Managing price volatility and cashflow problems was the focus of a debate in the Dáil on Wednesday evening. Addressing the debate, Minister Coveney said farmers should be mindful of recent trends in the dairy markets.

"There is no doubt that softening of global dairy markets in the latter half of 2014 have had impacts on dairy farmers in Ireland and that the possibility remains for such challenges to re-emerge," he said.

"The medium term outlook for dairy markets continues to be very bright, with growing global demand expected to support prices in the years ahead, but it is clear that there will be continuing volatility around this positive trend," he added.

According to figures from the Central Bank, the agriculture sector accounts for €600m or 23% of all new loans in the 12 months ending October 2014. Coveney said he has written to the banks asking for some flexibility for farmers with cash-flow difficulties.

Coveney added the medium term outlook for dairy markets is positive, despite price fluctuations.

"The long-term fundamentals of the global dairy market are strong and it is my strong contention that the Irish dairy sector is well placed to gain from the opportunity presented," he said. "Those involved in the dairy sector, including banks, cooperatives and farmers, need to work together to mitigate the impact of these peaks and troughs."

The minister also spoke about Ireland's reputation as a world leader when it comes to dairy products, which will help our competitive advantage.

"In 2014 a Chinese dairy audit team, essentially tasked with deciding who and in what countries dairy produce for their population can be produced, found Ireland 100% in compliance with their complex and thorough requirements," he said.

"Ireland was the only EU country to achieve such status. Such an accolade is hard earned and should elicit great pride within the sector. Ireland’s production system in the dairy sector affords us a competitive advantage both in terms of our cost base but critically it also affords us an advantage in the eyes of those aforementioned discerning global buyers," said Coveney.