Vol. 572 No. 1
107 Mr. Timmins asked the Minister for Agriculture and Food the developments to date with respect to his discussions on the restructuring of the dairy and beef industries; and if he will make a statement on the matter. [22605/03]
The Prospectus report which examined the existing structure of the Irish dairy processing sector made a number of recommendations on actions to improve the efficiency and long-term competitiveness of the industry. The main findings included the need to increase scale and reduce costs in order to position the sector to withstand international competition and increase our penetration of high value EU consumer markets. This would include improving the product mix to meet the demands of these markets and would in turn demand increasing the expenditure on research and development. At production level the need to achieve increased scale was also a clear requirement.
Since the launch of the report, I have met with the various processing groups and Enterprise Ireland to discuss the implementation of the report and identify any areas where I may be able to assist or facilitate with the changes required in the Irish dairy industry. While I have made it clear that my Department and other State agencies will help in any way possible, discussions in relation to the best processing structure and the type of product mix best suited to Irish conditions and market requirements are a matter for the management and boards of the individual undertakings.
The need for increased scale at production level has also been identified. I will, in conjunction with all of the interested parties, be examining quota restructuring systems with a view to improving the access to quota by active committed producers who require additional quota to remain competitive into the future.
Last month, I convened a dairy forum at which all of the main organisations, representing both producers and processors were present. The purpose of that forum was to afford an opportunity to all sections of the industry to give their views in relation to the present state of the sector, the changes necessary for the future and how these changes might be achieved. The contributions of the various parties at that forum were very constructive and I would hope that they will act as a stimulus to the industry to embark on the changes necessary to secure its future and development in the medium and longer term. One of the views which came forward was that it would be beneficial to the industry if the dairy premium could be decoupled as soon as possible.
