Paul Daly (Fianna Fail) | Oireachtas source

Thank you, Chairman. I would like to revisit the pricing issue, which was mentioned by a number of members. With the greatest of respect to Mr. Nallen, to cut to the chase, it is not the model of the pricing, or how it is construed or come up with that is the issue. When one talks to the farmers, and we have had representatives before the committee, the bottom line is that the witness is buying a product that they cannot produce for price he is giving them. When labour, input costs and land are taken, the price per tonne in a good year is break-even. If farmers were not getting a basic CAP payment - if they were not being subsidised - they would not be able to produce. They would not have an income. Going forward with his model, does the witness have a contingency plan in case there is a reduction in the CAP subvention, or if the whole CAP situation changes? That is a possibility. We hope it does not arise but it is a possibility because of Brexit and the black hole created by the British leaving the EU.

Mr. Nallen is building and modifying the business, and using all the scientific methods available to him. He is doing a fine job and is probably a world leader. However, he is piggybacking on producers who can only produce what he is buying at the price he pays them because they are being subsidised by the EU. In other words, if they did not have the CAP payment, it would not be a viable proposition for them, based on the price he is giving. How is that model going to continue if there are changes?