Vol. 521 No. 6
10 Mr. Broughan asked the Minister for Agriculture, Food and Rural Development if he has concerns at the increasing level of butterfat now evident in Irish milk, and the subsequent super levy penalties which are being incurred; the measures he proposes to deal with this matter; and if he will make a statement on the matter. [17771/00]
In addition to the provisions for the imposition of a super levy on the volume of excess milk deliveries, the relevant EU regulations also include measures to restrict increases in the fat content of milk deliveries. Penalties are imposed when the butterfat content of milk deliveries during a milk quota year exceeds the national butterfat representative level. Each producer has a butterfat representative level, which is based on the fat content of his or her milk deliveries during either the 1984-85 or 1985-86 milk quota years, whichever is higher. At the end of each milk quota year, milk deliveries of each individual producer are adjusted to take account of the difference between the actual fat content of the producer's milk deliveries and his-her butterfat representative level. The actual milk deliveries are adjusted upwards or downwards by 0.18% for each 0.1 grams/kg difference between actual fat and butterfat representative level.
Each year every co-operative-dairy submits details of the aggregated total of their producers' actual deliveries and fat adjusted deliveries. On the basis of these figures, the overall totals at national level are calculated by my Department and, in accordance with the relevant provisions in the EU regulations, super levy liability is calculated on the higher of the two quantities, that is, actual or fat adjusted milk deliveries, provided that this quantity exceeds the national quota.
In the 1997-98 milk quota year, the fat adjusted milk deliveries exceeded the actual deliveries as well as exceeding the national quota. The super levy liability was, therefore, established on the basis of the fat adjusted deliveries. The same situation will apply for the 1999-2000 quota year. For the 1998-99 quota year, even though the fat adjusted figures exceeded the volume figures, no super levy applied as the national quota was not exceeded.
In most member states of the EU where super levy has been incurred over recent years, the levy has been established on the basis of butter fat adjusted figures. Over the past decade the trend in Ireland in relation to increases in butterfat levels is consistent with the general trend in other member states.
A decision to take measures to increase or reduce butter fat levels is essentially one for producers themselves. Such a decision would obviously take account of all commercial factors involved.
Has the Department any idea of the monetary loss farmers have sustained as a result of EU regulations and the increase in butterfat over the last decade? What penalties have been imposed on individual farmers or is there a method of ascertaining that? What education campaign has been conducted by Teagasc and the relevant State agencies to ensure that farmers are aware of the impact of this new regulation? It applies throughout Europe. What efforts are being made to influence management practices at producer level to ensure producers do not suffer a penalty which they need not suffer if they apply the appropriate management practices?
When milk quotas were introduced, our average fat content level was 2.9%. Through better nutrition, breeding and management the level is now at an average of 3.58%. There is a substantial change. I am anxious to encourage less emphasis on fat and more emphasis on protein. That would not impact as badly on producers.
During the Agenda 2000 negotiations, efforts were made to change the butterfat criterion but the proposal fell on deaf ears. Research is being carried out into measures to increase the protein content of milk without increasing its butter content. Reducing butter content should be encouraged by the industry. Greater protein content is the way forward rather than taking total solids into account.
Will the Minister revisit this matter at European level? Our index butterfat levels in 1982 were well below those of our European counterparts. Some countries have over 4% butterfat content at present. Due to breeding and nutrition our cows are now producing a higher content level. There must be a strong case for revisiting this issue. Ireland got short changed on butterfat. We are talking about a curtailment of quota due to the way the butterfat levels have increased.
What research has been done to find the cause of it? How many dairy farmers were affected by this and is there grant aid available from the Department to assist them in relation to the losses they incurred?
I assure Deputy Connaughton that this matter has been revisited on a number of occasions and was raised at the highest levels during the Agenda 2000 negotiations.
Will it be raised again?
Of course. It is our job to assist Irish farmers. We are not interested in penalising farmers in any way. With regard to Deputy Ring's question, I do not have the number of farmers who were penalised for high levels of butterfat. I am sure they are available. Perhaps the Deputy would put down a relevant parliamentary question for next week when the information can be provided.
