Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

On the Deputy's last question, he might well see supports trying to do that under pillar 2 of the Common Agricultural Policy, CAP, reform process. For example, producer groups would be supported so that farmers could negotiate prices collectively and more effectively. This should and could happen in the beef, sheepmeat and lamb sectors, where farmers should be negotiating in a more structured way. This is generally not as great an issue in the dairy markets, as farmers own their co-operatives and, therefore, have an input into pricing models. However, farmers are more exposed to the marketplace in terms of liquid milk.

The Commission is examining this issue, but there are no simple solutions. The idea that we could set margins or prices for any product is unrealistic, but we could certainly examine ways of examining the hand of primary food producers when they are negotiating a fair price for their produce.

Ireland's competition Bill will primarily focus on ensuring that retailers honour contracts with food producers and that people are not exposed to the significant negotiating power of multiples.

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