Written answers

Wednesday, 12 December 2012

Department of Agriculture, Food and the Marine

National Milk Agency

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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To ask the Minister for Agriculture, Food and the Marine if the remit of the National Milk Agency could be extended in order that it would be able to control the price paid for liquid milk, not only to farmers by the processors, but also by the retailers to the milk processors; if he will ensure that all stages in the chain have a price input from the National Milk Agency and to ensure a fair price for everybody; and if he will make a statement on the matter. [55767/12]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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The National Milk Agency, which operates under the aegis of my Department, does not have a role in setting the retail price of milk. The Agency was set up in 1994 to ensure an indigenous year round supply of milk for liquid consumption. All farmers supplying milk for liquid consumption in the winter months do so under contracts with processors which must be registered with the Agency. Farmers supplying milk in the winter months are paid a premium over the price paid to farmers who only produce milk in the spring-autumn period. This premium reflects the additional costs of producing milk in the winter months.

There is a general prohibition of price fixing under EU and Irish competition law. While prices paid for products in the marketplace are a function of a number of market forces and the negotiation of commercial contracts is essentially a matter for the contracting parties, the Programme for Government contains a specific commitment to enact fair trade legislation in the retail sector so as to ensure balance between various players in the grocery goods sector. This comes under the remit of the Minister for Enterprise, Jobs and Innovation. I understand that legislation is currently being prepared to allow for the introduction of a statutory Code of Practice to regulate particular practices in the grocery trade.

At EU level I understand that the high level group on better functioning of the Food Supply Chain has asked the Expert Business to Business Platform to make recommendations on a Community wide approach. The Platform has drafted guidelines of good practice but has not yet reached agreement on implementation. Discussions are continuing.

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