Mr. Stephen Arthur:

To clarify the Chairman's point on what is happening in New Zealand, milk was worth more to export than to keep locally. The government had to introduce a subsidy to supply milk to local shelves.

On Senator O'Neill's question on what is happening in England, there were family farms and then deregulation took place which led to factory farms. The structure in Ireland involves family farms. We do not have big tracts of land. Companies in England buy tracts of land, put 2,000 cows on them and work for one cent a litre. They do not even see the cows and have three or four people working for them. Here an average liquid milk farm comprises a father, wife and children who run the firm. It is a family enterprise.

A speaker at a conference some years ago said the best unit one can have in farming is the family farm. Our land structure is designed for family farms.

On the question of what may happen in 2015, anyone in a position to change will change because the milk will be worth more in powder form and if exported to China. Scale in terms of dairy farm health has not worked, either nationwide or worldwide. What we have works. A statutory code of conduct would be of long-term benefit to the consumer. The fodder crisis is having a significant impact this year, but milk farmers have faced a crisis for the past ten years and it looks like it will continue. It is very important that we accept and protect what we have.