Jackie Cahill (Tipperary, Fianna Fail) | Oireachtas source

I join with the Minister in wishing Joe Healy the best of luck in his new role as IFA president. He assumes the position at an extremely difficult time for our industry.

I have listened intently to the Minister for the last 20 minutes. In his concluding remarks he tried to synopsise the industry's problems. Unfortunately, however, I do not think he fully realises the crisis in the agricultural industry. For the first time in living memory, in all sectors, every primary producer is producing below cost. At the March meeting of the Agriculture and Fisheries Council, there was no proposal to put an extra cent on any agricultural produce. I was disappointed to hear that at the April Council we had no elected representative in attendance at a time when we are in such a crisis. The Minister focused on the dairy industry and said there was a temporary blip, but the monthly Dairy Board reports show there is no end in sight for current prices. At the weekend, I spoke to a number of producers who have had a difficult spring which put milk under pressure. One of them told me he would get 19 cent per litre for his April milk. I did not improve his mood by saying that he would get that only if his co-operative or processor does not drop the price of April milk.

We are only 12 months into the post-quota system, yet unfortunately a number of dairy farmers will go bankrupt this year. We have to provide financial help for them but, as yet, there is no proposal to try to alleviate this major income crisis. The Minister referred to banks, and farmers currently have heavy borrowings. For the past four or five years we had a good news story with targets for Harvest 2020. Teagasc was pushing extra milk volumes, but we did not realise that the rest of northern Europe would increase production to the extent it has.

However, the average cost of credit in this country is the highest in the EU. Not alone will farmers have to get cheaper credit, they will have to get a holiday from repayments for 2016. Otherwise, they will go bankrupt. Co-ops will have to carry the trade debt for 2016. The Government must put proposals on the table to lift milk prices. The only way prices can be lifted in the medium term is through an increase in the price of intervention. The Minister earlier spoke about the ceilings for product intervention being lifted. While this is welcome, it is doing nothing for the price of milk. We have to get at least 26 cent to 28 cent per litre from intervention. Unfortunately, the best market for our product is intervention. The Minister will probably say that if the intervention price is increased, it will only prolong the agony. The reality on the ground, however, is that if the intervention price is not increased, some of our 17,500 milk producers, who are the best in the world, will go bankrupt. An increase in the intervention price is the only way to increase farm gate prices and it must be facilitated immediately.

The ban on trade with Russia and a drop in demand in China further complicate what is happening in the dairy sector. The reality is, however, that production is above the level of demand. Until the position in this regard returns to equilibrium, prices will not return to a reasonable level. The onus is on the Minister to ensure that our producers, who have significant potential for the rural economy as well as the economy as a whole, will be able to survive 2016. As it stands, there is no sign 2017 will be any better. With milk prices at 22 cent per litre, our milk producers cannot survive and will have to get financial assistance to get them through this price slump.

The Minister spoke about the beef producers groups. Live exports fell by 25% last year. There has been talk about new markets opening for live exports but no stock is moving at any significant level. One company has monopolised the industry and owns 50% of rendering capacity. It is able to determine what farmers will get for their cattle. The only way to tackle this is by bringing the beef kill to under 30,000 head per week. The only way to do this is through live exports. It is projected that between 80,000 to 90,000 extra cattle will have to be slaughtered this year with another 100,000 extra cattle in 2017. Live exports are the only way to keep that balanced but there are no cattle moving. I am concerned about what the processors will do to us in the second half of 2016.

The Minister referred to the beef forum which was to address the age and weight restrictions and the beef grid. Unfortunately, nothing has happened.

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