Michael Finucane (Fine Gael)

I thank the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Michael Ahern, for his attendance. This is an issue which will concern him as he too comes from west Limerick.

The industry in Castlemahon and Kantoher, now Kerry Foods, is involved in the production of chickens. It is synonymous with the west Limerick area where it continues to provide valuable employment. We want this industry to thrive into the future.

There is concern regarding the supply of broiler chickens to the processing unit. There was a peaceful picket outside the gates last week by concerned people involved in poultry production in the area. Several councillors and Oireachtas representatives were also there in a show of solidarity with the current plight of the industry.

Those involved have formed the West Limerick Co-op Poultry Producers Association Limited, which has approximately 28 members. In most cases, they have stopped supplying the factory unit, which is a matter of concern. The producers have not done this lightly; they felt pressurised into it.

The nub of the matter is the importance of getting a viable price for broiler chickens. Currently, they receive 30.85 cent from Castlemahon Poultry Products Limited. The cost of catching and transporting the chickens is factored into this amount, together with feed costs. However, the 30.85 cent does not yield any significant profit. If it did, there would be no protest. There are also variable costs, which include electricity, gas heating, bedding, cleaning, maintenance repairs and medication. Taking these into account, the producers estimate the profit margin is approximately 5 cent. This is uneconomic if a producer is making repayments on a poultry unit. It is out of sheer frustration that many of them find themselves in this situation. A big part of the problem is that management will not talk to them as a unit in order to discuss their difficulties.

The risk factor involved in poultry production is never quantified or factored into the profit margin. It is a 24-hour labour unit, because the producer must be available at all times. In many cases it is a family enterprise, either in its own right or to compensate for or supplement another farm income.

There are many vital components in poultry production. Poultry units must conform to a high standard and are subject to quality audits by the multiples they supply. Everything is known about their product with regard to its quality. Questions have been raised in the House and in the media with regard to where some of the chickens come from. Sometimes questions are asked about chickens coming from Thailand, China, Brazil and other countries. The consumer has a right to know the country of origin. However, in this instance Irish chickens are produced.

This is probably a delicate matter for the Minister of State. Hopefully, Department personnel can talk to the manufacturing unit involved and see whether discussions can take place with regard to re-establishing supply to the poultry processing unit. It is in the interests of Castlemahon Poultry Products Limited to use these suppliers. Over a period of time, it will obviously affect their production ability.

On the one hand it is a delicate situation for us as politicians, because we want a resolution to this issue and want to ensure that valuable employment continues. However, we also want to ensure these people operate a viable unit.