Minister Killeen confirmed that his colleague Minister Brendan Smith was scheduled to meet EU Commissioner Mariann Fischer Boel in Brussels shortly to discuss Irish concerns for the current state of the dairy market.

The Clare T.D. commented, “The sector is currently going through a very difficult period. Allied to the correction to markets that is now taking place as a result of historically high prices in 2007 and early in 2008, there is the further complication of the credit crunch. These two, in combination, have placed an enormous burden on the dairy sector and have caused a slump in demand as a consequence.”

Minister Killeen noted that the sector had reached a critical period as supplies were scheduled to come on stream in abundance in the next few months.

“I strongly believe that we need a multiple track approach - a short sharp utilisation of the full range of market management measures - to get the market back to equilibrium. This can be achieved quickly with competitive refunds that lead to the permanent disposal of product. In addition, the continuation of intervention for butter and SMP after the mandatory limits of 30,000 tonnes of butter and 109,000 tonnes of SMP are reached is extremely important but will only be effective if the tendering arrangements remain relatively attractive,” added the Minister.

Commenting on Minister Smith’s upcoming meeting with EU Commissioner Fischer Boel, Minister Killeen said that the Commissioner would be urged to avail of the option open to her to introduce support for the use of SMP in animal feed and aid for the production of casein.

“These schemes would, if appropriately structured and quickly activated, help restore order to the sector that may not recover quickly enough in their absence,” concluded Minister Killeen.

-ENDS-

Mark Dunphy
Dunphy Public Relations
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