Joe Sherlock
Ceist:147 Mr. Sherlock asked the Minister for Agriculture and Food his plans to promote diversification into consumer-led dairy products; and if he will make a statement on the matter. [25593/03]
Written Answers. - Dairy Industry.
In conjunction with Enterprise Ireland and the dairy industry, I initiated a strategic review of the dairy processing sector during 2002. Prospectus and Promar International undertook this major consultancy study and their report identified weaknesses in the industry including a lack of appropriate scale for today's conditions and an over dependence on commodity products and intervention. The report recommended greater expenditure in research and development to allow the development of a greater range of consumer-value added products and its key message is that the success and long time survival of the industry is critically dependant on its ability to transform itself and deliver on the key strategies set out.
A fundamental part of the next stage of development for the Irish dairy sector is the need to increase expenditure on research and develop ment. A key element in becoming more market-led in our approach is to ensure we concentrate sufficiently on researching and developing the products which not only consumers want and are prepared to pay for today, but those which they will want into the future. There is evidence that the Irish dairy industry invests less in research and development than its international competitors and this is something which needs to be addressed.
Since the publication of the Prospectus report, I have had a series of meetings with representatives of most of the main processing undertakings. In September, 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 regarding the present state of the sector, the changes necessary for the future and how these changes might be achieved. Enterprise Ireland also participated and outlined the main areas where State grant assistance would be available to the industry. Involvement in research and new product development was the principal area which would benefit.
Overall, the need for greater investment in research and development and the need for continued diversification of its product range has been clearly identified as an objective for the entire food industry, including the dairy industry. The prepared consumer foods sector is the fastest growing sector of Irish industry and recently Enterprise Ireland, in co-operation with my Department, launched the Prepared Consumer Food Strategy 2003-2006. The commitment of the Government to assisting such developments in the dairy industry is clear from the offers of assistance from Enterprise Ireland and from the development and funding of world-class research facilities at Moorepark. The contribution by my Department to the funding of the food research programme is also of particular use to the dairy industry. Ultimately, decisions as regards investment in these areas are for the industry itself, however, and in practice for the boards and the management of the individual companies involved.