Mr. Niall Matthews:

Many co-operatives have agri-stores in their portfolios. It is estimated that 50% to 60% of the milk produced in Ireland comes from derogation farms. KPMG conducted an analysis showing that if the derogation were lost and the stocking rate were reduced to 170 kg N/ha, it would mean an 18% reduction in stock numbers. Obviously, that will have a big knock-on effect on the demand for imports into agriculture. Generally, the co-operatives are large turnover businesses but they work on very small margins – maybe 1% to 2% – in terms of net profit. They are a little vulnerable. If the derogation is lost and the stocking rate is reduced, the turnover will be greatly reduced and profits may be wiped out. It is essential to keep the businesses viable and keep the retail stores economical and open.