Éamon Ó Cuív (Galway West, Fianna Fail) | Oireachtas source

I thank Ms O'Neill, who has been very helpful in providing answers. It would be interesting to have an all-Ireland approach to the CAP. With regard to what Ms O'Neill stated about making changes over time, I have stated from the very beginning that is how I want it to happen and it must happen.

I examined the definition of "active farmer". Airports and so on are out, but there are other sneaky bits that could cause problems for people in the North and us, particularly in respect of commonages. We can discuss this matter on another day.

In the past 20 years there has been a seismic change in the amount of milk coming to the South from the North. In 1996 0% of liquid milk sold in the Republic came from the North. By 2006 that figure had increased to 18%. It is now 26%. It is difficult to compare producer prices, as I do not have the annual averages. In 1995 a farmer received 32.8 cent per litre. In 2011 the amount was 35.5 cent. It only increased by 2.7 cent. The interesting element is that in 1995, 43% of what the consumer paid went to the farmer. By 2011 that figure had decreased to 32% and consumers were not the big winners - the multiples were.

The National Milk Agency's role is not to control price but to ensure liquid milk is on shelves 365 days a year. It was set up under the Milk (Regulation of Supply) Act 1994. The situation is growing more complex as the markets North and South become more integrated. I am not against this. The natural market is the island, but there cannot be an integrated all-Ireland market that ensures milk will be on the shelves 365 days a year without Northern milk being factored into the equation. The concern facing farmers in the South is that, if more of them get out of the liquid milk business, we will become more dependent on Northern milk and that if the price of milk was to change on the island of Britain, Northern milk would go to Britain and our market would not be supplied, as Northern farmers would not be contractually bound to do so. The National Milk Agency must ensure there are enough contracts to guarantee a milk supply for a certain period, but it cannot do this in respect of Northern milk. If Northern milk was used to supply 40% of our market, only the Southern producers would be tied. As free agents, Northern milk producers could shift milk to Britain. Why would they not do so, if the price there was higher? We would find ourselves with no milk on our shelves. That is the stark reality.

I do not expect an instant reply, as this is a technical subject, on which we have spent a great deal of time. When the National Milk Agency tells us that we could face a risk of not having milk two or three years down the road, this is the time to sit up. I will cite an example of something that happens in the South. Some 23% of milk in our supermarkets is provided by Dunnes Stores. I understand all of the major supermarket chains recently agreed to give an increase to farmers of 7 cent per litre to take the significant cost of producing liquid milk last winter into account, given the sizable feed costs incurred. Dunnes Stores refused to do this, which is putting pressure on supermarkets to reconsider their decision, as the market is competitive. I understand Dunnes Stores sources a fair amount of its milk in the North.

The consumer does not gain in the long term. The one element the consumer wants is guarantee of supply. Farmers in the North do not seem to gain either. Undercutting in our market means that they are being undercut. On average, their production prices are no cheaper than ours. I apologise for going around this issue, but it is an important one. Our farmers are being squeezed. I have nothing against Northern farmers, but they do not appear to be gaining either. They sell at a very low price and I am sure they are complaining to the Minister about it. Like all farmers, they want a better price. The consumer is being put at long-term risk of not having fresh milk. Is there an agency or group in the North charged with responsibility for ensuring liquid milk is on shelves in supermarkets 365 days a year, as is the case in the South? If there is, the two agencies should work together on the issue of continuity of supply. Although this relates to price, it is not an attempt to form a cartel; rather, it is an attempt to keep farming sustainable in order that milk will remain available. Is there any way of holding an all-Ireland round-table discussion on the long-term supply of liquid milk? The current arrangement is highly volatile. If we run out of milk on the shelves, there will surely be a similar problem in the North.