asked the Minister for Agriculture and Fisheries if he is aware that the Dublin District Milk Board is paying only 8 new pence per gallon for surplus milk during the month of May; and if he considers that this is an economic price for the producer.
Ceisteanna—Questions. Oral Answers. - Dublin Milk Prices.
58.
I am informed that the board has regard to the seasonally varying volume of milk reaching Dublin in fixing their prices for surplus milk from month to month and that as against lower prices in certain months, including May, during which there is heavy over-supply, higher prices are paid in other months when supplies and the surplus are usually low.
I have no reason to question the suitability of the Board's arrangements in this matter.
Is the Minister aware that the basic price in April was 8-5/12 new pence with an allowance for the special levy of 3-7/12 new pence, a total of 12 new pence? In May it was 4-5/12 new pence and the special levy was 3-7/12 new pence, making a total of eight new pence. Would the Minister care to comment on whether he considers that eight new pence per gallon is an economic price? Would he also state whether he agrees that this arrangement weighs very heavily in favour of the big producer who will get something back at a later season of the year and that the small producer has to sell his milk at a low price and has no means of recovering the difference when the milk is scarce?
In the first place I think it is necessary to point out that the board consists of a majority of producers. In the second place the price paid for surplus milk is variable from month to month. In the coming month it will probably go up by two new pence. You cannot, therefore, treat the month of May, which is a flush month, in isolation. With regard to the Deputy's suggestion that there is some discrimination in favour of the bigger producer, I do not accept that because the bigger producer is more likely to produce the bigger surplus.
Yes, but the bigger producer will be able to benefit from the higher price at a later stage while the smaller producer who has what may be considered his harvest in May has no way of recovering even though he almost has to give it away now.
The Deputy tends to treat the May price in isolation. You have to look at the overall picture, the price the producer gets all the year round. There is also the fact that the individual producer must regulate the flow of his supply in order to ensure that the rate of his supply does not run him into low value surplus milk.
It is very difficult for the smaller man to do it. The bigger man may arrange it all right.
I accept that it can be difficult but with good hard management it can be achieved.
What about the man with ten cows?
I do not think the man with ten cows would have much trouble with a surplus.
Of course he would because his quota would be relatively low.
He has not enough cows anyway.