Willie Penrose (Longford-Westmeath, Labour)
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I thank the witnesses for their very informative and helpful presentation. It lived up to the billing in terms of reporting. The concentration of power in the hands of a number of multiples will leave a very desolate landscape across the country. As the witnesses noted, corner shops and other very important institutions, particularly in rural areas, are being wiped out, as we are all acutely aware. That trend seems as if it could accelerate. It is worrying that the abolition of quotas will represent an opportunity and a threat; will this accelerate the trend and leave us with industrialised milk farmers, as opposed to family farm units that generate income across areas? The agency has examined the issue fairly and quite rightly presented us with documentation from the past 20 years, so we can see the inevitable trend. Will that be accelerated in a context in which we have a massive import market? We cannot stop free trade and we are all subscribed to it. We certainly avail of it at other levels.

The level of imports is staggering with this product, although we have some degree of prominence in the area. If we had not achieved world leadership in the highly tuned processing areas, such as the baby formula market and other associated and ancillary products of that nature, would we not be in a right mess? Where could we go? When the quota is abolished, where do the witnesses see us ending up? Are there opportunities to go into other niche markets across the world? We can take account of Brazil, Russia, India and China, as well as other parts of Asia. Will we get into those markets?

How many farmers will be left and how will they be concentrated? Will we end up with factory-type farms? That seems inevitable, as economies of scale will be achieved, leading to a gobbling process. That will lead to fewer farmers. Deputy Deering has indicated that the crunch is coming, with milk produced between October and February or March being so costly that he will have to revert to ordinary manufacturing, as opposed to liquid milk. Will we end up with just a few people in the sector? Will the people who served the market well over the years find no avenue in this new market? There will be opportunities, but I would like to hear the views on the threats as well.