Oireachtas Joint and Select Committees
Wednesday, 22 June 2022
Joint Oireachtas Committee on Agriculture, Food and the Marine
Fixed-Milk Price Contracts: Discussion (Resumed)
Michael Fitzmaurice (Roscommon-Galway, Independent)
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Why is there this snag in it from Ornua whereby if a co-op goes into this, it has to come into the 2023 contract? Simply put, why is there not a recognition we are in wartime? At the moment, the Government has made a decision on roads contracts, and if we consider electricity for businesses, companies have left this country and contracts have gone out the window. Why is there not a recognition that we do not put in other clauses for 2023? Let other years stand for themselves. It is my understanding it costs 39 cent or 40 cent to produce milk at the moment with current costs. It is recognised farmers are losing money. Why is this clause being put in? I would like an answer to that question.
If the price of fertiliser and diesel remained the same and everything stood as it was, we would not be here talking about this because Ornua would have no case to answer. However, we are in wartime. I am no expert in milk but I have spoken to farmers in Kerry today who have 50 cows, and those farmers are on their knees. A farm with 50 cows is a family farm. Another farmer has 230 or 240 cows and he also is on his knees. In certain areas some farmers might have taken up more than others. Is Ornua as a company not prepared to recognise it has been stated by the Government that 70% of extra realised costs on roads and public buildings are going to be paid? Contracts are being walked away from. I have seen road contracts for tarmacadam and so forth abandoned. In terms of electricity, businesses entered contracts with Spanish companies in February that are now gone, and nothing can be done about it. Yet here is the farmer, the old reliable, being left in the lurch. This is not a good sentiment. The vibe I am getting is that if these farmers are left in the lurch, they will never be got back into a fixed-price contract again. Is Ornua as a company prepared to say to the co-ops, who, as Mr. Jordan said, deal with the farmers, that we are in wartime and in totally different circumstances, and that because of the wartime situation, those contracts can be made null and void if they so wish? Is Ornua prepared to do that?