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

I welcome Mr. Denis Murphy and An Dr. Muiris Ó Céidigh anseo tráthnóna. I always find their reports very informative, clear and useful. Dr. Ó Céidigh said in his presentation that the manufacturing price was now within 0.8 cent per litre of the liquid milk price. The question I have on price - allowing for a likely volatility in the market which has been indicated by the ending of the quotas and so on - is whether the liquid milk price is likely to follow the manufacturing price, or is the similarity just coincidental? Will it be more influenced by the availability of liquid milk from Northern Ireland?

In other words, is this link to the manufacturing price just a temporary phase, or is the real determinant the availability and the price at which those in Northern Ireland are willing to sell milk? Depending on the answer to that question, are we likely to get significant volatility in the price paid to liquid milk producers? If there is significant volatility in the market, how will the National Milk Agency ensure there is a liquid milk supply in the winter, which I understand is the role of the agency? Will it be possible to ensure there is a sufficient return for those in the liquid milk market who continue to produce liquid milk in winter so that the product is available?

What fascinates me is the fact that, although there is little or no difference between our climate and that of Northern Ireland, it has a much more even supply of milk across the whole sector. There is much less seasonal difference in the level of production. Is the open border likely to continue in the market into the future? What is the reason for the greater level of seasonal milk production in the South? What is the more profitable system for manufactured milk as well as liquid milk? Will that affect the National Milk Agency? Would the need for the National Milk Agency continue if supply levels were constant throughout the year?

The labelling of milk was alluded to, but not in great detail. I understand the National Dairy Council campaign was relatively successful. The own-label goods allow the multiples or supermarket groups to switch supplier or processor very quickly and to use milk from both North and South without anybody knowing where the raw material is coming from. That allows them more choice in terms of buying milk. Having a NDC label, by definition, limits the market to the South. My understanding is that the milk is the exact same quality and that there is no difference between milk from the North and milk from the South. I understand that buying milk with a NDC label and paying a premium price for it does not give one a premium product.

My final point concerns the price paid to farmers. We were given statistics previously, and when I get an opportunity to examine the NDC annual report in detail, I will have some indication of the percentage of the price of a litre of milk that goes to the primary producer. On a previous occasion, the NDC indicated that the price of a litre of milk as it was in 1995 had decreased by 11% in the intervening years. What is the view of the National Milk Agency on the concept of having an official observer at EU level, as they have in France, to inform the public of the cost breakdown of a litre of milk - in other words, the percentage that the farmer, the processor and the retailer get for a litre of milk? This would establish over time whether the percentage going to the farmer is rising or falling and whether that change is justified in terms of increased costs in the various sectors. It seem to me that the stability of farming depends on that information. I understand that 55% of milk production goes to manufacturing and the remaining 45% is sold as liquid milk; is that correct?