asked the Minister for Agriculture and Fisheries what is the basic price payable by creameries to suppliers for milk with 3.5 butter fat content as at 1st April, 1966 and 1st April, 1967.
Ceisteanna—Questions. Oral Answers. - Basic Creamery Milk Price.
7.
The price which any creamery determines to pay for milk to its suppliers depends, in general, on its income from the sale of dairy produce, including the proceeds of Exchequer allowances, on its production expenses and its general economic position.
For the calendar year 1965 the average price paid by creameries to suppliers was 22.45d per gallon, excluding the value of skim milk, and the average butter-fat content of milk delivered to creameries was 3.63 per cent. The corresponding particulars for the calendar year 1966 were 23.73d per gallon and 3.57 per cent.
Will the Parliamentary Secretary agree with me that averages taken over the whole industry have very little relevance when dealing with the fundamental question as to whether, in fact, the increases stipulated by this House for the price of creamery milk do, in fact, reach the farmers who are producing the milk? Would the Parliamentary Secretary consider inquiring of individual creamery groups what exactly their experience is, for, in connection with one with which I am familiar outside my own constituency, I gather the farmers are actually receiving .2d less for milk of corresponding butter content than they received at this time last year?
As the Deputy is no doubt aware, there is no such thing as a basic price for milk to which all creameries are subject. The only requirement is that all milk must be paid for in full in accordance with the butter fat content and quality bonus. I think that this should answer the Deputy's question.
May I suggest to the Parliamentary Secretary that it might be expedient if, in order to implement the purpose of the House in increasing the income of milk producers by authorising increases in the price of creamery milk, he would ask the IAOS to inform him of any creamery groups or co-operatives where the suppliers are in fact getting less for milk now than they were getting before the basic price was increased by 1d a gallon?
That raises a somewhat different question from that which the Deputy put down.
I think that is the purpose of the question I put down. Perhaps the Parliamentary Secretary will consider the advisability of making these inquiries?
We always consider the advisability of everything but what we are aiming at is to increase standards rather than lower them. That, I think, is the kernel of the position.
The net result is that the small farmers are getting less for their milk.
There has been provision in the Budget to rectify any diminution.
One would hope that would reach the producers.