Dáil Éireann Debate, Wednesday - 18 February 2004
125 Ms Shortall asked the Minister for Agriculture and Food if his attention has been drawn to a recent survey conducted by Teagasc showing that one third of dairy farmers plan to leave the industry in the next three to ten years; the consequences this may have for the future of the dairy industry here; and if he will make a statement on the matter. [4942/04]
View answerI am aware of the work to which the Deputy refers. For some time it has been clear that it is necessary for many producers in the dairy sector to scale up their operations in order to continue to operate profitably. This was identified in the report of the agri food 2010 committee and more recently in the Prospectus report. A reduction in the number of milk producers and the consequent scaling up of production by those remaining has been a feature of the sector in Ireland, in other EU member states and indeed in developed countries over several years.
I hope that the decoupling of the dairy premium from 2005, which I announced late last year, will put producers in a better position to make decisions, based on their own particular situations, whether to continue in the industry or to exit from milk production and pursue alternative enterprises.
As regards the future of the dairy sector, it is quite clear that further restructuring at production level will be a feature of the coming years for the dairy sector. The need for increased scale, at all levels within the dairy industry is necessary given our export dependence and the need to remain competitive on international markets.
