Oireachtas Joint and Select Committees

Wednesday, 22 June 2022

Joint Oireachtas Committee on Agriculture, Food and the Marine

Fixed-Milk Price Contracts: Discussion (Resumed)

Mr. John Jordan:

I thank the Chairman. I absolutely recognise that there are families - men and women - farming who are in serious financial and personal stress or hardship because of the situation they find themselves in. The Ornua view is that the flexibility it has shown on the fixed product contracts will allow co-ops to create a pot of money which they can target at those specific hardship cases. Absolutely nobody wants to see someone go out of business because of decisions they made on fixed price contracts. Overall, and to reiterate what the Chairman said, we are creating value by paying product price in terms of producer price index, PPI, and indeed the Ornua value payment. The flexibility shown on the fixed product price gives pot of money or fund availability potentially to co-ops. How they then allocate it and apportion that among their farmers is a decision they have to make. As the Chairman is aware, we do not have sight of any of those farmer details or indeed figures around the farmers.