Payment for cattle is primarily a matter between meat processors and producers. However, I have expressed disappointment on a number of occasions in the past about the flat pricing system which had been adopted by the meat processors until recently. I understand the main reason for this approach is that following the BSE scares of 1996, the main market for Irish beef is in third countries, where a premium is not placed on high quality beef. The recovery of EU markets will be helped by a greater emphasis on the production of high quality cattle which can come about only when a quality based payment structure is fully implemented.
In view of this, I am pleased that, following discussions between my Department, the meat processors and the IFA last year, most meat processors have moved to a quality based pricing system with premium prices being paid for better quality cattle. It is important that this trend is maintained. The task force on the beef industry, which the Minister set up at the end of last year, is examining what further needs to be done in this regard.