John Paul Phelan (Fine Gael)

I thank Senator Bradford for sharing his time. I welcome the Minister of State, Deputy Sargent, on this important issue. I come from south Kilkenny which has traditionally been a strong dairy farming area. I was reared on a dairy farm. I compliment Senator Bradford on tabling this timely motion. I grew up in a household where there were nine of us at one time between my siblings, parents and other extended family members. There were 40 cows and 60 acres and we all lived on it. My brother now has a farm of twice that size. He has two infant children and a wife who works full time. Were it not for her work they could not live off the farm, and he milks approximately 60 cows. That is a sign of the way things have gone.

Only a few years ago, the former European Commissioner for Agriculture and Rural Development, Franz Fischler, who was a controversial man in his own right, had a particular view of the European model of farming based on the farm family. That used to be the model that existed in South America and other parts of the world. However, it disappeared following the arrival of the ranchers, which meant that smaller producers could not continue.

Sadly, if the milk price goes down to 19 cent per litre, which is the lowest end of the range being projected, we will see a complete decimation of dairy farms and rural communities. Towards the end of 2007 the price was 36 cent per litre. We are now being told that by the middle of this year it will reach approximately 19 cent or 20 cent per litre. Even Teagasc's figures show that the most streamlined and cost effective dairy farm operation can produce milk at 16 cent per litre. For those people, that price would leave a margin of 3 cent. The majority of small producers do not have the scale to produce at 16 cent per litre. This is likely to lead to the devastation of what has been a way of life for many people, particularly in the southern half of the country and in the hinterland of County Dublin.

I call on the Government to try to do something to ensure that that way of life is not completely washed away and that people who are producing a top quality product can get a price that reflects the effort they put in. Sadly at present the multiples, which are importing milk from across the Border and selling it below the price of milk produced in the Twenty-six Counties, are making huge profit. It is arguable that the processors are also making considerable profits, even though Glanbia announced some redundancies during the week. It seems that the producer is the one to take the hit. They cannot continue to do that for very much longer. There is still time for something to be done. In other European countries export refunds are being examined as potential solutions. I do not necessarily believe that is the solution. However, we need to do something to ensure the long-term survival of the family farm unit. I believe this is an issue that is close to the heart of the Minister of State and that he would like to see it protected into the future.