Mr. Michael Barry:

With regard to training, the industry is about to finance a masters in dairy technology and innovation to upskill people in order that they can enter the dairy processing sector, albeit at a slightly different level. A need and opportunity for highly skilled people was identified which can be solved by a piece of retraining, reskilling and refocusing. The initiative will serve the sector well into the future.

Deputy Lawlor asked whether we had examined the reaction and ambition of other European countries and their potential post-quota. Yes, is the answer. Ireland is unique in having its business plan, Food Harvest 2020, which brought the Government and industry together. There is not an ambitious growth opportunity in many of the dairy exporting countries in Europe because many of them have natural, environmental and societal constraints. Water is a big issue but water quality is an even bigger issue in many of these intensive countries. Ireland has a tremendous opportunity to benefit from their constraints. It is my association's view that the expansion of these countries will be somewhat muted.

In terms of the good question of whether we see any other threats post-2020 to achieving the goals, we do not know about the unknowns. Nobody saw the dioxin or horsemeat scandals coming and more will arise, but it is impossible to predict them. We can manage things like trade policy. We work in an increasingly global market so we must ensure the opportunities for accessing markets continue, are enhanced and the competitive base is unhindered. Trade policy is a known factor that is worth a lot of focus. A threat to trade policy would hurt the industry both defensively and offensively.

Deputy Collins asked whether we would lose smaller farms. Since quota was introduced, there has been a gradual and even decline in the number of family farms in Ireland, and the same has happened across Europe. Our feeling on it is that the decline has been driven more by age factors, either a lack of a successor or someone is unwilling to operate a small to medium-sized enterprise. Earlier, the committee discussed finance but a discussion on finance is also important at farm level. Somebody working a small to medium-sized enterprise must learn how much it will cost to take on such a challenge. The problem is that we are increasingly dealing with a very volatile price environment. There have been price highs and lows which makes it challenging for somebody to secure high levels of finance for his or her business. That is a long way of saying that I believe that the current decline in farm numbers will continue due to age and demographics.

The Deputy also asked about the sector's potential for growth. Farmer meetings are difficult now. Farmer confidence is at an all-time low and has been dented. I believe that the 50% target is no longer just related to Food Harvest 2020 because it has been supported by very detailed surveys carried out by co-ops throughout the country. I would go back to the point I made earlier. Let us think less about Food Harvest 2020 and more about the 50% target which is still a great victory for us nationally if we hit that 50% target by 2022.