Mr. John Comer:

The processor in question, which Deputy Deering did not name, was represented at the dairy forum.

To respond to the Deputy's first question, there is great value in having all the stakeholders around the table engaging in a fair and honest discussion. One of the kites being flown is a tool known as margin protection insurance which is designed to deal with volatility. When one analyses this scheme, however, one finds that while it would probably deliver, it would do so at enormous cost because it involves the introduction of another multinational company to provide insurance policies that would protect farmers' margins and thereby remove another swathe of money from the equation. Ultimately, someone must pay the cost. Would it be paid by the consumer? These types of topics are being discussed at the dairy forum.

The ICMSA had long, hard and tough negotiations with Glanbia, the company that pays the lowest milk price, at 24 cents per litre. There is outright anger among ICMSA members who supply Glanbia at the company's decision to reduce the price. The Ornua purchasing price index, which is based on a basket of real products traded in a real marketplace, suggests that the actual price is 20.06 cents. The processor paying the lowest price is the one that put itself on a pedestal as if was a paragon of perfection in terms of processing product. It was to have innovative products which would deliver a greater return than the returns available from other processors, yet it pays the lowest price. This is very difficult to explain but it shows what can happen, even with a player as large as Glanbia which should have the scale and expertise to lead the market up, rather than drag it down.