Oireachtas Joint and Select Committees

Tuesday, 9 October 2012

Joint Oireachtas Committee on Agriculture, Food and the Marine

Review of Food Harvest 2020 Strategy: Discussion

2:40 pm

Photo of Martin FerrisMartin Ferris (Kerry North-West Limerick, Sinn Fein) | Oireachtas source

I thank the witnesses for the presentations. We are in uncharted waters from an agricultural economic perspective, and one of the most serious negotiation processes lies ahead, which could have significant long-term effects for the industry. The industry's importance to the Irish economy has become more evident in the past number of years, particularly when we have been in recession in a big way. It is the one sector of our economy that has continued to do well.

I am concerned about the proposed end to quotas and I do not know how that will end, particularly with regard to the milk quota. I have a feeling this will lead to intensification and a reduction in producers, and many farmers will not survive this. Effectively, we will move to a more corporate-oriented farming industry, and I am very concerned about that. What are the views of the witnesses in this respect? The end of the quota system will open the process and lead to an expanded free market, and the consequences may lead to smaller producers not being able to compete as the margins will be smaller. That will lead to an expansion of the social problems in rural Ireland in particular. Will the witnesses expand on the issue?

This year has brought problems home for many of us who come from an agricultural or farming background. I know several farmers who will have no fodder for the winter because of the terrible summer we have had, and they have used much of the winter feed already. Added to this are the fuel costs rising on a weekly basis, as well as higher energy costs. The price of milk peaked at the end of June and beginning of July and has been dropping since. The margins are getting smaller for people who are trying to survive selling the product. What is the view of the witnesses on this aspect?

The delegation discussed a domestic market that is dynamic and competitive, and at the end of the contribution reference was made to a comprehensive grocery sector, inclusive of rent reviews, labour legislation and rates. Does this refer to getting rid of upward-only rent reviews?

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