Mr. Pat McCormack:

Senator O'Neill is correct that today is an important day for Glanbia supplier shareholders because of the awaited clarification around the intended processes and facilities post-2015 from a processor perspective. It is anticipated there will be a significant increase in 2015, probably never to be matched, of in the region of 15% or 20%. I know having attended branch AGMs last year and this year that the train of thought in this regard differs. The climatic conditions that prevailed during 2012 have brought a sense of realism to farmers. We are encouraging individual farmers to get to grips in terms of expansion costs because, contrary to what Deputy Ó Cuív said earlier, a farmer on wet soil who meets difficult times as regards price volatility and a challenging climatic year and who has increased stocking density and milk output could find himself or herself doing more and creating a bigger hole. We are advising our members of the need to consider costs and capabilities because in 2011 the cost of production varied between 14 and 25 cents a litre, depending on efficiencies and soil types of the individual farmer. It is paramount that they know where they stand before they step forward because they need to be in a position of profitability in order to expand at a sustainable rate.