Dr. Anne Finnegan:

The Northern Ireland experience is of a sector that has been quota-free since 1995 but it has increased by a little under 40%. Total cow numbers have been static but they have increased at farm level. We have seen consolidation in the sector in Northern Ireland. Let us compare the Teagasc figures today.

The net margin in the North is no greater than it is in the Republic. Indeed, it is somewhat less.

Regarding New Zealand, we touched on that point when we discussed gearing levels in our opening statement. We often discuss how much of an advantage the low debt level is for farmers in Ireland. It is a factor of the structural make-up of farming and the manner in which farms transfer between family members. In mainland Europe and New Zealand, farms are more frequently purchased than transferred through inheritance. It gives us some advantage because we do not feel the pain as quickly or as severely in the bad years as other areas do. However, we still feel financial pressure. It should not give us any comfort that we have the capacity to take on more debt simply because farmers in Denmark or New Zealand are carrying more debt per hectare. Our production systems, entry into farming and the associated costs are different.

Mr. Burke mentioned witnessing phenomena like intergenerational loans, long-term interest-only loans, etc. One of our colleagues was in New Zealand in 2009. At that point, 25% of farmers could not make interest payments. They were left with a decision on whether to pay the interest or put bread on the table. None of us wants to see that type of scenario in Ireland.