Michael Ring
Question:172 Mr. Ring asked the Minister for Agriculture, Food and Rural Development if he will secure increased export refunds which help the dairy sector compete on the world market. [13480/02]
Written Answers. - Grant Payments.
Denis Naughten
Question:177 Mr. Naughten asked the Minister for Agriculture, Food and Rural Development the action he intends to take to address the income crisis in the dairy sector; and if he will make a statement on the matter. [13485/02]
Caoimhghín Ó Caoláin
Question:196 Caoimhghín Ó Caoláin asked the Minister for Agriculture, Food and Rural Development if, in view of the fact that the dairy industry is one of Ireland's largest industries and supports the largest number of farm families, and that the present price situation jeopardises the family farm structure, the action he proposes to take to address the alarming decline of approximately 25% in farming incomes within the past four years. [13696/02]
Michael Ring
Question:204 Mr. Ring asked the Minister for Agriculture, Food and Rural Development if he will negotiate with the EU for internal processing subsidies such as casein aid and ice cream and pastry aid which have the potential to deal with surplus EU product. [13785/02]
I propose to take Questions Nos. 172, 177, 196 and 204 together.
The international market situation for milk products entered a period of decline in the third quarter of 2001 and this decline has deepened since then. Demand is weak for all products in all markets, primarily due to the economic slowdown in key international economies.
In an effort to stimulate renewed demand I have pressed the EU Commission continuously for decisive action utilising all the market mechanisms available at EU level for this purpose. In the past month I have exerted particularly strong pressure on the Commission and I have put a range of proposals to Commissioner Fischler. These included the need to adopt a more aggressive export refunds policy, to prolong intervention for skim milk powder – SMP – and to encourage greater utilisation of internal supports. I am pleased that the Commission has responded to my proposals by increasing export refunds for cheese by 15%, further increasing SMP and whole milk powder – WMP – export refunds by 10% and 5% respectively, increasing aid for the manufacture of casein by 52% and agreeing to continue intervention for SMP in excess of the threshold of 109,000 tonnes by means of a tendering system.
These initiatives, taken in the past few weeks, follow a number of actions taken at EU level since the current market deterioration became evident last November. Export refunds for SMP and WMP were increased on five separate occasions, and together with the latest increase now stand at €715 and €1,078 per tonne respectively. Export refunds for butter were increased twice to their current level of €1,750 per tonne and private storage aid was introduced for both butter and cheese.
In addition, the main internal support measures such as aids for the use of butter in the ice cream and pastry sector and aid for the use of SMP in animal feed continue to take up significant quantities. I am fully aware of the situation and I will continue to closely monitor the market for dairy products in order to ensure that every possible action is taken at community level to stimulate demand and to protect the incomes of dairy farmers.