Mr. Ronnie Wilson:

This is a very difficult crisis. There was also a crisis in 2008 and 2009.

We asked our customers for price increases and got them. Back in 2008 and 2009, the big four, as they are known in the UK, were in buoyant humour. They were expanding and making good profits and there was food inflation. Today is a completely different situation with food deflation. During that intervening period, we have seen the growth of the discounters and the big four, who were buoyant in 2008 and 2009, are now in trouble. I could lift up a newspaper and read that if it is not one, it is another that is in trouble. They are not really in trouble but they are in trouble relative to where they were some years ago. They will not countenance price increases and we do not know how we are going to push prices up at the moment. We have been pushing them hard over the past month and they are refusing to budge.

We have the Polish threat. We are not quite sure how big a threat it is. Polish mushrooms formerly went to Russia. As a result of the Russian embargo, these mushrooms are now being pushed further west and Polish mushrooms are flooding the markets of France, Germany and the Benelux countries. Some are coming to the UK. The Polish industry is split into two parts consisting of eastern and western Poland. The industry in western Poland was under some pressure but is now buoyant because the distance from western Poland to the UK is a two-day drive. Only one of the four large British supermarkets purchases Polish mushrooms but we are afraid that this is the tip of the iceberg. We believe the Poles will not offer a threat in the long term because the fresh produce business involves supply lines and the shorter the supply line, the better it is for customers because people are looking for fresh mushrooms. If supply lines are long and the weather changes, there will be a build-up of mushrooms in the stores and the consumer looks at them and says, "End of shelf life; don't buy.". We hope that over time, the Polish threat can be overcome. At the moment, we face the discounters and deflation and the concept of cheap food is politically very acceptable.

That is about all I have to say. I am prepared to answer any other questions. The situation is very difficult. If we let the industry go into freefall, that will be a disaster because we are already unable to supply all our contracts. We are purchasing mushrooms in Poland and Holland to service our UK contracts. We can continue to do that for a little while but not for very long.

In 2008 and 2009, the Irish mushroom industry was transformed from a cottage industry to a highly professional and fully invested industry. Most people do not realise that setting up a mushroom farm employing 60 people costs €4 million. There are mushroom farms in Ireland that are really businesses. We do not know where we can go to make the next move. In 2008 and 2009, we invested using producer organisation, PO, money and we created a mushroom industry in Ireland that was able to compete with mushroom industries throughout Europe. The one thing we must do is stop people closing if that is at all possible because contracts will be under threat. UK retailers believe in the Irish mushroom industry. The Irish mushroom industry has served them very well. They are now being let down. These guys expect 100% service levels and if these service levels do not come through, they will look elsewhere. We must stop the industry from going into freefall.