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 Paul KehoePaul Kehoe (Wexford, Fine Gael) | Oireachtas source

I concur with what the Chairman and other speakers have said about Ornua. It has been a great success story. However, young farmers specifically are facing some very difficult years ahead. The Chairman is correct. I have spoken to a number of young farmers in my constituency in Wexford and beyond. The banks give them an ultimatum. If they want the money to expand, they have to sign a fixed-price contract for some years' duration.

It states very clearly in Ornua's mission statement that its aim is to create value for Irish dairy farming families. Ornua has had success over the years. When we read the mission statement and see what is happening today, it is very hard for Ornua or anybody to defend that sentence. I know Ornua has been in negotiation with co-ops and only two of them have signed up.

I am a little bit disappointed with the opening responses. When the Chairman asked if the witnesses were aware of some of the cases of hardship farmers are going through at this time, while I am not sure of the exact language used, but the response was that it was not Ornua's responsibility, it is the responsibility of the co-ops. I do not agree. I had one farmer with me last Thursday night who was in tears. He said that only for his wife’s income he would not be able to keep his farm afloat. He is milking up to 300 cows.

I would have said he is one of the wealthiest farmers in the parish and that he has done very well, expanded operations, came home from college and educated himself. He told me he could name 20 or 30 other farmers in Waterford, Wexford and south Kilkenny, of whom I would be aware and who might be involved in my political party, each of whom would express similar sentiments. They have borrowed heavily and educated themselves, they are top-quality dairy farmers and milk suppliers and this is what they are going through. They are depending on their wives' incomes. The cost of fertiliser has gone up 300%, with the price of concentrates, oil and electricity almost doubling. It is very difficult for me. There is very little I can do for these people. I am not sure what the Government can do. Somebody is making hefty profits on the back of these farmers.

What were the conditions attaching to the financial package Ornua put on the table for the co-ops? Were there different conditions for each co-op or were they the same across the board? I urge Ornua to speak to some of those to whom I refer. There will be no problem whatsoever with one of the farmers. However, some are afraid to come out publicly. They are afraid of their co-ops and what they might do to them. It is a terrible thing for farmers to have to say that they are afraid of their co-ops.

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