Dáil Éireann debate -
Tuesday, 14 Oct 1997

Vol. 481 No. 4

Written Answers. - Beef Industry.

John Perry

Question:

91 Mr. Perry asked the Minister for Agriculture and Food the plans, if any, which have been implemented for the necessary adjustments, which he referred to in his statement on live export to Egypt; if he will appoint a regulator whose task it would be to set the price per pound paid to farmers from the meat factories in order to prevent the apparent price cartel which severely affects farmers' incomes. [16056/97]

Minister for Agriculture and Food (Mr. Walsh)

It is a priority for me to ensure that the current BSE related restrictions on our exports of live cattle to Egypt are removed. Egypt has been an important market for live cattle which has been closed to imports from Ireland since the beginning of January 1997. A commitment in principle to reopen the market for Irish cattle was communicated on 4 June to my predecessor, subject to agreement on a number of conditions. In the first instance therefore, discussions at a technical level on these conditions were necessary. These culminated in the visit of two delegations from my Department to Egypt in August. Many of the veterinary requirements for the resumption of trade were agreed and a package of proposals was offered including assistance for the removal of specified risk material. The latter was of importance in terms of allowing the Egyptian authorities to provide the same type of guarantees as available to European consumers.

Final agreement on reopening the market was delayed due to increasing concerns in Egypt relating to food imports generally. In view of this I contacted the Egyptian Deputy Premier and Minister for Agriculture, Dr. Wally and met him in Cairo on 28 September. I also met the Minister for Trade and Supply, Dr. Goweily. As a result of my meetings, the Egyptian Authorities agreed to consider accepting a trial shipment of live cattle. A detailed proposal for such a shipment is at present being formulated by my Department in conjunction with the Live Cattle Exporters Association for consideration by the Egyptian authorities. I would hope that a trial shipment, properly controlled, will convince the Egyptian authorities to reopen the market fully to Irish cattle imports.

I should make the point that exports of frozen beef to Egypt have increased substantially this year. The quantity of frozen beef exported in the first half of the year, estimated at 30,000 tonnes or equivalent to almost 100,000 cattle, exceeds the total for the full year 1996. This shows increasing acceptance by Egypt not only of the quality of Irish beef but of the controls on its production. The increased demand for frozen beef is of course to be welcomed and our trade with Egypt is adjusting accordingly. This is also a factor which obviously influences the continuing negotiations in relation to this market. It does not, of course, diminish our resolve to have the restrictions on live cattle removed.

As regards cattle prices, it is not open to my Department to appoint a regulator to set the price paid by meat factories to farmers. Prices paid by meat factories to farmers are determined by a number of factors such as returns from the main export markets and competition for cattle on the Irish market. With regard to the latter point, my Department has referred the possible existence of "concerted practices" in the beef industry to the Competition Authority. I am awaiting the outcome of these investigations. However, I believe that there is a case for a greater level of transparency and understanding between producers and processors about cattle prices and I will be doing everything in my power to encourage that.