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Dáil Éireann debate -
Thursday, 12 Nov 1998

Vol. 496 No. 5

Written Answers. - Beef Prices.

Bernard J. Durkan

Question:

109 Mr. Durkan asked the Minister for Agriculture and Food the price of Irish beef in the shops a year ago compared to the price today; the price paid to the consumer a year ago compared to the present time; and if he will make a statement on the matter. [23352/98]

Bernard J. Durkan

Question:

113 Mr. Durkan asked the Minister for Agriculture and Food the investigations, if any, he has carried out into the fact that beef prices to producers in this country are lower than in other EU member states; and if he will make a statement on the matter. [23358/98]

Beef prices to producers in Ireland have always tended to be lower than overall EU average. The reasons for this included distance from the market, suitability of product and preference for domestically produced beef. An examination of the prices paid in Ireland and the Community during the period 1992 to 1997 shows that Irish steer prices were on average 3 per cent below Community steer prices and 7 per cent below Community young bull prices. However, since the BSE crisis in 1996, the gap between Irish and EU prices has been widening due to a fall in our exports to EU markets arising from a reduction in consumption and greater preference being given to nationally produced product. This has led to a situation where exporters have a greater dependence on more volatile and lower returning third country markets. The collapse of the Russian market has accentuated the difficulties since early autumn with the result that the gap between EU and Irish prices has now widened further.

To address the market difficulties I have negotiated substantial improvements in market supports with the EU Commission through an increase in export refunds and wider intervention access. These supports along with greater penetration of the higher priced EU markets should ensure that cattle prices increase over the coming months.

With regard to the question on consumer prices the CSO collect data on a monthly basis but the most recently published retail prices for the "basket of beef cuts" was for August 1998. The prices for August 1998 and November 1997 were as follows:

Consumer Price

August 1998

November 1997

Round Steak (p/1b)

284

280

Sirloin Steak (p/1b)

386

361

Rib Steak (p/1b)

184

188

Leg Beef boneless (p/1b)

196

197

Brisket pot roast (p/1b)

187

185

The reported producer prices for steers and heifers in November 1997, August 1998 and November 1998 were as follows:

Week beginning

2 November 1997

3 August 1998

3 November 1998

Steers

84.9

87.0

78.8

R3 grade (p/lb incl. VAT)

Heifers

85.1

86.5

75.8

R3 grade (p/lb incl. VAT)

The monitoring of consumer prices is a matter for the Director of Consumer Affairs and the Minister for Enterprise, Trade and Employment and I have brought the matter to the attention of Minister of State, Deputy Kitt. I wish to state however, that any reductions in producer prices should be reflected in consumer prices.
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