Dan Neville
Ceist:96 Mr. Neville asked the Minister for Agriculture and Food the discussions she has had at EU level to protect dairy supports; and if she will make a statement on the matter. [8844/07]
Amharc ar fhreagraThursday, 8 March 2007
Ceisteanna (98, 99)
Simon Coveney
Ceist:104 Mr. Coveney asked the Minister for Agriculture and Food the steps she is taking to support dairy incomes; and if she will make a statement on the matter. [8835/07]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 96 and 104 together.
Despite the greater challenges brought about by the implementation of the 2003 Luxembourg Agreement to reform the Common Agricultural Policy (CAP) the Irish Dairy Sector performed well in 2006 with exports of €2.08bn.
Dairy farmers incomes are made up of the market price paid for milk and direct income support from the EU. The average price paid to producers in 2006 was 26.4 cent per litre. Added to this is the dairy premium, a direct payment amounting to 3.6 cent per litre equivalent to €180 million in 2006. In total this gives an average return of 30 cent per litre. This average return for 2006 was comparable or better than the return to producers in the previous three years.
At EU level, I have consistently challenged the pace and rate of reduction in support implemented by the Commission. In the wider context of W.T.O. I have strongly defended the CAP as a whole and have advocated a EU position that fully takes account of the needs of Irish agriculture including the dairy sector in the areas of internal support, export support and market access. At every opportunity I have impressed on Commissioner Fischer Boel and colleagues from other Member States the importance of a competitive combination of market supports to provide the platform for a sustainable and vibrant EU dairy sector.
At national level I have implemented new initiatives to stimulate investment at processor level and to assist active committed producers develop greater efficiencies and generate economies of scale.
I introduced a new Milk Quota Trading System which provides a more open market system of transferring quota. The system allow farmers much greater freedom to make choices about how much milk quota should be transferred, affording them far greater scope to decide the volume and price of quota they wish to buy and sell.
I have also established a €300 million investment package for the dairy sector. The investment fund includes €100 million of Government grant assistance. One of the key aims of this package is to allow Irish dairy processors generate greater efficiencies to better support the dairy farmers incomes.