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Dáil Éireann debate -
Thursday, 9 Dec 1999

Vol. 512 No. 5

Written Answers. - Beef Industry.

Bernard J. Durkan

Question:

80 Mr. Durkan asked the Minister for Agriculture, Food and Rural Development the degree to which sufficient slaughtering, boning and packing and other ancillary facilities are available to meet requirements in the meat industry; and if he will make a statement on the matter. [26543/99]

The McKinsey Study, which was published in 1998, found that there is significant under used slaughtering capacity in the beef processing sector. It also concluded that there are considerable benefits to be gained from a rationalisation process leading to a better matching of capacity with actual requirements. The beef task force recommended that the industry itself should address this problem by providing buy-out facilities to expedite the rationalisation process, which would have regard to regional balance and competition for cattle.

The task force also recommended that significant public funding should be provided under the next round of the Structural Funds for the support of a major development programme for the beef industry in the context of a better matching of slaughtering capacity with cattle supplies. Under the national development plan, the Government has decided to give priority to capital investment in the beef sector.

In the light of developments in the pigmeat sector following a fire at a Northern Ireland pig processing plant and the consequent effects on the incomes of those producers who had supplied that plant, I have asked Enterprise Ireland to examine the structure of the pig processing industry and to report back at the earliest possible date. The outcome of this study will provide a basis for assessing whether or not the sector currently has adequate capacity in the areas referred to by the Deputy.
In the sheepmeat sector, there is also some overcapacity in the slaughtering area. The provision of boning and packing facilities, which adds value to the basic product, is an ongoing process which has been assisted by public funding under the Structural Funds. Ongoing investment in this area, in response to the demands of the marketplace is envisaged.
As regards the poultry sector, there are currently 23 EU export approved slaughtering plants and I am satisfied that sufficient slaughtering, processing and ancillary facilities are in place to meet the needs of that industry.
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