asked the Minister for Agriculture and Food the way in which he envisages a planned beef industry, having regard to the seasonality of supply particularly when there is a question of serving the premium outlets in Europe, that is, the supermarkets and hypermarkets which require supplies all year round; and, considering the seasonality in Ireland, if the industry can develop the processing sector thus increasing the added value and job creation content.
Ceisteanna—Questions. Oral Answers. - Beef Industry.
10.
The seasonal supply of cattle to meat factories is determined primarily by the relative profitability of the different cattle production systems. Last year I succeeded in getting EC Commission agreement to extending the date for eligibility for the suckler cow premium from 30 November to 31 January and the premium will be increased from £38 to £51 from 3 April. With the termination, also from that date of the UK variable premium, for which only prime cattle qualified, the differential between factory prices for maiden and once-calved heifers should disappear. These developments will improve the relative profitability of once-calved heifer systems of production and heifers which produce calves before 31 January will be available for slaughter during the following spring.
Cattle supplies in Europe are expected to be tighter over the next few years and this should present an opportunity to any factories to obtain more year-round markets, thus reducing the problem of seasonality. I believe that much can be achieved by meat factories through their pricing policies and I would urge them to look to their longer-term interests as well as their immediate ones in framing them.
Is the Minister aware that the number of cattle slaughtered in May last year was in the region of 27,000 and that the figure was 170,000 in October? At present winter fatteners are losing up to £100 per head and all the support systems are geared towards the grazing season. Has he any plans to alleviate this?
I accept there is an immediate, acute problem which has been caused by two things——
It was caused by the Minister and his colleague.
If the Deputy will listen to an objective presentation I will proceed. By any standards last autumn's prices were a record and after the winter fattening season one would require a 10 per cent to 15 per cent increase over the autumn figure. Given the record prices obtaining last autumn, it is pretty evident that it would literally have been taking a big risk to try to achieve that level of profit. That is the first point. Secondly, I am glad to be able to tell the Deputy, despite what one might call the reduction which is now evident arising from the record prices that there is a number of reasons for believing that cattle prices will improve in the very near future. Let me indicate what these are. First, the green rate adjustment of 1.55 per cent applied as and from 27 February and this of course will also affect intervention prices as well as reducing the negative effects of MCAs.
Three pence a pound.
It is a significant increase.
Most of our cattle are too fat to grade.
The Deputy should listen to the rest. If the Deputy were to ask me why I think——
Take a look at Tipperary to see who got it.
The only problem for the Deputy is that over the past couple of years things have been so much better than they ever were in his time. Would he mind me continuing?
Is the Minister codding me?
Is he now taking credit for the weather?
This question is leading to some disorder.
The intervention price for steers was triggered on the same date and is now applicable. Thirdly, and this is a welcome development, live exports which have been dormant since January have now recommenced. Fourthly, and Deputies should be aware of this, farmers' optimism on the future of beef production is reflected in the prices they are prepared to pay for calves, which continue at a very high level. Despite the fact that veal production is going down I am glad to be able to tell the House, following on a question asked of the Taoiseach in relation to cattle supplies — Deputies will recall that I told the House that the cattle population increased for the first time in five years last year — that in about one hour's time the results of another survey will be published by the Central Statistics Office which will contain very good news in relation to our cow, heifer and calf numbers and all other matters that Deputies are concerned about.