Dáil Éireann debate -
Tuesday, 6 Feb 1996

Vol. 461 No. 1

Written Answers - Livestock Prices.

Mary Wallace

Question:

239 Miss M. Wallace asked the Minister for Agriculture, Food and Forestry if his attention has been drawn to the current crisis in the livestock industry where efforts to have export refunds restored to a viable level have been unsuccessful leading to losses of up to £70 per head for winter fatteners; if his attention has further been drawn to concern in the farming industry of the fact that these producers are the vital players in the market each spring as they ensure an all year round supply of cattle to the market place and the ongoing concerns that under current conditions these producers will be drawn out of business and that this will have the effect of increasing the autumn seasonality bulge in cattle supply, a situation which in the past has led to an autumn price collapse; and if he will make a statement on the matter. [2324/96]

Minister for Agriculture Food and Forestry (Mr. Yates)

I am fully aware of the important role played by winter fatteners in the beef industry and the difficulties which they are facing as a result of the fall in market prices since the end of last year. This fall has been mainly due to difficulties on the British market and the uncertainty created by the reductions in export refunds during last autumn.

I have impressed on the EU Commission and my colleagues at the Council of Ministers the need for a restoration of the refunds to levels which would underpin the income situation of beef producers and, in particular, winter fatteners. I am pleased that the Commission have responded to this pressure by increasing refunds by 5 per cent for live cattle and male carcase beef and 7.5 per cent for boneles beef at the meeting of the Beef Management Committee on 2 February.

While this increase, following on a 14 per cent increase last December, is welcome I will continue to press for a restoration of the refunds to levels which would make Irish beef and cattle competitive on international markets and at the same time would provide producers with a reasonable return on their investment and effort.

The level of export licences, prefixed at the higher rate of refund last autumn and which are in adequate supply to cover normal exports until the end of this month, will also be an important element in maintaining prices for winter fatteners. In addition, the deseasonalisation slaughter premium, which is worth up to £60 per steer slaughtered this spring, will be an important boost for these producers. This scheme has been very successful in preventing an autumn glut of cattle coming on the market with consequent benefits for the industry in general. I will be pressing to have this scheme continue again in 1997 in order that the improvements brought about can continue.