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Joint Oireachtas Committee on Agriculture, Food and the Marine: Fixed-Milk Price Contracts: Discussion (Resumed) (22 Jun 2022)

Michael Fitzmaurice: For what percentage of volume?

Joint Oireachtas Committee on Agriculture, Food and the Marine: Fixed-Milk Price Contracts: Discussion (Resumed) (22 Jun 2022)

Michael Fitzmaurice: Is there a proviso in that contract relating to inflation - index-linking - or to problems arising from transport and so on?

Joint Oireachtas Committee on Agriculture, Food and the Marine: Fixed-Milk Price Contracts: Discussion (Resumed) (22 Jun 2022)

Michael Fitzmaurice: There are things in it that will safeguard the future for Ornua.

Joint Oireachtas Committee on Agriculture, Food and the Marine: Fixed-Milk Price Contracts: Discussion (Resumed) (22 Jun 2022)

Michael Fitzmaurice: I understand the fixed product sale, but what I am asking is-----

Joint Oireachtas Committee on Agriculture, Food and the Marine: Fixed-Milk Price Contracts: Discussion (Resumed) (22 Jun 2022)

Michael Fitzmaurice: If the cost of transport or anything else goes up, is that as far as ten years?

Joint Oireachtas Committee on Agriculture, Food and the Marine: Fixed-Milk Price Contracts: Discussion (Resumed) (22 Jun 2022)

Michael Fitzmaurice: How long is it?

Joint Oireachtas Committee on Agriculture, Food and the Marine: Fixed-Milk Price Contracts: Discussion (Resumed) (22 Jun 2022)

Michael Fitzmaurice: What are the majority of them?

Joint Oireachtas Committee on Agriculture, Food and the Marine: Fixed-Milk Price Contracts: Discussion (Resumed) (22 Jun 2022)

Michael Fitzmaurice: Yes, on what the farmers supply.

Joint Oireachtas Committee on Agriculture, Food and the Marine: Fixed-Milk Price Contracts: Discussion (Resumed) (22 Jun 2022)

Michael Fitzmaurice: I presume in most of Ornua's contracts, as there always has been on contracts down through the years, that if something happens relating to inflation or transport costs, there is room that gives a chance to renegotiate the price. Is that correct?

Joint Oireachtas Committee on Agriculture, Food and the Marine: Fixed-Milk Price Contracts: Discussion (Resumed) (22 Jun 2022)

Michael Fitzmaurice: I presume there is flexibility in some of Ornua's three-year contracts.

Joint Oireachtas Committee on Agriculture, Food and the Marine: Fixed-Milk Price Contracts: Discussion (Resumed) (22 Jun 2022)

Michael Fitzmaurice: There is a cushion, and Mr. Kelly is correct that if the fuel price goes up for the supplier, there is a cushion for Ornua. However, the fuel price has gone up, the fertiliser price has gone up, and the electricity cost has gone up for the farmer, and Ornua has not moved to help them. I know the witnesses are going to say “It is not us and we have it with the co-ops”, but...

Joint Oireachtas Committee on Agriculture, Food and the Marine: Fixed-Milk Price Contracts: Discussion (Resumed) (22 Jun 2022)

Michael Fitzmaurice: Would Ornua be prepared to take the 2023 proviso out of this? If, as Mr. Jordan said, there is a 10 cent difference, there is room for the people on the contracts to get, say, 7 cent, 8 cent or 10 cent, and to take this other clause out of it. Is Ornua prepared to make a goodwill gesture like that for those farmers, given the situation they are in at the moment, when it might resolve an issue?

Joint Oireachtas Committee on Agriculture, Food and the Marine: Fixed-Milk Price Contracts: Discussion (Resumed) (22 Jun 2022)

Michael Fitzmaurice: Ornua can turn around next year and bring out its new thing for the next three years. What is the point of bringing out a new scheme? Let us suppose they say they are not going down that road. What is the point of offering a new scheme next year if the chalice is poisoned and we end up in a situation where every farmer says “I will never go near that again.” It is no good to...

Joint Oireachtas Committee on Agriculture, Food and the Marine: Fixed-Milk Price Contracts: Discussion (Resumed) (22 Jun 2022)

Michael Fitzmaurice: I would advise farmers not to go into it if this is the way they are going to be treated. That is straight out, and they will hear it here today.

Joint Oireachtas Committee on Agriculture, Food and the Marine: Fixed-Milk Price Contracts: Discussion (Resumed) (22 Jun 2022)

Michael Fitzmaurice: I have a suggestion, if it is acceptable to the committee and with the goodwill of Ornua. If there are eight co-ops, we should not have one front such as Irish Co-operative Organisation Society, ICOS, coming before us. If 600,000 l have gone somewhere and we do not know where, we need to meet the CEOs of the eight co-ops and drill down into the matter.

Joint Oireachtas Committee on Agriculture, Food and the Marine: Fixed-Milk Price Contracts: Discussion (Resumed) (22 Jun 2022)

Michael Fitzmaurice: I am sorry; 600 million l to 700 million l. It is 1 billion l altogether.

Joint Oireachtas Committee on Agriculture, Food and the Marine: Fixed-Milk Price Contracts: Discussion (Resumed) (22 Jun 2022)

Michael Fitzmaurice: If the committee is willing, we must hold such a meeting within a month, before the holidays. With all due respect to the Ornua representatives, whom we thank for coming in, we should bring in the CEOs of the individual co-ops to answer the questions if they are prepared to come in. This has to be nailed down for the farmers or we are going to be in bother. Perhaps we could work on this in...

Joint Oireachtas Committee on Agriculture, Food and the Marine: Fixed-Milk Price Contracts: Discussion (Resumed) (22 Jun 2022)

Michael Fitzmaurice: I have one last point to make. Would the Ornua representatives be prepared to go back to their board? As I have said, I am not an expert on this but this proviso of 23 keeps coming up. Would they prepared to go back to the board to try to work out a solution with regard to the percentage so that Ornua could give a better offer to resolve this issue for those farmers who are in deep...

Joint Oireachtas Committee on Agriculture, Food and the Marine: Fixed-Milk Price Contracts: Discussion (Resumed) (22 Jun 2022)

Michael Fitzmaurice: Why have they said the one thing? What is the reason for that?

Joint Oireachtas Committee on Agriculture, Food and the Marine: Fixed-Milk Price Contracts: Discussion (Resumed) (22 Jun 2022)

Michael Fitzmaurice: They have not gone into the nitty-gritty.

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