asked the Minister for Agriculture and Fisheries if he is aware that a large portion of the recent increase in the price of milk delivered to creameries is not being passed on to the producer; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Milk Prices.
5.
The recent revision of EEC price supports for agricultural products included increases in the Community's intervention prices for butter and skim milk powder. These increases in intervention prices caused corresponding increases in the returns available to sellers of dairy products on wholesale markets, who of course are normally either the manufacturers of such products or marketing bodies operating on their behalf.
The manufacturers of dairy products in this country are mainly co-operative societies of dairy farmers. They pay for their milk supplies out of their receipts from the sale of the products which they manufacture, after deduction of operating costs and other charges. I understand that, in the light of substantial increases in their operating costs in recent times, they maintain that they cannot afford to pass on to their milk suppliers all or nearly all of the increase in market returns that has now become available to them.
I have no control over the price payable for creamery milk supplies and I cannot intervene in the matter. However since most of the manufacturers concerned are controlled by the creamery milk suppliers, it should be possible for them to reach agreement on an equitable sharing of the price increase as between the manufacturers and the milk producers.
Is the Minister aware that a fraction only of the increase has reached the farmers? Is the Minister further aware that what he has just said is not of much satisfaction to farmers who had been expecting a large increase this year? Is the Minister aware also that they had been informed, through the various farming papers and organisations, that they would be getting 32p and 33p per gallon for their milk delivered to the creameries? Is the Minister now aware that they will be very lucky if they get 30p per gallon, which is what really matters? The Minister should have some power to investigate what happens down along the line. Might I ask the Minister to take that power into his hands and not wash his hands of the matter because the producers are depending on him?
The Deputy is making a speech.
I have a further note here which says it is not feasible at this stage of the milk season to ascertain how much of the increase is being passed to the producers as milk supplies are relatively small and no average price pattern has yet emerged.
Question No. 6.
According to records in the Department of Agriculture—is the Minister aware of this—there is still an average price pattern, which is far less than was expected. It is less than 30 pence, which is a disgrace. There is 2p or 3p per gallon gone astray now and nobody in the Department cares two hoots.
Would the Minister not agree that one of the reasons creamery societies are constrained to make a deduction from the price per gallon paid to farmers is that the expected increase in creamery supplies has not taken place. It has not taken place because the management of the cattle herd here in the past two years has been disastrous.
Hear, hear.
Of course, what the Deputy says is not true. Certainly it is not true of the present——
It is true.
——year's production so far. Production in the present year is up by 13 per cent. That is all the indication I have.
Is the Minister saying that supplies to creameries for the coming year will be 13 per cent up on last year?
What I have said is that the actual deliveries up to the present time are 13 per cent up on what they were in 1974.
If the Minister thinks there is not going to be a fall, he is talking through his hat.
Arising out of what the Minister has said, can he deny that 18,000 milch cows were slaughtered last year?
We are getting into another area now.
I am not going to deny a figure like that given off the top of the Deputy's head or off my head. I just do not know.
The Minister does not know how many milch cows were slaughtered last year?
I do not know how many milch cows were slaughtered. I cannot carry in my head all the figures the Deputy might like to get.
The Minister has more heads and more assistance on which to rely than have I.
Is the Minister aware that, with the drop in the price of calves over the past two years, milk farmers are receiving 3p per gallon less for their milk?
Of course, it is easy to put a figure on that.
The simplest thing in the world.
But there is nothing at all about the price increase they received at the same time.