Mr. Cormac Cunningham:

That may answer one of Deputy Haydon's questions, but I will elaborate. As Ruairí stated, the NDC is indirectly taking money out of farmers' pockets. Farmers provide that money voluntarily in the misguided belief that it is to their advantage. The majority of farmers are manufacturing farmers. To date, the money has been spent on the NDC campaign. It gets money for generic milk advertising, but that is supplied by Europe. The majority of the €2.4 million has been collected from the 90% of farmers, including liquid milk farmers. Who will gain? I would argue that the liquid milk farmers cannot gain. There are in or around 2,000 registered liquid milk producers in the Republic. All of that milk has been paid the full liquid premium, yet only half of it is being used for the liquid market. The rest of it ends up in manufacturing products. Obviously, that side is being subsidised.

Let us not worry about that, as I have no problem with farmers getting a good price for their milk, but the downside of this campaign is the question of who wins. Liquid milk farmers cannot. Even if the market for liquid milk improved significantly, it would not create more liquid milk farmers, quota or licensed liquid producers. There is no upside for the farmer despite having spent €2.4 million. Internationally speaking, the downside is for manufacturing farmers who are giving money hand over fist. Their milk is being used to make cheese, butter, etc. Per head, Ireland's level of consumption of liquid milk is the third highest in the EU. People cannot be made to drink much more of the stuff. The market cannot really grow, although there will be some population growth. Would it not be better to use the money to try to find other markets? Research was mentioned. Some €2.4 million would fund a great deal of research into various products. This would benefit manufacturing farmers, as it would move milk from whole milk powder, skimmed powder or butter into higher value products. Derry has one of the lowest consumption levels in Europe of desserts, yoghurts and cheese. There is considerable scope for a marketing campaign.

No matter how the campaign turns out, there is no upside from the liquid milk farmer's point of view. I cannot see how such farmers will gain, even if they only fund approximately 10% of it.