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

Mr. John O'Gorman:

The farmer is out of pocket there. I am not sure which co-operative he is with but it is not benefiting out of it. The co-operative would have a back-to-back contract with a customer and that customer likely has a back-to-back customer with another customer that may be using the product and the buyer of that customer, assuming it is the end user of the product, is probably on a good bonus because he or she has managed to eliminate the volatility for the company he or she is working for. He or she is probably benefiting and his or her company is benefiting from the misfortune of that poor farmer. It is not his milk processor and I believe, although I do not know for certain, that it is not the person or entity the co-operative would have the back-to-back contract with who is benefiting. There are probably three or four people in that chain who are probably not making money out of that transaction at this point.

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