
It is the case that international dairy markets have weakened during 1996 and this is now reflected in the price being returned to producers. It is also the case that recent revaluations of the Irish green rate have given rise to a reduced level of support in Irish pounds. As regards the latter, the compensation package, which I recently announced, will offset some of the effects on producers' incomes of the recent revaluations.
