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

I thank the Deputy for being constructive. That is exactly what we are trying to do. For almost two years Glanbia has been encouraging its members to lock a portion of their milk into a pricing model that guarantees a margin for farmers. When it does deals with the customers to which it sells its products on the back of that locked-in price, it locks in a price also. Its big customers - the buyers of powder, cheese and butter, etc. - are also looking to agree locked-in prices in order to take the uncertainty out of this volatile market. The more we can put medium-term and long-term pricing contracts in place, not just in the dairy sector but also in other areas, the better. I met malting barley growers yesterday who were doing the exact same thing. It is great that the IFA is showing such leadership on this issue. Farmers would not lock everything in - they would lock in a portion of their product at a price they would know would be certain for a period of one, two or three years. They can take their chances on the highs and lows of the market after this.

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