Against the background of the abolition of milk quotas on the 1 of April 2015, my Department has been providing a range of supports to assist the dairy sector in its efforts to fully exploit its potential for expansion and development. It is clear that in the context of a quota free production environment, Ireland’s natural advantages in terms of climate and grassland provide a tremendous opportunity for the dairy sector, particularly in light of expanding global population and demand for dairy products.
It is against this background that the industry has set an ambitious but achievable 50% target for expansion in output in the Food Harvest 2020 Report. Meeting this target will require positive and pro-active action to improve efficiencies at farm level, to increase processing capacity, and to improve breed quality and animal health.
My Department has provided a range of critical supports through measures such as the New Entrants to Dairying Scheme, which helps to revitalise the sector through the provision of milk quota to dynamic young educated farmers, through the Dairy Efficiency Programme, which encourages the adoption of best practice management and production methods on farm, through the provision of financial support for ICBF and Animal Health Ireland to improve breed quality and animal health. My Department has also made up to €40m available through its Rural Development Programme for investment on farm, as well as €80m in capital investment support for the processing sector through the Dairy Investment Fund
Teagasc and Bord Bia are also playing their part in ensuring a continued focus on commercially relevant R&D and marketing activities, and these aspects are being advanced in collaboration with the sector, with critical financial support from my Department.
Against this background, I believe that the opportunities for the dairy sector will expand significantly over the coming years and I can assure the Deputy that my Department and its agencies will continue to play their part in providing an appropriate framework to support the development of this critically important industry.