Martin Ferris (Kerry North-West Limerick, Sinn Fein) | Oireachtas source

I thank Mr. Murphy and Dr. Ó Céidigh for their presentations. This was quite a successful year for dairy farmers in particular, as the price was much better than it has been for some time.

What jumped out at me in the presentation was that the five largest retail groups have a market share of 93%, the five largest processors produce 91% of milk supplies and 581 producers provide 60% of milk supplies. That indicates quite clearly that liquid milk is controlled by a small number of retailers and processors. The 581 producers that are responsible for 60% of milk supplies are the largest producers and would be aware of the volatility in the market. Does the fact that this is confined to a small number of retailing groups, processors and producers give cause for concern to Mr. Murphy and Dr. Ó Céidigh? We are told that price is determined by demand. I think many of us would take exception to that, because in other sectors of farming, be it the beef sector or whatever, price is determined by the power of the multiples, the manufacturers or the processors. At the end of the day, the producer - that is, the farmer - is a hostage to fortune.

Are the witnesses concerned about the ending of the quota system and the expectation of volatility in the market as a consequence? All else being equal, one would assume it would be okay. As profit margins become more marginal, only the stronger and bigger producers will be able to survive. That is a major concern in the area I come from.