MINISTER FOR Agriculture Brendan Smith has said that new investment, additional quota and innovation were at the heart of the Irish dairy industry and would drive it on to greater success in the future.
He told the ICMSA conference “Securing the Future of the Dairy Sector” in Cavan that the Irish dairy industry was well-equipped to take advantage of the long-term positive outlook for dairy markets and Irish producers have the potential to significantly increase milk production in the short-term.
“Long-term growth in prosperity in developing countries and in Asia, as well as increasing population trends, will create new and viable market opportunities for Irish exporters,” he said.
“The decision by the Government to provide €114 million in the Dairy Investment Fund was a huge vote of confidence in the long-term future of the sector,” said Mr Smith.
He said three of these investment grants were allocated to processors in the Border region – two to Lakelands and one to Town of Monaghan and this was further evidence that dairy production has a healthy future in this area.
Referring to the current turbulence in international dairy markets, Mr Smith said while markets were facing short-term uncertainty, analysis showed that the long-term outlook was bright.
“The main international forecasting organisations predict global growth in wealth and population in the medium term,” he said.
“This will present new opportunities for quality producers like Ireland and all areas of the dairy sector can expect to reap the rewards,” he continued. The Minister welcomed the recent reinstatement of export refunds for butter, skimmed milk powder, whole milk powder and cheeses and the opening of private storage aid for butter.
He said that while these measures had not yet provided the level of stimulus required in the market, given time and further adjustments in the level of support, he was confident these measures would, together with an increase in demand, prove instrumental in restoring balance to the market and reverse the current market difficulties.