Billy Timmins
Ceist:9 Mr. Timmins asked the Minister for Agriculture and Food her position with regard to future dairy quota reform; and if she will make a statement on the matter. [29293/04]
Amharc ar fhreagraThursday, 18 November 2004
Ceisteanna (9)
Freagraí ó Béal (5 píosaí cainte)
The existing milk quota restructuring scheme model has been successful in helping to increase the average quota size by approximately 25% since 2000. However, in light of the mid-term review of CAP reform decisions, substantially increased scale at producer level is needed to achieve competitiveness in the dairy sector and to maintain producer incomes. The manner in which scale can be increased, taking account of regional and other factors, needs careful consideration. In this context the operation of the restructuring scheme is being examined to determine whether it can be more responsive to the demands of the post MTR era. Since my appointment I have consulted the stakeholders and intend to seek the views of the milk quota review group before making my decision.
When does the Minister hope to publish the review? Given the significant mark-up of 126% on the price of milk between the time it leaves the farm gate and reaches the kitchen, and the significant pressure on producers, have there been discussions between the Department and the creameries and co-operatives regarding how efficiency can be improved and the benefit passed on to the farmer, whose income is being squeezed all the time? What are the Minister's plans for the ring-fenced quota? Are there plans to amend it?
I can see the headline and the sales of the Irish Farmers Journal going through the roof. I have met most of the creamery representatives and I hope to meet the remainder next week. I have also consulted colleagues and the farming organisations. The bottom line is market forces are involved and the price of milk must be reduced. That has been agreed but it will affect the producer. It is, therefore, important that efficiencies should be achieved. A number of creameries have employed individuals to introduce efficiencies within their schemes. For example, Connacht Gold has employed people to support the sector and increase efficiencies. Previous decisions have assisted producers north of the Shannon to reach the national average of approximately 45,000 gallons.
The Deputy will appreciate where I come from on the issue of ring-fencing. I do not want the dairy industry to be concentrated in only one region as that would be bad for agriculture and would reflect poorly on rural development. The issue of ring-fencing has, therefore, not been up for discussion. People are abundantly aware of my views. A balance must be struck between a farmer who, heretofore, under the milk quota scheme received a few thousand gallons to bring him up to the national average even if he was a small producer and a producer in Munster who received only 200 gallons. He must be given the opportunity to scale up in line with market conditions. I will consider this issue and I hope to make a decision by the end of December.
I refer to the issue of efficiencies. The co-operatives and creameries are in discussions with producers to improve efficiencies, but industrial relations issues arise within the co-operatives in regard to the processing of milk and the manufacture of value added products. Is the Department working with the processors to improve efficiency and liquid milk outputs and to pass on the benefits to the farmer? There has been a fall-off in the uptake in the dairy hygiene scheme this year. What measures have been taken to improve that uptake for 2005?
This is a time of change. People are at a cross-roads and they have been indecisive with regard to whether they will invest, the future of their farming projects and the future profile of farming in the aftermath of the single farm payment. On that basis, not as many people as heretofore have made applications to the Department. I expect a greater increase at the beginning of next year.
With regard to the efficiency within plants, market forces will decide this issue for the creameries and factories. Efficiency is an issue on the production side. The issue existed some years ago when we were dealing with rationalisation and it caused difficulties with the farming fraternity. We are international leaders in the dairy industry and it is important we remain at that level. Without wishing to show disrespect to the industry, I point out that supports have been made available. I will certainly push the issue of research and development, not just to examine efficiencies but to examine alternatives for the dairy industry. The Department will pursue that vigorously.