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:

That is an interesting question. I do not know the answer. Talking to farmers, there seem to be two or maybe three groups. Some have a portion of fixed milk and a high proportion of variable that are doing financially better than last year and are okay. Deputy Carthy said every litre of milk locked in at those fixed prices loses money. If it is a smaller portion of your milk, however, you are probably still doing okay financially. A second cohort probably needs access to working capital to get through this rougher period. Then there are those who will need money on the profit and loss, P&L, side to get them through this. It is about how farmers, co-ops, Ornua and other customers for fixed price put something together and step up and allow the co-ops target, as the Deputy and the Cathaoirleach called out, the serious hardship cases.

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