Mr. Denis Fagan:

I will begin with Senator Pat O'Neill's question where he said they are using fresh produce as a way of getting people into the shops. We are in a situation where we have to put our cows back in calf nine months after they calve and then they produce the milk for a further nine or ten months. Once the cow goes back in calf the supermarkets are sure of their produce for the next 18 months. That leaves us in a very difficult situation because they always have that buffer.

They are continuing to use fresh milk to get people into the shops. For example, one of the major multiples has used it recently to build market share. Therefore, we know the competition that exists between the major multiples. It forces the others to reduce the price of milk to counteract it. It is getting worse all the time and we are being held to ransom because of the 18 month guarantee of supply they have. Given the winter we have come through, come next autumn when people will be thinking about putting their cows back in calf, there will be many thinking seriously of not doing it. While there is a guarantee of supply for next winter, we could have some serious problems in the business in the following winter.

Some of our producers can move to manufacturing. They many not want to but they could. Others, because of small land bases, may be forced to exit the milk business entirely. If the liquid milk end of their business becomes untenable and they have to get out, they may not have a land base to go to manufacturing and that may force them out of the business altogether. We are talking about families here. Certainly, that is not something that will help the Food Harvest 2020 strategy or help the country as a producing nation.