Vol. 381 No. 5
asked the Minister for Agriculture and Food the action the Government have taken to correct the factors militating against Irish meat companies; and the action which is planned by the Government to stem the outflow of live cattle in a completely unprocessed state.
64.
asked the Minister for Agriculture and Food if he will outline other possible factors, such as variable premium anomalies and meat inspection charges which put Northern Ireland meat companies at an advantage when competing for cattle born in the Republic.
67.
asked the Minister for Agriculture and Food in view of the fact that meat factories are closing down due to a shortage of cattle and the seepage of live cattle out of the country to Northern buyers, the measures which are being taken by the Government to stimulate additional beef production in the country.
I propose to take Questions Nos. 62, 64 and 67 together.
The EC common organisation of the market in beef provides for a number of support measures such as intervention, aids to private storage, premia and export refunds which are designed to assist cattle and beef producers and processors. The interaction of a series of complex measures such as these can, when taken in conjunction with other factors such as market exchange rates and "green" rates, give rise to marginal distortions in some subsectors of the industry, some favourable and some adverse. However, in the overall context, these measures are of significant benefit to Irish agriculture and our economy generally.
My Department's policy is to maintain regular contact with the trade interests involved and with the EC institutions with a view to eliminating adverse anomalies as the opportunity arises.
Exports of live cattle have been declining in recent years and exports in 1987 were the lowest in modern times. I am anxious to ensure that live cattle exports are reduced even further so that the extra benefits derived from deboning, cutting up and processing the beef can be generated within the Irish economy. However, any specific action by the Government has to be taken within the limitations of Community law. There is little scope here for unilateral national action — and there is a very large industry to imperil by ill-considered action. Every effort is being made to have all negative anomalies satisfactorily resolved.
63.
asked the Minister for Agriculture and Food the views of the Government on whether the falling cattle numbers and the continued export of live cattle together with restrictions on imports, pose a serious threat to the further development of the beef industry in Ireland.
I consider it of prime importance that the decline in cattle numbers is reversed. There are clear indications that the national cow herd is recovering; the fall in beef cow numbers has been arrested and the December 1987 livestock enumeration showed the beef cow herd to be at its highest level since 1980; cow slaughterings in 1987 were the lowest for four years; this trend has continued in 1988 with slaughterings in the first four months 18,000 or 20 per cent lower than slaughterings during the same period in 1987; AI usage has increased by about 10 per cent in the first three months of 1988 over the same period in 1987.
I am confident that, allied to these favourable indicators, the very favourable prices for both cattle and calves which have been available in recent months and the favourable market outlook will convince increasing numbers of farmers to expand their beef cow herds. Attractive schemes are in place to encourage them to do so. In seeking ways to accelerate the upward trend, I must have regard to the present very difficult budgetary situation and the constraints imposed by EC rules of competition.
Live cattle exports have been declining in recent years and the 1987 figure of some 234,000 head was the lowest annual figure recorded in modern times. While some increase in live exports to Northern Ireland has taken place so far this year, I am confident that the overall trend will continue downwards.
