Study will be blueprint for dairy industry
Agriculture and Food Minister Joe Walsh commissioned the study in association with the industry and Enterprise Ireland. It followed a growing acceptance that the sector needs to
rationalise to meet future challenges at home and abroad.
The terms of reference enabled the consultants to look at the sector's structure, efficiency and long-term competitiveness. They have also looked at the current product mix and the potential product options necessary to exploit new market opportunities. Structures elsewhere, particularly in Denmark, the Netherlands and New Zealand, and how competition from abroad might impact on the industry in Ireland, have also been examined. Mr Walsh, outlining policy priorities for 2003, said the study should represent a blueprint for the
future development of the sector.
Following a major overhaul of the milk quota system in 2000, he said he is also now actively developing policy for greater redistribution of quotas under the restructuring scheme. "As of now, there is insufficient milk quota becoming available to satisfy the need of producers who need to expand to stay in business. There is also a serious disparity between co-op areas in relation to the freeing up of quotas. Some adjustment to the system will be needed to accommodate these demands," he said.
The European Commission is also expected to publish detailed proposals for the mid-term review of the Common Agricultural Policy early in the new year. Mr Walsh said these will most likely include the proposal to
decouple EU direct payments from production. "Discussions will continue for some months. Protecting our interests will present a major negotiating challenge. Our final negotiating position on decoupling will be taken on the basis of a full impact analysis of the implications of the proposals," he said.
Mr Walsh said the WTO negotiations on a new agreement have been underway since the round was launched at Doha in December 2001 and will enter an important phase this year. The WTO Committee on Agriculture meeting in special session is due to establish rules for making commitments under the new Doha round by the end of March. He said the next WTO Ministerial Conference will take place in September and the negotiation of the new agreement is due to conclude before 2005. The outcome on agriculture will be of major importance.
Mr Walsh said his aim is to ensure the continuation of the EU's system of direct payments under the new round agreement and to protect the gains from Agenda 2000, which represented a very good outcome for Ireland.
Regarding EU enlargement, he said the priority in 2003 will be continued bilateral contacts with applicant countries especially in the context of the preparations for Ireland's presidency of the EU in 2004. Mr Walsh confirmed that priority will be accorded to implementing the recommendations of the Food Labelling Group.
The report contains far-reaching recommendations on the information consumers should have about the food they buy, on the responsibilities of food suppliers and the Government's role in regard to the regulatory and educational framework.
He said some of the recommendations fall within the control of Government agencies and can be implemented quickly.
Others will require national legislative changes while some will have to be pursued at EU level.
In relation to the beef sector, he said his main objective will be to encourage increased penetration of the higher value EU markets.
Non-EU markets will continue to be important as high volume outlets. A major priority will be continued efforts to reopen markets from which Ireland is currently excluded, especially the Gulf States, South Africa, Philippines and Indonesia.
Minister Walsh said a further meeting involving the main players in the beef industry will be held in the New Year. He also intends to complete an all island animal health strategy in co-operation with the Northern Ireland authorities.
Disease eradication measures will continue to be applied to further reduce levels of TB, brucellosis, BSE, scrapie, aujeszkys disease and other diseases of significant importance.
The current Diseases of Animals legislation will be updated/consolidated during 2003.
New legislation governing the practice of veterinary medicine will also be finalised in the new year.
Mr Walsh said the REPS review process will be accorded priority particularly as the scheme is significant in the context of the implementation of the Nitrates Directive.
He said he will also examine the advantages that might accrue from an amalgamation of An Bord Bia and An Bord Glas.
