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Milk Quota Purchases

Dáil Éireann Debate, Tuesday - 25 September 2012

Tuesday, 25 September 2012

Ceisteanna (67)

Seamus Kirk

Ceist:

67. Deputy Seamus Kirk asked the Minister for Agriculture; Food and the Marine his plans to ensure that there will be adequate processing capacity to process the increased milk output expected after the ending of the quota regime in 2015; and if he will make a statement on the matter. [40439/12]

Amharc ar fhreagra

Freagraí scríofa

Food Harvest 2020 is a strategy for the development of the Agri-Food sector drawn up by industry stakeholders, in conjunction with my Department. Specifically within the dairy sector, the stakeholders identified the abolition of the milk quota regime in 2015 as a real opportunity for the sector to expand. Ireland strongly supported the abolition of the regime, on the basis that quotas were widely regarded by both the Irish dairy industry and market analysts as a brake on the potential of the sector to respond positively to market opportunities.

The setting of the target that the volume of milk produced in 2020 will be 50% greater than that produced in the 2007-2009 baseline period, reflects the confidence of the industry, as represented by the stakeholders on the Food Harvest Committee, in the potential of the sector.

My Department and its agencies are playing their part through the monitoring, and implementation where relevant, of the 55 actions identified by the Dairy Expansion Activation Group’s Roadmap as a means to achieving the 50% target; through the provision of support for a Dairy Efficiency Programme which provides for the transfer of critical knowledge within the sector by way of Discussion Groups; through the provision of dairy equipment grants for the upgrading of dairy farms; and through the activities of Teagasc who are playing a critical role in research, development and innovation in the sector and Bord Bia who are engaged in the development of a sustainability model for the Irish dairy sector, as well as the provision of support for the work of ICBF in improving breed quality in the Irish herd. I am confident that milk processors will also play their part, taking appropriate decisions on the basis of viable market assessments, to have in place the necessary processing facility to meet the increased supply. Indeed I am aware that the country’s two leading milk processors have recently announced their plans for providing the necessary increased processing capacity.

While we are all aware that the supply management arrangements that currently exist under the Milk Quota regime will no longer apply after 2015, I am confident that the processing industry will work with the milk producers to ensure that the necessary infrastructure is in place to allow a coherent and thriving dairy industry to exploit the undoubted potential in existing and new markets.

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