asked the Minister for Agriculture if he will outline the effect that the entry of Spain into the EC will have on Irish sheep farmers; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Irish Sheep Industry.
14.
At present Spanish exports of lamb to the European Communities are limited to small quantities. This trade consists mainly of light-weight lamb carcases supplied to areas close to the French border and not to Paris which is the main market for Irish lamb.
While accession will give Spain greater access to the Community market, the structure of Spanish lamb production is such that no significant change in existing patterns of trade is likely in the near future.
Would the Minister agree that the Iberian Peninsula produces more sheep than the rest of Europe put together? Is he telling this House that even though Spain and Portugal are coming into the Community they will not have any effect on the sheep trade in Europe or this country? As the man responsible for the promotion of agriculture and as our agricultural representative in Europe, can he assure the House this will not have a detrimental effect on Irish sheep producers and on this economy over the next two or three years?
I am not going to argue the figures the Deputy has given about the Iberian Peninsula because I do not have figures before me, but my information is that the structure of the Spanish sheep production is such that the potential for Spanish lamb exports making serious inroads into the French market, which is the principal market, are extremely limited. Only 10 per cent of Spanish lamb is suitable for that market but that 10 per cent is consumed in Spain.
Spanish exports may not go to France, and we hope they will not, but there is no guarantee. However, there is a danger that they could go to another member state, which in turn could export their own domestic meat to France to the detriment of this country. This happened with regard to Britain and New Zealand.
That is not a comparable case. Spain is a member of the EC and has every right to export its agricultural commodities to any part of the Community. To compare Spain with New Zealand is wrong.
15.
asked the Minister for Agriculture if he is aware of the present difficulties facing the Irish sheep industry; if he is prepared to assist in having any of the present lamb slaughtering lines lying dormant in the country at the moment reopened for business; and if he has any proposals to improve the sheep trade.
The slaughtering capacity available to the sheepmeat industry is more than adequate for current requirements and the question of making greater use of this capacity is primarily one for the individual factory proprietors. In fact, slaughterings at export factories in 1984 showed an increase of some 11 per cent over 1983.
While the market situation for sheepmeat has been difficult recently, efforts to relieve the situation are being made in the current negotiations in the Council of Ministers. There is also a need for further improvement in the quality of Irish lamb to meet the high standards required by our main export markets.
Would the Minister agree that, as far as Irish sheep farmers and the sheep industry are concerned, we have only two main customers? Up to a few years ago there were five or six customers. If anything happened to our two customers the Irish sheep industry would be thrown into jeopardy. The fewer people there are in the industry the greater the chance that the market will become depressed. Would the Minister agree that lambs this year are making at least £10 to £20 less than they were this time last year? Would he also agree that it is time some incentive was given to get the people who were involved in sheep processing back into that marketplace in order to stabilise the market and create more opportunities for our sheep farmers?
I do not know the two customers the Deputy is describing——
You are the Minister.
Almost 50 per cent of our sheep production is consumed at home and the French consume the other 50 per cent. We have no other outstanding exports. The Belgians take a very small percentage of our sheep compared with the French. We really have only one customer abroad, and that is France. We have a difficulty on the French market at present and I would not like to underestimate it. British ewe meat is being sold on the French market at a very low price and this is causing considerable difficulty for our trade. As I said, talks are taking place at present in the Council of Ministers and we are objecting very vigorously to this cheap ewe meat being allowed on to the French market. A great deal of this meat is of very good quality, we probably would not describe it as ewe meat but as something a lot better. The British have support systems which are giving rise to problems for our sheep industry, but there are other factors involved. With the recession there is a resistance to buying lamb because it is a pricy item. Far too much of our lamb is fat and unacceptable to the French consumer and therefore is not fetching a premium price. Until we can get the correct quality of lamb we will have serious difficulties on the French market.
(Limerick West): Is the Minister getting support from any other member state in his opposition to the British exporting cheap meat to the French market? Would he outline plans, if any, his Department have to improve the quality of our sheepmeat? In view of the fact that sheepmeat is underproduced in the EC, surely there is a lucrative market here for the Irish farmer to increase sheep production and to export more?
We are getting very strong French support because this is upsetting their suppliers and producers.
(Limerick West): Any other member state?
No. As regards the over fat lamb, I am very concerned about this. I have repeatedly made my displeasure known about this trend and I have asked ACOT and An Foras Talúntais to do everything possible to see that the quality is improved and they are working very hard in that direction. I suggest that they establish transmission farms in every county in an effort to emphasise to producers how essential it is to have the leanest lamb which will sell abroad. This morning I attended the Spring Show and spent a considerable time at the sheep section. I made my views known to the people present. There is a very keen awareness in the industry that what we were doing in the past was not good enough and people are trying very hard to improve the situation. As regards exports, the market dictates the trend. We will do everything we can through CBF and any other agency to help, but the quality determines the situation at the end of the day.
This is the last supplementary.
(Limerick West): Would the Minister consider introducing a premium price for quality products?
The proprietors of the meat factories would determine premiums and prices. Anything I might do in that direction would be construed as a national aid, which is entirely illegal under EC regulations. I will examine any constructive suggestion I receive.
I will allow a short question to Deputy Noel Treacy but this will be the last supplementary.
Thank you. The Minister has spoken about the problem of the quality of sheepmeat and how this is affecting us in the market place. It has been a major problem for some time. Can the Minister indicate whether he has active, positive proposals to rectify the situation? Would he agree that the problem is really based on knowledge of when to sell?
It is not just selling policy — it is also a matter of breeding policy. I have repeatedly raised the matter with ACOT and An Foras Talúntais and they have shown a very keen interest in improving the breeding quality. It is a matter of good breeding policies together with good marketing policies. Very often farmers hold on to lamb too long until it becomes heavy and fat and it is not sold at the opportune moment.
(Interruptions.)