Dáil Éireann debate -
Thursday, 22 May 2003

Vol. 567 No. 3

Written Answers. - Common Agricultural Policy.

Liz McManus

Question:

60 Ms McManus asked the Minister for Agriculture and Food his views on the recent Teagasc report that dairy and beef farmers would do better arising from the CAP reform proposals; and if he will make a statement on the matter. [14001/03]

Minister for Agriculture and Food (Mr. Walsh)

The FAPRI Ireland study on the effects of the Commission's full mid-term review, MTR, proposals and World Trade Organisation, WTO, trade negotiations farm level analysis shows that the majority of Ireland's dairy and beef farmers would do better as a result of the implementation of the EU proposals for reforming the Common Agricultural Policy.

The independent study found that the Commission proposals would result in a decline in the number of dairy farmers. However, dairy farmers who remain in production would be better off due to an increase in milk output. Those who leave the industry after 2004 would also do better because they would retain their entitlements to the dairy payments.

The analysis found that following the implementation of the reforms the majority of beef farmers would experience some improvement in income arising from a drop in output and lower input costs. These are predominantly smaller producers already earning relatively low incomes. FAPRI Ireland has also stated that there would also be an increase in part-time cattle farmers.

The study found that the implementation of the reforms would lead to a more competitive and efficient Irish industry, as the motivation to continue loss-making production would be removed. I am now referring the study to a series of expert consultative groups to obtain their views.