Northern Ireland
Assembly

Dr William McCrea MP MLA
Chair, Committee for Agriculture and Rural Development
Parliament Buildings
Stormont
Belfast
BT4 3XX

Ms Michelle Gildernew MP MLA
Minister for Agriculture and
Rural Development
Room 438
Dundonald House
Belfast
BT4 3SB

5 November 2008

Dear Minister

The Committee for Agriculture and Rural Development received a presentation from a delegation comprising the Ulster Farmers Union Dairy Committee and Dairy UK at their meeting of 4 November 2008.

During this presentation, the delegation apprised the Committee that demand for dairy products had slumped in the second and third quarters of 2008 and that this had resulted in a significant reduction in revenue into the Northern Ireland dairy industry during 2008, which has been reflected in lower prices to dairy farmers compared with 2007.

The Committee, in considering this matter, believes that the challenge for the Northern Ireland dairy industry in dealing with market volatility is two-fold: in the short term, market support by the Commission is needed urgently, the priority being the reintroduction of Export Refunds. In the medium/long term the industry will need assistance to help it achieve a better balance within the product portfolios of dairy companies, and to help improve competitiveness against global competitors, so that the Northern Ireland dairy industry is better prepared to respond to future market volatility.

On behalf of the Committee, I would ask that you take these matters up with your Executive Colleagues, the Minister for the Environment, Food and Rural Affairs and the Commissioner for Agriculture.

Yours faithfully

Dr William McCrea MP MLA
Chairperson to the Committee for
Agriculture and Rural Development