Dáil Éireann díospóireacht -
Wednesday, 9 Oct 2002

Vol. 554 No. 5

Written Answers. - Farm Incomes.

John Perry

Ceist:

284 Mr. Perry asked the Minister for Agriculture and Food the plan he has in place to address the crisis in dairy incomes; if his attention has been drawn to the fact that, if the milk price had kept pace with inflation, the price would currently be at about 39 cent per litre and not the current level below 28 cent per litre; and if he will make a statement on the matter. [15931/02]

Minister for Agriculture and Food (Mr. Walsh):

The price paid to milk producers is based on a combination of factors, including the products manufactured, the commercial return on these products on domestic and international markets and the EU market supports available as appropriate.

The market for milk products is now showing early signs of recovery after a period of weakness due to reduced international demand, which coincided with a deteriorating world economy and increased production both within the EU and in third countries.

The market downturn became evident in the third quarter 2001 and since then I have pressed very hard at EU level to ensure that all available market mechanisms were mobilised in an effort to stimulate market recovery. As a result, export refunds were increased for skimmed milk powder and whole milk powder on seven separate occasions, export refunds for butter were increased three times, and cheese refunds were increased by 22%. Also, the rate of aid for casein production was increased in three steps by 83%. In addition, large quantities of butter and skimmed milk powder have been placed in intervention, thereby taking large volumes of product off the market.

This represents a very significant volume of activity in the management of the market and I am satisfied that these measures will continue to stimulate the market in the months ahead and help to alleviate price pressure at producer level.