Michael Creed (Cork North West, Fine Gael) | Oireachtas source

I appreciate that and we are very conscious of the increased challenges associated with Brexit. Deputy Cahill mentioned the UK having the capacity to conduct its own trade deals when the negotiations on its exit are concluded, and that is true. The truth is that the UK could decide at that stage to conclude the Mercosur trade deal and that would be damaging to us. This is why that collaborative effort is critical. I hasten to add that the UK is our closest market and the most valuable market for us to be in and we are not surrendering any shelf space there. We are preparing contingency plans and the Department has been extremely active. The Department has fed into a whole-of-Government approach to the matter.

Senator Mulherin raised the issue of the farmer in the supply chain. This issue has a lot of currency at EU level and domestically. We await Commissioner Hogan's paper in this regard. In April or May of this year, we introduced some regulations under the groceries order to bring greater certainty for suppliers to the multiples in terms of getting a written contract and abolishing the concept of so-called hello money. We need to remain vigilant about the effectiveness of those regulations. There are conflicting voices at European level. Some want an overarching legal framework in the EU. We would certainly like that because we export 90% of what we produce.

However, other countries, particularly those whose focus is primarily on a domestic market, see this as a domestic competence. A point I made at the Commission was that this has been around for so long that the real challenge for us is whether we can get it off the table once and for all and avoid the kind of ad hocapproach that is the hallmark of the income crisis at the moment where, for example, those in the dairy industry jump up and down for six months and we get a package. Is having some kind of shared regime whereby everybody contributes to a fund which automatically becomes available to the primary producer when the price of a commodity dips below the cost of production a better way to proceed? That is something that will be the hallmark of success or failure of Commissioner Hogan's endeavours in this regard. As a nation that exports 90% of its produce, there is a limited amount we can do.

I am meeting stakeholders in the grain sector on 6 October. I have met and discussed this informally with farm organisations up to now and have also discussed it with individual farmers. I was in the north west yesterday and met representatives of farm organisations there. I appreciate the grain and fodder crisis and this is an issue we can discuss in that context. It is a very challenging issue because while we are probably in the fourth year of a difficult harvest, it probably coincides with the second if not the third year of bumper global harvests which are driving global prices down. If one compounds these lower prices with bad weather, difficulty in baling straw, high moisture content and sprouting, it is a very difficult issue. I want to meet the sector and listen to its solutions rather than be prescriptive. This meeting will take place on 6 October. I appreciate that it is a very difficult space at the moment.

In response to Deputy Cahill, it is worth noting that 35% of appeals are successful. Farmers should be made more aware of this figure. Deputy Penrose will be interested to know that the Ombudsman has complimented the independent appeals office on how it operates as an effective agent for farmers. A total of 35% of appeals are successful so it is worth exploring those options. I think I have covered most of the issues raised.