Oireachtas Joint and Select Committees

Wednesday, 22 June 2022

Joint Oireachtas Committee on Agriculture, Food and the Marine

Fixed-Milk Price Contracts: Discussion (Resumed)

Photo of Michael FitzmauriceMichael Fitzmaurice (Roscommon-Galway, Independent) | Oireachtas source

There is a cushion, and Mr. Kelly is correct that if the fuel price goes up for the supplier, there is a cushion for Ornua. However, the fuel price has gone up, the fertiliser price has gone up, and the electricity cost has gone up for the farmer, and Ornua has not moved to help them.

I know the witnesses are going to say “It is not us and we have it with the co-ops”, but between the co-ops and Ornua, the farmer is piggy in the middle and is getting screwed. Is there not an onus on Ornua to sit down with the co-ops to make sure those farmers are brought up to a realistic value? I am not saying those farmers should get today's prices but the one thing they need is to be viable. Ornua is offering 42 cent under this deal that was mentioned but it is recognised there is a problem producing milk below that, or at least a few cent below that.

Why is there not a banging of heads together rather than leaving the farmer in the lurch? It is not good for the image of the fixed-price contract and not good for the image of companies like Ornua. There will be housewives watching today and they know what they are paying for stuff. If they feel that Johnny the farmer down the road is getting screwed, it is not good for them. Will Ornua give a commitment to sit down with the co-ops to drum out a proper, realistic price? I am going on the figures Mr. Jordan has given for profit, and fair play to Ornua for the profit it makes. If it went to 40 cent on the volumes Mr. Jordan is talking about, it would not put a big dent in that. If I was a member getting a payback from Ornua, I would like to make sure my neighbour was viable and was not put out of business, even if I had to take a few quid less.

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