Written Answers. - Beef Prices.
Paul McGrath
Question:
69
Mr. McGrath
asked the
Minister for Agriculture and Food
if he will give details of the prices paid to farmers for the various grades of beef by meat factories at the time when the special slaughter premium becomes payable for each of the past five years; if he will compare these prices to those paid by the meat factories two weeks before this premium was payable; his views on the obvious price reduction; the way in which this reduction can be justified; and if he will make a statement on the matter.
[22560/97]
The deseasonalisation slaughter premium applies from 1 January each year and is confined to steers slaughtered between that date and 10 June.
The information requested by the Deputy is provided in the following table. The table also provides a comparison between cattle prices in the two weeks preceding the period of application of the DSP and average prices paid during the DSP period.
|
Year
|
Average Monthly Prices during DSP Payment Period 1 January-10 June
|
Average prices for last two weeks in year preceding DSP payment period
|
|
January
|
February
|
March
|
April
|
May
|
June
|
Average
|
|
1992
|
|
|
|
Not applicable
|
|
|
|
97.1p
|
|
1993
|
95p
|
101.4p
|
105.1p
|
103.1p
|
106.4p
|
106p
|
102.8p
|
106.5p
|
|
1994
|
108.3p
|
104.4p
|
110.8p
|
115.4p
|
116.4p
|
107.9p
|
110.5p
|
102.5p
|
|
1995
|
102.5p
|
103.8p
|
104.9p
|
105.7p
|
105.4p
|
106.3p
|
104.7p
|
98.9p
|
|
1996
|
96.7p
|
97.4p
|
96.7p
|
89.8p
|
86.6p
|
90.2p
|
92.9p
|
88.4p
|
|
1997
|
85.3p
|
83.5p
|
83p
|
79.4p
|
78.4p
|
82.9p
|
82.1p
|
Not applicable
|
There is no obvious pattern in cattle prices at the beginning of the DSP period. The above table shows that, since the introduction of the DSP in 1993, prices for January compared to the previous two weeks fell in three years — 1993, 1996 and 1997, increased in 1994 and remained unchanged in 1995. However, a comparison between prices in the two weeks immediately preceding the DSP period and average steer prices over the full DSP period, reveals that the latter prices were higher in 1993, 1994 and 1995 and lower in 1996 and 1997.
As with all commodities cattle prices are determined primarily by the situation on the market and by other factors, including decisions made at EU level in relation to intervention purchasing and export refunds. In general, it should be noted that cattle prices are traditionally higher in December than in the first two weeks of January because of strong demand in the pre-Christmas period combined with lower supplies. More particularly, the lower prices in January 1993 reflected the uncertainty on the market following the decision by the European Union in December 1992 to introduce a carcase weight limit on sales into intervention. The lower prices in January 1996 and 1997 can be largely attributed, in the case of 1996, to a substantial reduction in export refunds in the autumn of 1995 and, in the case of 1997, to a reduction in export refunds and a revaluation of the Irish Green Pound.
Paul McGrath
Question:
70
Mr. McGrath
asked the
Minister for Agriculture and Food
if he will give details of the prices paid for the various grades of beef by meat factories at this time in 1996; if he will compare these prices to those currently being paid; the currency exchange rate between the pound sterling and the punt this time in 1996 and compare it to the current exchange rate; his views on current beef prices; and if he will initiate an investigation into prices generally paid by beef factories to farmers.
[22561/97]
The prices paid for the various categories of beef now compared to 1996 and the currency exchange rate between the pound sterling and the punt in the same period are given in the following table.
|
Beef Category
|
Week Ending 30/11/97
|
Week Ending 1/12/96
|
|
Steers (Grade R3)
|
83.7 p/lb
|
87.5 p/lb
|
|
Heifers (Grade R3)
|
83.8 p/lb
|
86.3 p/lb
|
|
Cows (Grade O4)
|
61.4 p/lb
|
68.0 p/lb
|
|
Exchange Rate
|
IR£1 = stg£0.88
|
IR£1 = stg£1
|
Current cattle prices reflect a number of developments on the market in the course of 1997, including the revaluation of the Irish Green Pound, reductions in export refunds and the current difficulties on the British market. I have made strong representations to the Commission for additional intervention support for the beef market in order to maintain cattle prices at reasonable levels.
With regard to an investigation into prices for cattle paid by meat factories, the position is that the Competition Authority has already been asked by my Department to investigate the matter.
