Jim O'Keeffe
Question:42 Mr. J. O'Keeffe asked the Minister for Agriculture and Food the steps he proposes to address the crisis confronting milk producers. [13955/02]
Written Answers. - Milk Production.
Jack Wall
Question:43 Mr. Wall asked the Minister for Agriculture and Food the steps being taken to address the serious crisis facing dairy farmers, many of whom have seen their incomes fall by up to 30%; and if he will make a statement on the matter. [13966/02]
Martin Ferris
Question:47 Mr. Ferris asked the Minister for Agriculture and Food the action he proposes to take to address the alarming decline of approximately 25% in farming incomes within the past four years. [13960/02]
I propose to take Questions Nos. 42, 43 and 47 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. Given the export dependence of the Irish industry the international environment has a particular impact.
In an effort to stimulate renewed demand I have pressed the EU Commission continuously for decisive action utilising all the market mech anisms 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. In relation to this tendering mechanism, I have asked the Commission to ensure that it is used to ensure maximum stability for the skim market on an ongoing basis.
These initiatives, taken in the last 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 of the concern of milk producers. 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.