Oireachtas Joint and Select Committees
Monday, 8 July 2013
Joint Oireachtas Committee on Environment, Culture and the Gaeltacht
Heads of Climate Action and Low Carbon Development Bill 2013: Discussion (Resumed)
1:35 pm
Mr. James Nix:
There are implications on foot of economies of scale. The point I am making is that we are at that crossroads. I will give the example of two rival end sources of product. In one scenario, the farmer produces milk and that milk is dried in a very energy intensive process into powder and it is then flown to somewhere in Asia. It is then effectively reliquidised and put into baby formula or whatever and a very large commercial entity sells that product on the market of an Asian country. The Irish farmer would get 30 cent to 40 cent a litre for that and not a cent more because that is a global price and he is competing with a New Zealand farmer, an Australian farmer and an Argentinian farmer for it. If we contrast the return on that product with the return on organic yoghurt made in west Cork, a small tub of which sells for 99 cent, it is pretty clear that scenario two provides far more scope to put money back into the pockets of family farmers than scenario one.
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