Mr. John Spink:

Deputy Jackie Cahill asked about volumes, in particular of Jameson and draft beer, malting contracts and the link with feed and also Flahavans. Deputy Michael Fitzmaurice also mentioned craft beers and high value grains. The value of grain in Ireland is linked with commodity markets which are largely driven by maize in terms of grain or soy in terms of proteins and horse feed. It is worth remembering that on a worldwide basis they are both predominantly genetically-modified, GM, crops; therefore, Irish producers of conventional crops are competing in markets that are set by GM crops. As Professor Boyle said, we are trying to identify premium markets, in particular when the product is marketed as having been made only from Irish ingredients, which means that it has to be sourced in Ireland, not on world commodity markets. Therefore, the value of the grain or tillage product used to make the product is linked with its end value. Tonnages in some high value markets are currently very small, but because we have a small tillage sector, if we find suitable export markets, we could export large quantities of our produce to high value markets and make very little impact on global markets. A big increase in our oat crop exports would have very little impact on a global scale, but it would add a lot more value here. We are considering such measures.

We have not developed a variety of grain worth €1,200 per tonne, but I wish we had. A reason we have an interest in the drinks sector is that the alcohol yield of a grain is inversely related to its protein content. Our niche in Ireland is producing high-starch, low-protein grains and, therefore, higher alcohol yields than one would get from most grains. That is one reason we are particularly interested in that sector. If we could get a price of €1,200 per tonne, we would be delighted.

In relation to GM-free dairy products, we want to be competitive and need to consider whether we can produce enough feed and be competitive on price. A group within Teagasc is examining this issue. We could not produce enough protein to replace all of what we import. The analysis is ongoing. At current prices, one could formulate a ration of oilseed rape meal and beans, for example, for a slightly higher price than an all-GM ration, but if demand for dairy and meat products from non-GM-fed animals was to increase, the cost of these commodities would also increase. Currently it is a relatively small increase, but the analysis is ongoing and the price could change if there was more demand for animal produce from animals fed on non-GM crops.