Dáil Éireann debate -
Tuesday, 18 Nov 1997

Vol. 482 No. 8

Written Answers. - Drystock Farming.

Michael D. Higgins

Question:

28 Mr. M. Higgins asked the Minister for Agriculture and Food whether the Government accepts that in the absence of markets for live cattle over the past year the drystock farming sector has shown remarkable resilience and confidence; the way in which beef farmers can be expected to make a living when they are selling cattle to meat factories at below the cost of production; the way in which he intends to address this matter in the context of the Fischler and Santer CAP reform proposals; and if he will make a statement on the matter. [19466/97]

Minister for Agriculture and Food (Mr. Walsh):

Since the BSE related difficulties erupted over 20 months ago the cattle and beef industry has come through a very difficult period. However, due to a strong emphasis on secure controls, our major international export outlets have remained open, with the result that Irish beef exports to third countries are now substantially higher than in 1995. In addition, our exporters are regaining market share on EU beef markets as consumption and market prices continue to recover to previous levels. The availability of fairly flexible intervention arrangements, which have resulted in the removal of approximately 53,000 tonnes of beef from the market so far in 1997, has also helped to underpin market prices.

While Irish cattle prices have fallen below those prevailing before the BSE crisis, the loss in farm income arising from the lower prices have been substantially offset by the payment of approximately £100 million in additional premiums to Irish producers under the two BSE compensation packages which were adopted by the European Union last year. Furthermore, the impact of the revaluation of the Irish Green Pound on producers' incomes has been substantially mitigated by the various EU and nationally funded compensatory packages amounting to some £48 million, which were agreed earlier this year.

Notwithstanding the difficulties arising from BSE, cattle prices have remained above the cost of production. In any event, cattle prices must be viewed in the context of the direct payments system which is designed to compensate producers for lower prices. The Santer proposals are a continuation of this policy. As far as these proposals are concerned, I will be seeking to ensure that producers are fully compensated for reductions in institutional prices while at the same time allowing the beef industry to exploit all possible markets develop to their full potential. It is also my policy to ensure that the highest possible animal and public health standards apply in order that consumer confidence recovers to the maximum extent.