Bernard J. Durkan
Question:184 Mr. Durkan asked the Minister for Agriculture and Food if he will outline his views on and proposals for growth in the dairy sector; and if he will make a statement on the matter. [5342/04]
View answerWednesday, 18 February 2004
Questions (115)
Written answers
The future development of the dairy sector is a priority for me. I will provide assistance to encourage the sector to make the necessary changes, both at producer and processor level, to strengthen and improve its position in the increasingly competitive international markets.
The EU milk quota regime was extended until 2014 or 2015 under the mid-term review and a volume growth in milk output is restricted. However, there is considerable potential for increasing the value of our national milk output. There is potential to improve the composition of raw milk at farm level by increasing the protein levels and to add further value to the product at processing and marketing level. The changed EU market supports, coupled with the extension of the milk quota regime, will require Irish dairy processing companies to look at alternative opportunities to develop and enhance their position on the international markets.
The movement towards higher value added products and the need for greater expenditure on research and development was one of the key recommendations of the prospectus report launched last March. It also recommended a need for increased scale and greater cost efficiency throughout the sector.
The dairy sector has great potential to grow and develop notwithstanding the increasingly competitive international environment. In order to realise the potential, the industry must have regard to the best international practice in all respects from the farm right through to the final customer and must address those issues identified as being essential to the maintenance of international competitiveness.