Oireachtas Joint and Select Committees

Wednesday, 13 April 2022

Joint Oireachtas Committee on Agriculture, Food and the Marine

Fixed-Price Milk Contracts: Irish Co-operative Organisation Society

Photo of Tim LombardTim Lombard (Fine Gael) | Oireachtas source

That is no problem. The Chair is more than welcome to interrupt me at times.

Perhaps the witnesses might explain the system all the way through. How this works is that Ornua would forward sell a product to a supplier. It would then purchase that from a co-operative movement or a limited company milk supplier, and it would have its fixed margin in between. The co-operative movement or the milk supplier would then forward sell it to Ornua and get it from the milk supplier, so its fixed contract is sorted out in between. In other words, the fixed costs are sorted out between both. The farmer then sells it to the co-operative movement, but does not have the fixed price of inputs tied in. The farmer's lack of fixed price is the only break in the link. Am I correct that this is where the issue is?

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