Mr. Pat O'Keeffe:

On the general comment about the Glanbia schemes, it was mentioned that Glanbia had tried schemes like this previously. The fixed milk price schemes were launched. They are voluntary schemes. We are now on scheme No. 13 and over 20% of the milk in the Glanbia pool is fixed by farmers voluntarily. If a scheme is not attractive when it is launched, no farmer will sign up. We have 4,500 farmers and they make independent choices.

Deputy Cahill said he was surprised at the lack of critical analysis. There was certainly critical analysis at the information meetings we mentioned. The interesting thing I discovered is that, after the critical analysis, the farmers asked many hard questions about the price of inputs. To be assured they would be getting value, they signed the form after the meeting. Ultimately, this is not a short-term programme. If the farmers perceive that they are not getting value and a return at the end of the programme, they will opt out after a period. We will be the losers. Glanbia and Kepak have set out on a journey with ambitious targets, and those targets will not be reached if the programme does not work for farmers. Farmers will sign up for calves this year in the pilot, and if the pilot works for them, they will continue in the programme. If it does not, they will move their business elsewhere.

A number of the members mentioned the private merchants. We operate in 21 counties and in all those counties there are strong, private, independent merchants and other co-operatives competing for farmers' business. It is to the betterment of farmers that they are there. They have invested in their business, the dairy herd has expanded, the dairy processors have invested in milk processing capacity and the private merchants have invested. At every Glanbia council meeting there is comment on the pricing. There is great competition in the market. This programme for 6,000 or 20,000 calves will not change the competition that exists across the 21 counties. We fully respect that.