Seán Sherlock (Cork East, Labour)

I propose to take five minutes.

I refer to a point made by Deputy Luke 'Ming' Flanagan about maximising a potential within communities to grow that sector and to develop local markets. I completely agree with the Deputy on that score. I looked at models in upstate New York of community-supported agriculture. I am very much on the same page as the Deputy on that issue. A consolidation of the dairy sector and the meat sector would mean a smaller number of larger farms feeding into a co-operative structure which will probably be restructured. One must then have due regard for the smaller community-based agriculture and the smaller farm and their place in a community and social structure. Because they are so vital we need to ensure they are not left behind. I hope that once the new Oireachtas committee structures are up and running we will be able to discuss those kind of issues. Local authorities should be encouraged to maximise a new space and look at models being rolled out in places such as Tralee and other towns. The use of land could be maximised especially around urban areas. We need to ensure we do not lose the family farm structure. The family farm should not be left behind.

I would like to speak about the consolidation of the dairy sector. Milk quotas will be abolished in 2015. We all buy into the Food Harvest 2020 proposals. However, we are not blind to the fact that it may present some constraints. Will greater consolidation of the dairy sector result in jobless growth? Will it result in the existence of just one or two milk dryers in this country? What would be its permutations be for regional growth in this country? There are challenges in this regard. If there is a 50% increase in milk production, it must be accompanied by job creation. We cannot have jobless growth.

We must ensure we continue to add value to milk as a commodity. That is where my research and innovation brief comes into play. Teagasc is doing a great deal of work on infant formula at its Moorepark facility in Fermoy. It wants to ensure the commodity has a research component and to add value in order to create jobs. There is an engagement in that space. If we do not engage politically, however, there is a danger that we could get left behind. My role is to prioritise research so that we can mine as much potential as possible from the food industry while feeding into policy at the same time.

I hope we can realise the potential of research in assisting the added value process. If that does not happen, there is a danger that we will go down the commodity line and, as a result, fail to create the type of jobs we need to create in this sector. I am very conscious of that. It is all very well to talk about the expansion of the dairy and meat sectors, but there is a danger that growth will not be accompanied by job creation. We all favour expansion. We do not know what the post-2015 scenario will be. Many younger farmers are scaling up at the moment because they can see the potential that offers. We need to have due regard for those smaller farmers who do not have the required economies of scale to act in a similar manner. We are conscious of the needs of that sector of the agricultural community.

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