Oireachtas Joint and Select Committees

Tuesday, 9 July 2013

Joint Oireachtas Committee on Agriculture, Food and the Marine

CAP Reform and Related Matters: Discussion

2:40 pm

Photo of Pat DeeringPat Deering (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I welcome the Minister. During the spring which ran into the summer very quickly we faced a number of emergencies in the South. Were there the same problems in Northern Ireland? To what extent, compared to us, did it have problems with the forage issue? If it did have problems, how did it tackle them and what measures has it put in place to ensure it will not have the same problem on a larger scale in the future? The perception in the South was that fodder would be in very short supply coming into the winter because so much of it was used and that we would need extra amounts. What measures has the Minister put in place to ensure extra supplies will be available? How did she go about educating or meeting farmers or farming groups to give them extra incentives to produce or save more fodder for the winter ahead?

On Senator Pat O'Neill's remarks about the multiples, we spent a lot of time in the past couple of months interviewing the different multiples. We were trying to extract from them information on their relationship with the primary producers which at times was difficult. As Deputy Eamon Ó Cuív noted, all bar one group came to see us. They tried to convince us that they had a very good working relationship with the primary producers and that under no circumstances would they take "hello money". I found this very dubious. Over the weekend I visited a certain place which I will not mention which produces a certain type of food product and deals with a certain supermarket. The producer told me straight up that it must provide a large amount of "hello money" to get into the market, but it could not say anything for obvious reasons because it would be de-listed. Does Northern Ireland have the same experience such that it has had to introduce the grocery code of conduct about which we spoke? While I accept that the groceries adjudicator is in its early stages, has it had any particular effect?

In respect of dairy farming mentioned by Deputy Éamon Ó Cuív, I note that in the figures with which we were provided, the price per litre of milk in 2012 was 21.5 cent. That figure sounds quite low to me. As a dairy farmer, I would find it very difficult to continue to exist for very long with that kind of return from milk production. I note that income in the dairy sector has increased by 19% in the period covered in the table the Minister has provided us with. Inputs seem to be more or less at the same levels we have here. It seems it is very difficult to continue to exist in a business with the same input levels but where the price range seems very low. We are trying to achieve Food Harvest 2020 targets whereby we hope to increase dairy levels by 50% between now and 2020, a fairly ambitious target. Of the figures in front of us, if we are to compare like with like, it will be very difficult to achieve the targets we have set. Does the Minister have any remark to make in that regard? Does Northern Ireland have similar targets?

On CAP reform, the perception is that, from a UK perspective, agriculture is the poor relation. Obviously, Northern Ireland and the Republic of Ireland have much in common from an agricultural perspective. Was it difficult for the Executive to get CAP reform on the agenda such that Northern Ireland would get as much as possible out of it? The Minister says she is reluctant to discuss the menu of options. What consultation process does she intend to put in place with the main stakeholders involved in the lead-up to the decisions that will be taken next September or October?

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