Dáil Éireann Debate, Tuesday - 21 May 2013
566. Deputy Michael Moynihan asked the Minister for Agriculture, Food and the Marine in view of the fact that milk commodities are now returning double figures on the world market than in May 2012, his views on the fact that the processors are not passing on the price increases to the milk suppliers; if he has met with milk processors to discuss same; and if he will make a statement on the matter. [23740/13]
View answerThe price paid for milk is a commercial matter between milk producers and their purchasers, and is determined by a combination of the international market for dairy products, the product mix of the dairy processor and the efficiency of processing. As Minister for Agriculture, Food and the Marine I do not have a role in setting prices. However, as most processors in Ireland are co-operatives, dairy farmer members are represented at Board level in those organisations. Dairy markets are performing strongly at present, and processors have announced an increase in their milk price in recent weeks.
While market volatility means there will always be short term fluctuations in dairy prices, the medium term prospects for global dairy markets are good. Growth in global population and wealth is forecast to stimulate strong levels of demand for dairy products. Against that background, I believe that prospects and opportunities for the dairy sector will expand significantly over the coming years.
