Dáil Éireann Debate, Thursday - 17 November 2016
231. Deputy Niamh Smyth asked the Minister for Agriculture, Food and the Marine if there is dedicated funding that does not involved taking out finance available to dairy farmers in counties Cavan and Monaghan who are struggling to pay their bills; and if he will make a statement on the matter. [35561/16]
View answer232. Deputy Niamh Smyth asked the Minister for Agriculture, Food and the Marine the reason there is no monetary incentive for farmers who comply with the Bord Bia dairy inspection similar to the premiums offered in the beef sector; and if he will make a statement on the matter. [35577/16]
View answerI propose to take Questions Nos. 231 and 232 together.
As Minister for Agriculture, I am concerned with the livelihoods of farmers in all sectors in each of the 26 counties. I am acutely conscious of the pressure farmers are under at present, and I can assure the Deputy that I am committed to exploring all of the appropriate options for providing assistance to the farm sector through current difficulties.
After a prolonged period of price volatility in dairy markets, there are some tentative signs of recovery. However, volatility will continue to be a feature of global dairy markets. There has been significant progress in terms of responses from all stakeholders across a number of areas, with EU measures, initiatives by processors and a new flexible loan fund for dairy and other farmers announced in Budget 2017.
On the market front, since taking office I have led trade missions to Asia and to North Africa, with a view to increasing the profile of Ireland as a producer of quality food products, particularly dairy products. This work on market diversification is a critically important element in mitigating market volatility and is particularly important in the context of Brexit.
On-going efforts within industry to move dairy production up the value chain wherever possible are also critically important and continue to be supported by Government. These efforts are supported by investment by my Department and its agencies in research and innovation. By providing financial support for Teagasc, ICBF and Animal Health Ireland, and for knowledge transfer groups, we continually invest in the provision of advice and education to farmers, which facilitates technology adoption and improves profitability at farm level. My Department is also providing support for investment at farm level through the TAMS scheme.
The Dairy Quality Assurance Scheme is also critically important in developing a unique selling point for Irish dairy products on EU and international markets. Dairy processors make a substantial contribution to cover some of the costs of audits under the scheme, but of course the question of price incentives for participation is a matter for the industry.
Where appropriate, we must continue to focus on appropriate national and EU measures that can play a role in supporting the sector. It is vital that we continue to work closely with the Commission and all other key stakeholders in this regard.
The Commission, in many instances based on suggestions from Ireland and other like minded Member States, has already deployed a range of market supports including intervention and Aids to Private Storage, and a financial package of €500 million for liquidity assistance was agreed at the Agriculture council in September 2016, with Ireland topping up its allocation to provide a total assistance package of approaching €27M to Irish farmers in late 2015 and early 2016.
The Commission also announced a further €500m support package for EU farmers in July 2016. The first €150m was reserved for an EU-wide scheme compensating farmers who reduce their milk output over certain reference periods towards the end of 2016. This was very well subscribed to in Ireland and, should the commitments for reduction be adhered to, will be worth over €10M to Irish dairy farmers in 2017.
For the other element of the Commission package, €350m is set aside for Member State initiatives with fixed allocations per MS. Ireland’s allocation under this scheme is €11m. I have decided to provide an additional €13 million national aid in that in order to optimise the effectiveness of this measure and to use it to support the development of a €150 million fund for low interest loans for farmers.
A further measure that has assisted in reducing the burden on all farmers, including those in the dairy sector, was the negotiation and agreement of advanced payments for the Basic Payment and the RDP schemes, allowing us to pay out 70% and 85% respectively from 16th October.
I can assure the Deputy that I will continue to work closely with the dairy sector, with EU colleagues and International counterparts to ensure the development and maintenance of a sustainable dairy sector in Cavan, Monaghan and elsewhere.
