Pat O'Neill (Fine Gael) | Oireachtas source

We all know that the test farm is in Kilkenny. Prices in 2009, at the time the test in terms of trying to prove milk could be produced at a certain level was applied, were really depressed. Thankfully, market prices have increased since then. While it was hoped the result would set an example and that the land used was good, I do not believe the test, in terms of what was hoped would be achieved in relation to the cost of production, was realistic. I note Mr. McCormack's statement that the organisation is urging caution on the part of its members post-2015. However, that scenario must be set against what Mr. Comer had to say in regard to the suckler cow welfare scheme, the cost of which is currently met by the Exchequer.

As I stated earlier, I believe part of Pillar 2 should be a couple of payments to support the suckler cow payments. I am not suggesting that every situation will be black and white post-2012 because it is not possible to milk cows on all lands because of some of them are not suitable or large enough to support milk production. My concern is that land close to that of an intensive or active dairy farmer, which becomes available for lease, sale or rent for 11 months will be designated as suitable only for milk production, resulting in tillage, suckler cow, beef, sheep or pig farmers not being able to rent that land. I have previously stated in public and to the Minister that I believe that some of the money obtained during the next CAP negotiations should be used to support other parts of agriculture besides dairy farming. It should be used to support the suckler cow or sheep scheme and so on. I am not suggesting that the dairy sector should not get support. Currently, our herds are 50% dairy and 50% beef. During the past six to eight years we have built up, through quality assurance, traceability and so on a reputation worldwide in relation to our beef. We are second to none in terms of quality of production and traceability in respect of products exported from Ireland. I would hate if post-2015 the 50:50 ratio would be changed to 60:40, 65:35 or 70:30, which would make it unviable for even meat factories to continue here. I know that, unless everything is set before inception, beef will be produced from the dairy herd. However, that will not do anything for us in terms of sale to the market. Previously, beef from our dairy herds was exported to Third World countries such as Lybia, Egypt and Russia. The consumers with the most money are those in Europe, including France, Italy, Spain and Germany. They want quality. Since the introduction over three years ago of traceability and so on there has been a significant increase in the price of product, which may be down to scarcity. We do not want countries such as Argentina or Brazil, which do not provide assurance in terms of quality, meeting beef needs in Europe. We must be in a position to support the needs of Europe.

It was stated earlier that support for the suckler cow scheme should be discontinued. I believe it must be supported through Pillar 2 post the next CAP negotiations.