Dáil Éireann Debate, Tuesday - 5 July 2022
894. Deputy Matt Carthy asked the Minister for Agriculture, Food and the Marine his proposals to support dairy farmers in fixed price milk contracts bearing the financial burden of increased input costs; and if he will make a statement on the matter. [35839/22]
Amharc ar fhreagraThe matter of fixed milk prices has been brought to my attention recently over the past few months.
Fixed price contracts are a commercial decision between dairy co-ops and their suppliers, and indeed can be an appropriate risk management tool for suppliers to guard against times of high volatility in milk prices.
I am aware that the unprecedented increase in input costs is creating particular difficulties for dairy farmers who have a significant share of their milk supply locked into fixed price contracts currently. I am pleased to see the recent move from some of the dairy co-ops, who have responded by increasing the price paid to farmers on existing fixed milk price contracts with an additional supplementary payment in response to increasing production costs.
I must emphasise that it is not within the remit of my role to intervene in commercial arrangements between supplier and purchasers. I am also aware that contractual arrangements will exist at other points of the supply chain.
However, my Department continues to monitor the market situation closely for dairy and other agri-food commodities.
