Oireachtas Joint and Select Committees

Wednesday, 22 June 2022

Joint Oireachtas Committee on Agriculture, Food and the Marine

Fixed-Milk Price Contracts: Discussion (Resumed)

Mr. John Jordan:

I apologise if my opening statement conveyed anything other than understanding that there are hardship cases. We absolutely recognise that and have spoken to some of those farmers. We acknowledge there are farmers and farming families under serious financial and personal stress and strain as a result of these fixed-price contracts, in particular, as the Deputy alluded to, a smaller cohort that are in a high proportion of fixed contracts.

On the offer we have made to the co-ops, not all of the eight co-ops are in fixed product price schemes with us. That is an important piece in terms of our equity and how we deal with them. We made the exact same offer to all co-ops. The terms and conditions and the flexibility shown on the contract were the same for all. That was, in layman's terms, 10% of the volume locked in for 2022, roughly €1,000 per tonne increase, which would equate to 10 cent if going to 1% or 1 cent if going to all. There was the same volume linked in 2023 at that higher price.

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