Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

There is a very important role for milk contracts, including fixed-price milk contracts going forward. In general, these contracts provide support for farmers given the fluctuations in markets. It is also important that there are safeguards in place for farmers around that. Lessons need to be learned from the experience in that regard in recent months. It is a matter for the co-operatives and the processors, working with Ornua, to assess. A number of the co-operatives have examined the matter and delivered increased prices for the farmers in question. This is a difficult and challenging issue. Nobody predicted the unprecedented increase in costs over the past while or the increase in milk prices that has occurred at the same time. Farmers in fixed-price milk contracts are not able to avail of the higher prices but they are certainly subject to the higher costs. That is a very difficult situation to be in. It is important, therefore, that the processors and industry work together to see how they can support these farmers in the time ahead. We also need to learn the lessons in order that we future-proof this option in a way that safeguards farmers. The Minister of State, Deputy Heydon, has engaged closely with Deputy Griffin on this matter.

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