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Dáil Éireann debate -
Tuesday, 4 Feb 1997

Vol. 474 No. 3

Written Answers. - Grant Payments.

Joe Walsh

Question:

268 Mr. J. Walsh asked the Minister for Agriculture, Food and Forestry the loss, per animal, to farmers from the implementation of the calf slaughter scheme in terms of headage, ten-month premium, 22-month premium, extensification premium and deseasonalisation premium; the loss, in end product value terms, of not having mature animals to slaughter; and the total financial cost of this scheme. [3064/97]

Joe Walsh

Question:

269 Mr. J. Walsh asked the Minister for Agriculture, Food and Forestry the measures, if any, he intends to take to check that calves under 20 days old are supplied direct from farm of birth to factory of slaughter in order to avoid neglect or mistreatment by unscrupulous dealers; and if he will ensure that premia payments are made only to farmers on whose farm the calves were born. [3066/97]

Joe Walsh

Question:

270 Mr. J. Walsh asked the Minister for Agriculture, Food and Forestry the measures, if any, he will take to check that calves under 20 days destroyed under the calf slaughter premium scheme are properly cared for in their short lives; and if he will ensure that ante-mortem examination is carried out and premia refused in any case of neglect, malnutrition or disease. [3067/97]

Joe Walsh

Question:

271 Mr. J. Walsh asked the Minister for Agriculture, Food and Forestry the economic benefits of the calf slaughter scheme to farmers, the food industry, the Irish economy and Irish consumers. [3068/97]

I propose to take Questions Nos. 268 to 271, inclusive, together.

The calf processing scheme was originally introduced by the European Union as a part of the 1992 CAP reform package in an effort to reduce the number of calves available for beef production. This scheme, which was voluntary on member states, was implemented only by Portugal, the United Kingdom and France.

The fall in beef consumption in the EU in 1996 created a new surplus of beef in the EU and a need to reduce production. The measures adopted by the Council in October 1996 obliged member states to introduce an early marketing premium scheme for veal calves or the calf processing scheme. As Ireland has no veal industry we are obliged under Council Regulation (EC) No. 2222/96 to introduce the calf processing premium scheme.

Nine EU export licensed meat premises have been selected as processing centres. The centres are strategically located to minimise haulage distances for the calves. The transport of these calves is subject to the strict conditions set down under EU and national legislation. The processing centres are required to meet new and strict animal welfare requirements. The calf processing premium will be paid only on animals which are in a fit and healthy condition on presentation and are processed in conformity with the conditions applying under the scheme. I am, therefore, satisfied that the scheme as operated should not give rise to animal welfare problems.

The object of the calf processing premium scheme and the early marketing premium scheme for veal calves is to reduce by 1 million the number of calves available for beef production. This number is equivalent to about 350,000 tonnes of beef per annum within the EU. This measure will assist in bringing the market into balance, thereby assisting producer prices to recover to reasonable levels and orderly marketing to be restored within the EU and internationally.

The number of calves which enter this scheme in Ireland will be determined by the price of calves relative to the value of the premium. Because calf prices in Ireland are traditionally higher than those in other EU countries it is likely that the numbers entering the scheme under the current rate of premium will be small.
The losses in premium as a result of the disposal of calves through the scheme will be determined by (i) the eligibility of the animal for premium, (ii) whether the animal is a bull or steer, (iii) the level of stocking intensity of the enterprise and (iv) the date of slaughter.
The premiums available for steers and bulls are as follows:
Special Beef Premium for Steers: £90.17 per head on up to 90 animals in each age category — ten months and 22 months.
Special Beef Premium for Young Bulls: £111.98 per head on up to 90 animals between the ages of ten and 21 months.
Extensification Premium: £29.80 is granted provided the stocking density on the producer's holding is less than 1.4 l.u. per hectare per year. Where the stocking density is less that 1 l.u. per hectare the extensification premium is £43.13.
Deseasonalisation Premium: The rates of payment in respect of steers slaughtered in licensed meat export premises 1997 are as follows:
Animals slaughtered in the period 1 January 1997 to 15 April 1997, £60.09; animals slaughtered in the period 16 April 1997 to 29 April 1997, £45.07; animals slaughtered in the period 30 April 1997 to 27 May 1997, £30.05; animals slaughtered in the period 28 May 1997 to 10 June 1997, £15.02.
These national losses in premia and output value must however be measured against the losses that would arise if no action was taken to restore market balance.
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