Mr. Cormac Cunningham:

The NDC mark says "Farmed in the Republic of Ireland" but it does not say that in order to qualify to carry the mark, the milk must be farmed and processed in the Republic of Ireland. We source Irish milk directly from Irish farms all over the island. We have depots and distribution facilities all over Ireland and employ more than 250 people but because we process this Irish milk in Omagh, we cannot use the words "Farmed in the Republic of Ireland". Making any distinction between cows North and South is not only bad for us but bad for the entire dairy industry on the island.

Having been in the dairy industry for so long, we fully recognise the importance of issues such as quality, origin and traceability. Consumers want to know that the products they buy have these guarantees and retailers want to know these things as well. We can guarantee all these things to consumers. We guarantee the quality, the origin from Irish farmers and the traceability of all of our milk and milk products. This graphic from our presentation shows the craziness of the entire situation. One sees the cow on the left and a map of Ireland on the right. There is no change in what happens to the milk or where it ends up if the cow stands on the upper side. If the cow stands in the Republic, it can carry the mark as long as the milk is processed in the Republic. As I said at the outset, I am a dairy farmer. I bought a group of high EBI heifers from a farmer in the South only six or eight months ago. They crossed the Border to go to our farm. Is anyone going to tell me there is something completely different about those cows so that they cannot carry the mark "Farmed in the Republic of Ireland", which they could have if they had stayed at home? If they come to me, they cannot carry it. It seems ridiculous.

We also had a strange situation because of the confusion around this mark at the National Ploughing Championships. Cows were brought down from a farm in County Derry to demonstrate how a robot milker works. As a result of the confusion, they could not decide whether the cows were Northern or Southern cows and as a result, the milk was almost thrown out. We came down and picked up the milk. We made a donation to Our Lady's Children's Hospital, Crumlin from the money we generated from the milk rather than let the milk be wasted but members can see the confusion this mark can cause. The dairies that were there were worried that if they bought the milk, it might be seen as Northern milk. Looking at where the cow is from is not the way to run a business.

Our processing facilities have been audited by all the key retailers. They have satisfied themselves beyond any doubt about the rigour and the integrity of our processes we carry out but despite all of those measures, the NDC will not allow us to carry the mark. This will impact our business. As previously stated, if it is bad for our business, it is bad for consumers because we actively compete to get into shops and competition keeps prices competitive for the consumer. It is bad for farmers because we buy milk directly from farmers and are actively competing to get farmers to supply milk to us. They do not supply the milk to us to get a worse price. The only reason they supply us is because we pay a better price. We bring competition to the market base for farmers as well. If we, farmers and consumers are lose out, it will have an effect on employment.

The NDC is not a State agency or a semi-State body. This mark is not Government policy. The NDC is an industry-financed organisation. However, there is no denying the impact this promotional mark is having. Some retailers, some of whom we are already doing business with, want it but we are precluded from having it simply because of the location of our processing plant.

The NDC was set up in 2009 and in 2011, the NDC mark was launched on milk products. The council based the rationale for its existence on research. The survey it quotes states that consumers have become engaged in the jobs debate since the recession with 31% saying they are buying more Irish food and drink brands. When asked why, 90% say they want to support the economy and jobs.

However, if one digs into the report, it also states consumers are not interested in a North versus South conversation. The NDC believes its mark gives consumers the opportunity to show their support for local jobs on dairy farms and in the dairy sector in an active way when deciding what milk or cream to buy. The mark jeopardises that but the NDC believes it gives consumers in the Republic the reassurance of knowing that if they buy milk or cream with the council's guarantee, it is both farmed and processed locally. We can give the guarantee it is farmed locally but the provision of the mark at plants where it is processed for chains is bad for competition, farmers, consumers and employment. We support local jobs and local dairy farmers and we complete robust assurance of traceability and origin. We understand the motive of retailers for such a mark because they can show the mark to consumers and say, "It is safe. It is local and we know its origin". However, there are ways of achieving that outcome that do not result in processors being excluded. Some retailers may also have a sense that this mark demotes higher quality but it does not. The NDC does not carry out quality audits on the farms and because the word "National" is in the title, it may confuse people into thinking it is national policy when it is not.