Oireachtas Joint and Select Committees

Tuesday, 21 May 2013

Joint Oireachtas Committee on Agriculture, Food and the Marine

Groceries Sector: Discussion (Resumed) with Fresh Milk Producers

2:45 pm

Photo of Andrew DoyleAndrew Doyle (Wicklow, Fine Gael)
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Thank you Senator O'Neill. I am conscious of the fact that another group is coming in. This is an important matter and a couple of key fundamental points have been made, particularly in respect of the negotiating power of the milk producers. Even with a return to 43% of the retail price, they would be on only about break-even cost. It appears to me from the evidence that has come before us today there is something fundamentally wrong with the pricing structure. Somewhere along the line, either at the top-end retail price or in the cost base associated with production, even at 43% there is no profit in it. That is something to bear in mind. What is the best action to take for the survival of the sector? As Senator Mary Ann O'Brien said this is a very powerful group. It produces a fresh product on a daily basis. Fruit and vegetables are the only items that are akin to the sector and we have seen what has happened in that area. If people become accustomed to UHT milk is that going to be the acceptable norm? That is the scenario I see except for seasonal fresh milk. Perhaps Mr. Stephen Arthur would like to invite any of his colleagues to respond.