Bernard J. Durkan
Ceist:49 Mr. Durkan asked the Minister for Agriculture and Food his plans for the future of the dairy industry. [9234/04]
Amharc ar fhreagraWednesday, 24 March 2004
Ceisteanna (49)
Freagraí scríofa
The future of the Irish dairy sector will be influenced by a number of factors, including the implementation of the mid term reform, MTR, of the CAP and the enlargement of the EU on 1 May 2004.
Enlargement of the EU will provide increased marketing opportunities in the new member states while also bringing increased competition to the EU market. The MTR, by setting new intervention limits and reducing intervention prices, has highlighted the need to become less reliant on commodity products and to increase the added value nature of our output. This was also identified by the prospectus report which concluded that the future success of the industry was dependent on a number of factors including its ability to increase scale and efficiency, reduce costs, and increase research and development. There is a real need to ensure that our product mix meets the demands of the marketplace and allows for reasonable return on production.
During recent months, I have met most of the major players in the dairy sector to discuss the implementation of strategies for the future and to identify any areas where I may be able to assist or facilitate with the changes required in the Irish dairy industry. It is clear that the prospectus report provided the industry in general with an opportunity to examine its strengths and weaknesses, and to consider the best options for the future. While my Department and the other relevant State agencies will provide whatever assistance is possible in this process, the ultimate decisions in relation to processing structure and product mix are a matter for the management and boards of the individual undertakings.
On production at farm level, producers will also have to look at increasing the scale of their operations, reducing costs where possible, and improving the quality of the milk they produce. The MTR has ensured the extension of the quota regime until 2014-15. There is a clear need now, more than ever, to assist those who wish to expand their operations within this new environment. The decision, which I made to bring forward the decoupling of the dairy premium to 2005 should help those who wish to expand. Producers who have activated their entitlement will be able to cease production while retaining the direct payment, thus freeing up additional quota for those who remain in production. It will continue to be my policy that milk quota becoming available in Ireland benefits, as far as possible, those active, committed producers on whom the future of the industry depends.