Oireachtas Joint and Select Committees

Tuesday, 16 October 2018

Joint Oireachtas Committee on Agriculture, Food and the Marine

EU Directive on Unfair Trading Practices: Discussion

3:30 pm

Mr. Pat McCormack:

I will make a few specific comments first and follow them with responses to the questions that were posed. Deputy Penrose asked about the co-operatives. If they are in the co-operative ethos and act for the benefit of their members, they should have no fear of this regulation, which will scrutinise board members and the work they do for their electorate. We could have a debate about whether much of the milk in this country is processed by a co-operative, a plc or a plc that is trying to be a co-operative.

Deputy McConalogue asked about the 70 day rule. The ICMSA believes that if an animal is on a quality assured farm and moves to another quality assured farm it should still be entitled to all the quality assurance bonuses that are available, irrespective of whether the movement was in the final 70 days or not. The four-move rule can be restrictive because people sell for various reasons. We saw in 2018 that people had to sell and they still have to sell for financial reasons.

Deputy Martin Kenny spoke of the quality payment system, QPS, and its standards, and Deputy Cahill asked if it was doing enough. It will probably not do enough for the economic sustainability of family farms but it is certainly a step in the right direction. We can take it as the first step in providing transparency and fair play in terms of the price returned to the primary producer.

I do not altogether agree with Mr. Burke about consumers picking up the tab. The expectation of consumers is beyond belief, with the primary producer being asked to do more and more, for less and less, and at a higher standard. That is unsustainable. The Department of Agriculture, Food and the Marine, the Minister and all bodies involved in the promotion of our produce, 85% or 90% of which is exported, promote the family farm structure to the exclusion of all others. This is because it is the most sustainable from a political point of view.

It is the most sustainable from an environmental point of view but that family farm structure needs to be made economically sustainable. The consumers of Europe and the rest of the world need to realise that. The standards they wish for do not come cheap.