Vol. 457 No. 6
93 Mr. Leonard asked the Minister for Agriculture, Food and Forestry if he proposes to seek an EU review of the operation of the milk quota system for primary producers in view of the buoyancy of milk products in world markets and the substantial increase in production of milk in the non-member states. [15850/95]
Milk producers have been enjoying extremely good prices this year and I am, of course, anxious that they should continue to derive the maximum possible benefit from the current buoyancy in markets. I am also anxious that any change in the future to the EU dairy regime, either to the quota system or to the market support mechanisms, should be to the longer-term benefit of the Irish dairy sector. A study is currently being completed on the best policy options for the Irish sector in this context.
The levels of production in third world countries as well as the degree of internal support provided in the Union will also be relevant issues.
I should add that a major element in the present situation is that EU production is still well in excess of real demand in the Union. About 20 per cent of production is marketed with the benefit of export refunds or internal subsidies.
