Dáil Éireann Debate, Tuesday - 6 November 2012
891. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine his expectations in terms of the future development of the dairy sector post-quota; and if he will make a statement on the matter. [47929/12]
View answerIreland strongly supported the abolition of milk quotas from 2015 as they were widely regarded by both the Irish dairy sector and market analysts as a brake on the potential of the sector to respond positively to opportunities in the market. I expect that the Irish dairy sector will fully exploit this potential following the abolition of milk quotas on 1 April 2015.
In the medium term, this means achieving the target of a 50 per cent increase in milk production by 2020, as set out by industry stakeholders in the Food Harvest 2020 report. While this target is ambitious, it is one I believe that it can be achieved through a focused and determined implementation of the report’s recommendations for the dairy sector.
At farm level this will require improvements in on-farm competitiveness through, for example, animal health and genetic improvement programmes, as well as increased efficiency through education and technology transfer. My Department is playing its part in this regard through its continued support for ICBF and Animal Health Ireland, and through the Dairy Efficiency Programme which has provided a financial stimulus for participants in dairy discussion groups.
A processing sector with optimal capacity and maximum efficiency is also required, and in this regard, the capital investment plans of a number of the major players are already well advanced. There also needs to be a continued focus on commercially relevant R&D and marketing activities, and these aspects are being advanced through the activities of Teagasc and Bord Bia, in collaboration with the sector, with critical financial support from my Department.
In this regard plans for the development of a dairy sustainability and quality programme to exploit the already strong quality and sustainability credentials of the Irish dairy sector are well advanced. Bord Bia’s Origin Green Programme, which will involve industry players in signing up to achieving concrete sustainability targets will further develop the image of Ireland as a source of high quality food, including dairy produce.
With more than three quarters of Irish dairy production exported and with growth in global populations forecast to stimulate strong levels of demand for dairy products, I am working with the industry to raise the profile of both the Irish dairy sector, and the Irish agri-food sector generally in countries such as the US, in emerging markets in the Far East and North Africa and elsewhere.
There will of course be challenges, and increased input cost and price volatility will mean that operators at farm and processing level will have optimise their cost base, and develop mechanisms to protect income, perhaps through medium or long term supply contracts, or through other hedging mechanisms. The industry in Ireland has a history or resilience and innovation and I am confident that it is well placed to meet these challenges.
Bearing all of this in mind, I expect that the prospects and opportunities for the Irish dairy sector will expand significantly in the years following the abolition of milk quotas.
