Dáil Éireann - Volume 475 - 04 March, 1997
Written Answers. - Milk Prices.
Mr. B. Smith Mr. B. Smith
233. Mr. B. Smith asked the Minister for Agriculture, Food and Forestry if his attention has been drawn to the concerns of dairy farmers regarding the recent fall in milk prices; the proposals, if any, he has to offset these losses; and if he will make a statement on the matter. [5706/97]
Mr. J. Walsh Mr. J. Walsh
252. Mr. J. Walsh asked the Minister for Agriculture, Food and Forestry his views on the recent cut of up to 10 pence per gallon on the price of milk; the measures, if any, he proposes to take to ameliorate this cut in farmers' incomes;  and if he will make a statement on the matter. [6058/97]
Minister for Agriculture, Food and Forestry (Mr. Yates) Ivan Yates
Minister for Agriculture, Food and Forestry (Mr. Yates): I propose to take Questions No. 233 and 252 together.
The Deputies will be aware that the price paid to milk producers for their milk is essentially a commercial matter between themselves and their milk purchasers. While the price for butter and SMP is supported under the EU common organisation of the market for milk and milk products, the actual price for milk paid to producers is a function of a number of factors, including the products into which the milk is processed and the markets on which those products are sold.
It is the case that international dairy markets have weakened during 1996 and this is now reflected in the price being returned to producers. It is also the case that recent revaluations of the Irish green rate have given rise to a reduced level of support in Irish pounds. As regards the latter, I have already announced that a compensation scheme will be introduced which will offset some of the effects on producers incomes of the recent revaluations.
Dáil Éireann 475 Written Answers. Milk Prices.