It is generally accepted that to respond to the increasingly competitive environment on the EU and world markets, further rationalisation in the dairy processing industry is essential. Both the report of the Agri Food 2010 Committee and the recent discussion paper prepared by ICOS share that viewpoint. While mergers of particular companies, including those referred to by the Deputy, may give rise to certain initial difficulties, this does not take away from the overall view that, in the long-term, the dairy sector will be best served by an industry structure which has the strength and capacity to match that of our major EU and third country competitors and meet the challenges which lie ahead.
The process of rationalisation is well advanced amongst our competitors. In Holland two companies handle 85% of their country's output; in New Zealand two companies handle more than 90% while in Denmark one company handles 87% of its output.