Oireachtas Joint and Select Committees

Thursday, 15 January 2015

Joint Oireachtas Committee on Agriculture, Food and the Marine

Dairy Sector: Irish Dairy Board

10:10 am

Mr. Aaron Forde:

There was one question about intervention at 20 cent per litre, whether it was too low and what the marginal cost is. We have said that the marginal cost is 26 cent. A case would have been made to the Minister by us and others about attempting to get the intervention price raised somewhere into the mid-twenties. As I said in the presentation, there is a philosophical objection on the part of the Commission about setting the intervention based on costs of production but to reflect today's realities, we feel strongly that intervention needs to be somewhere in the mid-twenties.

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