Pat Deering (Carlow-Kilkenny, Fine Gael)
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I welcome Mr. Cotter and his colleagues and thank them for their very comprehensive overview of the situation. It is important to refer to the reason for this particular discussion today. There is a fear that younger farmers in particular may have over exposed themselves in their quest for the crock of gold at the end of the rainbow. They may not be aware of the possible consequences in the event of price volatility becoming a big issue.

I should say that I am not trying to be negative here. I produce milk myself and know what is involved. Mr. Cotter referenced New Zealand in his presentation and ten or 20 years ago, the dairy industry in that country was quite similar to ours now. Dairy farmers were looking forward to increased production and they also believed that there was a big pot of gold waiting at the end of the rainbow. In some of this committee's previous discussions, however, we have learned that the New Zealand story is not as rosy as we thought. We will find out more about that in a discussion scheduled for later on. New Zealand farmers increased production rapidly and extensively but their profit margins have not increased substantially. Many farmers in New Zealand are to the pin of their collar financially and animal welfare is becoming a major concern.

Even though we were looking forward to being the New Zealand of 2020, we are now afraid that 2020 may not be what it should be.

To pick up on Senator O'Neill's point, China and other new markets are coming on stream, which is very welcome. We need more of them. We are concentrating on China at present and it is the big place to be. Is there a danger we are putting all of our eggs in one basket? As Senator O'Neill stated, in the coming years China's domestic production will expand and we will be pushed out of the market and replaced by locals. They will learn from us and others and they will not want us any more. We will then be in a delicate situation with regard to where we will go. Other markets are being developed but China is the big area.

Bord Bia's ambassadors and initiatives are to be welcomed. When did it begin to ramp up marketing? Have staff levels been increased in recent years? Apart from ambassadorial roles, do members of staff have other specific roles in marketing a product?

We have a good product to sell and serious advantages with Origin Green and our grass-based system. Who are our main competitors when it comes to marketing what we have to sell?