Oireachtas Joint and Select Committees

Tuesday, 5 November 2013

Joint Oireachtas Committee on Agriculture, Food and the Marine

Liquid Milk Market: Discussion with Strathroy Dairy

4:10 pm

Mr. Cormac Cunningham:

I refer to its trademark, which states "farmed in the Republic of Ireland". I am happy enough to use that. I have no problem doing so. If were to use it, the issue would then disappear. We were asked why in our view the campaign was launched. I do not know because I do not have the NDC's ear. In my view the reason the NDC campaign was launched was to try to force us out of the market and to give others an unfair competitive advantage over the major liquid milk processor on the island.

I will provide some background. Strathroy Dairy Limited, which was established by my father who is in the Visitors Gallery, has grown to be the second largest liquid milk processor on this island We started out as dairy farmers and remain so. Obviously, it is one of the main competitors. We all know the largest competitor. In terms of how growth in Strathroy Diary Limited can be prevented or how others can compete against it, this can be done in the area of price, quality and service. We have no problem with that and will take them on on that basis every time. The NDC had to come up with something with which we could not compete.

In response to Deputy Heydon, I would say the NDC came under pressure from liquid milk producers in the South who believed they were under pressure from milk producers in the North. In this regard, milk price was mentioned. Prices North and South are virtually identical. As I said, farmers do not come to us to get less for their milk in the South. We also have southern suppliers, who get more than their neighbours. We do not buy milk cheap and sell it cheap. We buy it expensively, sell it and make a profit on it because we are very good at our jobs. Obviously, farmers were coming under pressure from their processors who were going to cut the milk price because of milk coming in from the North.

In a meeting similar to this, I met farmers and discussed their supplying us with milk. A man sitting beside me at that meeting asked me if it was true that we dump milk in the South, which took me back. My response was to ask him from where I would get milk so cheaply I could afford to dump it and if he thought the farmers who supplied me with milk were stupid. Those farmers supply Strathroy Dairy Limited with milk because it gives them competitive advantage and pays them a good price for it. There is no cheap milk to be bought. There is certainly no milk to be dumped anywhere, not if one wants to remain in business.