Jackie Cahill (Tipperary, Fianna Fail) | Oireachtas source

I thank the witnesses for their presentations. My questions will focus on similar issues to those addressed by Senator Daly and Deputy Kenny. In view of some of the presentations given to the committee last week that portrayed a sector in dire financial straits with acreage dropping by 14% over the past couple of years, it is hard to comprehend why the lifeline for a certain number of producers who could produce grain organically and get a viable commercial price for it is not being taken. Very good commercial prices were quoted by Flahavan's for oats and yet there is a deficit in the production of oats. What roadblock is stopping farmers? They are usually very good at making good economic decisions. What is stopping farmers changing to organic farming from conventional tillage farming which everyone agrees is not paying? The witness said there is a severe shortfall or deficit in every sector, so what is the roadblock or what needs to be done in order that a sector of tillage farmers would be able to make a viable income?

It was said that 60% of raw materials used by the drinks industry is purchased in Ireland. That seems a very low figure for an industry that portrays itself as wholly Irish. Kerrygold butter is 100% produced in this country and marketed as such. However, it is disingenuous if whiskeys and craft beers are being marketed as Irish but only 60% of their ingredients come from Ireland. That figure seems extremely low for a product to be labelled as completely Irish.

A point was made by Senator Daly and Deputy Kenny regarding the end product and how one will pay over €5 for a pint of Guinness but the person producing the grain will only get 4 cent or 5 cent of that. If there were a graph before the committee showing the relative division of the final consumer price of a pint, as one often sees, one would hardly be able to see the section showing the portion for the tillage farmer because it would be so small. The ABFI gave figures showing the drinks industry has expanded rapidly in recent years and said that distilleries and breweries have been springing up all over the country, and that is welcome. However, if it is serious about developing the industry in the future, the person producing the raw material has to see a future in it for him or her.

If we are to create a niche market for Irish whiskey and niche Irish craft beers, we need to source the raw material as far as practically possible in Ireland.

We must take action to rectify what is happening at present, as evidenced from the graph. The man producing the raw material is not being paid a viable return for his produce. I would like the industry to focus on the percentage of the raw material that is produced in Ireland and whether the current level of 60% will be increased to a figure in the high nineties, let us say above 95%.