To ask the Minister of Agriculture and Rural Development what measures her Department is taking to tackle the current market difficulties being experienced on local farms, to ensure that cashflow does not become an issue for dairy farmers during the high cost winter months.

Since the 2003 EU CAP Reform, it has been clear that the dairy industry would face greater volatility in milk prices as it traded in global markets and there is no way to avoid this happening. Farmers therefore need to embrace volatility as a feature of the dairy industry and plan accordingly.

There will be times when the market delivers record prices followed by times when prices are low. In this scenario the challenge for farmers is to manage their business and cash flow over a longer period than the monthly milk cheque.

To assist farmers, my Department’s dairy advisers disseminate relevant information on managing cash flow and other issues to dairy farmers. Briefing on steps to assist with cash flow management has also been provided to the Ulster Farmers’ Union and they have used this in recent weeks. At farm level, producers should know their production costs and plan their winter feeding programme so as to maximise feed efficiency. There is also a need to focus on other costs, including whether or not it makes business sense to proceed with a planned approach, to assess borrowing requirements and prepare a realistic cash flow plan for the winter period.

My Department is fully supportive of the dairy industry and will continue to do what it can to assist producers at a difficult time. If necessary we are prepared to act as an advocate with the grain trade, banks and other creditors. But with good forward planning by producers I would hope that any issues can be managed.