Oireachtas Joint and Select Committees

Tuesday, 21 May 2013

Joint Oireachtas Committee on Agriculture, Food and the Marine

Groceries Sector: Discussion (Resumed) with National Milk Agency

4:35 pm

Mr. Denis Murphy:

On Harvest 2020, much of the research and many of the interviews with farmers on their plans going forward were carried out two years to 12 months ago in the context of very substantial, €100 million plus investments in new liquid milk plants for production for export. The winter of 2012-13 has created a huge blockage in people's thinking and we have had the fodder shortage as well. However, the increase is still there and farmer confidence must be rebuilt to ensure that more milk is produced. Liquid milk producers represent approximately 10% of producers but they produce approximately 16% of the milk. Their confidence has been very badly rattled, but the agency cannot set the producers' price for milk. It is not part of its role. The producers' price for milk is set in the market in negotiations between producers and processors. To date, the intervention of the agency has ensured that there is an adequate supply during the winter. Going forward, however, there can be no assurance. There is a question of whether the press release was adequate but we cannot go down and tell a processor what price he should pay for milk. It is not something we can determine. The members may have to rethink.