Mr. Cormac Cunningham:

That is a local issue but if we broaden it, we must consider the impact this mark could have and the image it portrays of Ireland internationally. With 90% of our farmers being manufacturing farmers, the majority of milk generated on the island is exported into important markets all around the world. We would have to come against this sort of competition in other markets. This packaging mark is anti-competitive and contravenes EU legislation. It uses country of origin labelling in an anti-competitive way and it has implications for vital trade between Ireland and the UK and the wider EU. It is inconsistent with national policy on food and drink, the wishes of consumers and the island of Ireland approach to animal health. The mark is anti-competitive because it is in breach of EU legislation, the Single Market and Article 101 of the treaty on the functioning of the EU. We received independent legal opinion, which states, "The NDC mark has the effect of restricting parallel import and impeding free movement of goods throughout the EU, which will adversely affect the promotion of a single European market ... There is a clear, prima facie breach of Article 101".

With regard to country of origin labelling, a report by Deloitte and the Dairy Council of Northern Ireland stated, "COOL is intended to clarify the origin of food products for the consumer helping them to make an informed choice on whether to buy a local product over an alternative sourced from another part of the EU or elsewhere". Other factors such as price and quality will form part of the consumer's decision but this labelling is not supposed to be used to interfere with the free movement of goods between member states. The Deloitte report states in this regard: "Denying Northern Ireland dairy products the opportunity to compete for a place on ROI supermarket shelves through the abuse of COOL means that consumers in the Republic are being denied freedom of choice. This has knock-on effects potentially for vital Irish trade". Other markets in the EU are vital for us given so much of the milk produced on the island is exported. We do not want to do anything that could affect that negatively.

I refer to a number of quotes in this regard. Arlene Forster, the Stormont trade Minister, is exercised about this but the comments Ian Potter, an agricultural commodities trader, particularly milk quota, wrote on his blog about his reaction to hearing about the NDC are more telling. He said:

Meanwhile, we sit back and allow Irish cheese to flood into our market at retail, catering and government procurement levels much of it coming via the IDB/Adams Foods ... if Southern Ireland can exclude our dairy products we should follow their lead instead of continually rolling over and hiding behind competition issues.

I do not like to see this stuff written about Ireland. Pat O'Keeffe, news editor of the Irish Farmers' Journal wrote: "In the case of liquid or fresh milk, my view is that the real losers in this battle for market share are dairy farmers, north and south". James Campbell, also of the Irish Farmers' Journal stated:

The tonnages of cheese and butter sold into the UK from the RoI far outweigh the value of the entire southern Irish Liquid Milk supply ... The irony is that the money to support the NDC campaign and liquid milk producers is coming from those most in danger if there is a backlash against Irish dairy products in the UK.

The quotes go on from independent journalists and commentators on the dairy industry. They recognise the impact this could have if it was replicated somewhere else.

The red tractor mark is often brought up as the UK has a similar scheme but if one looks at it closely, one will realise that this is a food assurance scheme that covers production standards developed by experts on safety, hygiene, animal welfare, the environment among others. The logo on a pack means the food or drink has met these responsible production standards and is fully traceable back to the farm but it is not used to deny products from other member states access to shelf space.

One could take any number of dairy products but I will use Kerrygold butter as an example. If the Irish Dairy Board was to depend on the NDC mark for trading, this butter could not carry it as the board sources its milk is from the entire island. It has more than 15% of the German market where it has been trading for 40 years. It sells the butter at a premium and it is doing a superb job for Irish exports and the brand of Food Ireland. The board is blazing a trail and the butter is seen as high quality.

I refer to national policy that was agreed at meetings such as this. It refers to Ireland, the food island, and an all-Ireland approach with no divide between North and South. Bord Bia's Food Harvest 2020 strategy, which was produced in conjunction with the Department of Agriculture, Food and the Marine, outlines that our national strategy for agriculture, food and fisheries is about Ireland, the food island, and there is no differentiation between North and South. Bord Bia is the State body responsible for the commercial success of world class Irish food and drink. It takes an all-Ireland approach and has national quality assurance marks. The board addressed all the issues I outlined earlier relating to quality, origin, traceability and Strathroy Dairy would qualify for the Bord Bia quality assurance mark but the only problem is its remit does not cover milk. The next slide demonstrates how the board has addressed the nuances of what lies before us. There are three different marks. The first states "Origin-Ireland", the next "Origin Northern Ireland" and the final one "Produced & Processed Ireland & Northern Ireland". One could argue NDC is bringing nothing new to the party. There are enough good strong labels in the market that cover the issues that need to be covered to give consumers the reassurance they need.

This is not consistent with what the consumer wants. Bord Bia's approach is grounded in its own consumer research.

Bord Bia's report states:

The importance of heritage and tradition – brands that we are familiar with over years – appears to have become more prominent in consumers’ definition of an Irish brand. Loyalty towards Irish brands today is down to the fact that consumers have become more aware that buying Irish is a step towards economic recovery. Consumers are not interested in a north v south conversation.

As a dairy farmer, animal health is very important to me. We are aware of issues such as BVD, IBR and even foot and mouth disease in the not too distant past. Animal Health Ireland is actively involved with Animal Health and Welfare NI to have an all-island strategy. A BVD eradication programme is under way in the Republic, and while it is a year behind, one is also under way in Northern Ireland. The same high standards are being applied across the island because the traceability and quality of food on the island is what is important.

I come to possible solutions, the first of which is the legal route. The next slide in my presentation outlines Mr. Justin McCarthy's view on the legal route. I agree with him that it represents time, money and effort wasted that would be better spent exploring other avenues. Do we need a new quality mark? There are a plethora of quality marks in Ireland which guarantee quality and provenance. Some are more stringent than others in terms of auditing for quality. There is confusion among consumers about what those marks are telling them and what they represent. It is possible to buy Gem sugar carrying the "Love Irish Food" mark. To the best of my knowledge we do not produce any sugar beet to turn into sugar. Barry's tea carries the "Love Irish Food" mark. Whereas I love Barry's tea, I do not know where the tea plantations are on the island. There is confusion among retailers about what the marks mean. The Bord Bia approach we mentioned earlier provides a potential approach to solving the problem.

In an ideal world I would recommend ending the NDC packaging mark for the reasons outlined on the slide. We favour an all-island approach. We do not need all these, sometimes competing, food labels as its confusing for consumers.