Pat Moylan (Fianna Fail)

I listened attentively to speakers in this important debate and compliment them on the sincerity of their contributions. The deal is done. From a farming point of view, we must consider where we go from here and where profits can be made.

There has been much talk about the dairy sector. Recently an IFA bulletin outlined where the money paid for the gallon of milk went. It described it as a rip off by retailers and caterers. The organisation has to tackle this. The large supermarkets get 35% of the average retail price of branded milk for simply providing shelf space for a few hours. Farmers have to deal with this. The IFA also pointed out that the catering trade, which accounts for over 16% of milk sales, charged up to ten times the producer price. It is the equivalent of approximately €3 a litre. The farmer only gets 31 cent a litre. Overall, the farmer gets about 38%; the dairy, 26% and the retailer, more than 35% of the price of a gallon of milk. From the point of view of dairying, this must be seriously examined. That is the only point that people have mentioned to me in those talks which might give rise to some slight losses.

Farmers look at savings and those of us who are in farming – I am a member of the IFA and do some farming – look at where we are going and we have to make hard decisions now. If the prices that farmers were given for store cattle in the spring continue they are not going to make money from what is predicted by the experts for the finished product. We have to make up our minds that we are in that market and if we want to make money and stay there, we have to think twice about the type of prices that we are given. In some cases we are competing with part-time farmers who use their stock as lawnmowers to consume the grass in summertime. A farmer cannot compete with that type of individual for whom farming is a hobby.

I read recently in the newspaper that when Grange Research looked at stock management they said that 20 hours per week was the most a livestock farmer with 70 units should spend looking after the livestock. That research also said that there are many more farmers who must look at alternative incomes because there is little use in spending all week walking around a farm if 20 hours is sufficient to look after 70 to 100 stock.

We need to consider the position with regard to land and, while it may not be relevant, the Minister must look at that and how a young farmer who wants to expand his holding can compete against the speculators who own a substantial amount of land. We see people who receive in excess of €10,000 an acre for land and ask how can a young farmer buy land that comes up for sale when there is that type of money available? That has to be looked at with regard to the people who can purchase farm land and continue in farming, if we want to keep them in farming.