Vol. 53, No 4 November 2000 International Journal of Dairy Technology

Minister Walsh’s address to the Conference: future challenges facing the dairy sector

More than ever the dairy sector must enhance competition to meet the challenges that lie ahead. Developments which will occur in the next few years will have a profound impact on the long-term future of the sector. These include the changes as a result of Agenda 2000, the enlargement of the EU and the increased trade liberalization likely to result from the next round of the WTO.

The price cuts agreed in Agenda 2000 will not bridge the gap between world and EU prices. However, the 15% reduction which will begin to be implemented from 2005 should lead to more competitive exports from the Community. In addition, changes to the quota regime that I have introduced recently will help to make the dairy sector in Ireland more efficient. This will be achieved through directing quota towards active producers who are committed to the long-term future of the industry here.

While the policy context is set until well into this decade, the quota regime is due for review in 2003. By that time negotiations on enlargement will have progressed significant- ly. This process has already begun with con- sideration of the position papers from the initial six candidates. The expanded internal market will offer increased export opportuni- ties for Irish product. Enlargement will, of course, mean increased competition on the EU market. As well as this, the next WTO agreement should be taking shape by 2003. There is very little doubt that this will contin- ue the moves to further liberalize internation- al trade. These two developments will signif- icantly affect the EU dairy market over the coming years. The dairy sector will therefore

have to consider strategies to improve com- petitiveness by increased on-farm efficiency and further rationalization of the downstream sector.

1ncreast:d emphasis on innovation in prod- uct development and improved efficiency at farm level are central to competitiveness in the coming years. Irish product must be of the highesi quality to compete in the EU mar- ket and internationally. Controlling costs through improved production methods at farm level will be critical in the future. I believe that our industry has the capacity to respond to these competitive challenges and the work of Teagasc and the support it pro- vides to all those involved in the dairy sector will be a major input in that response. While many may view approaching events as threats, I view these developments as great opportunii ies. The correct approach, involv- ing a product mix of innovative, high quality, competitively produced goods can sustain dairying as a profitable sector in the long term.

Dairy technology is central to the drive towards improved competitiveness. Given the importance of the dairy sector in Ireland we must make full use of the technological advances which are now available to produc- ers and processors alike. Today’s proceedings will, I have no doubt, heighten awareness of the contribution that technological improve- ments can make and that is to be welcomed.

Mr Joe Walsh TD Minister for Agriculture, Food and Rural

Development

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