asked the Minister for Agriculture and Food the implications for Irish beef prices of the abolition of the British variable premium; and whether he has any proposals to deal with the situation.
Written Answers. - Abolition of British Variable Premium.
25.
The variable premium is the main market support mechanism in the UK and affects returns received for Irish beef sold there. It is not possible to assess fully the impact of the new market support regime on prices. The UK market price for beef is one of several factors which will influence the price of cattle in Ireland.
The new regime, operative from 3 April 1989, contains increases in the suckler cow scheme from £38 to £51 per cow and the special beef premium from £15 to £34. Prices will also be affected by the green pound devaluation from 27 February which eliminated MCAs on Irish beef and cattle exports. The demand and supply pattern operative at the time of the new regime will clearly also affect prices.