Willie Penrose (Longford-Westmeath, Labour)
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I do not believe Mr. Cotter painted an overly optimistic picture. He addressed reality because in the space of a month the statistics from the Irish Dairy Board reflected the impact of the weather and the fall off and reaction from the Fonterra Co-operative in New Zealand. I have known Mr. Cotter for more than 35 years, and I never heard him go out of his way to set out an unrealistic situation. He deals with reality. Over the past 12 months I have cautioned that Irish farmers and anybody thinking of getting into dairy farming should tread warily and be careful. There is no pot of gold in any dairy enterprise, and it would be foolhardy and irresponsible of anyone to project such as an image, and I have always held this view. People should be very careful in this context.

We had better get it into our skulls, because if we do not we are not dealing with reality, that when China and New Zealand sneeze we catch pneumonia. Let us not think we are kings of the Kop. What we do we do very well, but we make a very small contribution to the overall situation. My colleagues are right that very soon some of the farmers, particularly in the Asian and Chinese markets and ultimately in the African markets, will develop. At other levels we are promoting them to become self-sustaining and to produce themselves. The saving grace is that populations are increasing by 75 million or 80 million a year. This will be critical. Population growth is very important but so is the ability to purchase. The population needs to generate income to flesh this out. This population growth, our quality, reliability and sustainability are important, but I must concur with what Mr. Cotter stated, that it is the intangible assets which will distinguish one in the field. Nobody else will stand still. This is very competitive and we must be on our game or we will lose. Intangible assets such as reputation and technology advantages will be important. It is a function of the volatility of issues such as income and the weather, which come together to leave the market in a state of flux. The new ambassadorial style, what I call in-your-face marketing, is interesting.

Is it specific to dairy, the issue we are discussing, or is it used in the other industries, for example, beef?

We broke into the infant formula market in China because of a problem in that country. If the problem is remedied, what will happen in the long term? We have become the premier producer of infant formula, with top-class products and niche developments that have seen us shine on the world market, but it would be foolish to believe that our position is not subject to threat, notwithstanding the expertise and quality that has gained us our prominence as world leaders. Other people will hare after our position, so we cannot rest on our laurels. This is the story that the witnesses have just outlined. We must continue improving and remain production-focused in terms of the quality and technology that will achieve a market share for us. It is time to batten down the hatches and be wary and not to do anything that is too wild. When headage payments for sheep were introduced, everyone wanted to be a sheep farmer and everywhere one went the fields were snow white. Some people did not even know the difference between sheep and something else. I urge caution and "steady as she goes". We will make it, but this year will be challenging.