Dáil Éireann debate -
Tuesday, 4 Apr 2000

Vol. 517 No. 3

Written Answers. - Beef Industry.

Denis Naughten

Question:

29 Mr. Naughten asked the Minister for Agriculture, Food and Rural Development the plans, if any, he has to overhaul the beef industry to improve production, processing and promotion; the new measures, if any, he has put in place since January 2000; the timetable for any future measures; and if he will make a statement on the matter. [9657/00]

Minister for Agriculture, Food and Rural Development (Mr. Walsh)

The report and recommendations of the task force on the beef industry is a blueprint for the development of the beef sector from primary production through to marketing. I have established a monitoring committee under the aegis of Bord Bia to oversee the implementation of a number of these recommendations. The remaining recommendations of the beef task force are, depending on their nature, for implementation by the industry itself and by the relevant State agencies in co-operation with my Department.

As far as primary production is concerned, the major requirement is to improve the quality of cattle through better breeding and husbandry practices in order to ensure an adequate supply of high quality beef needed to meet the demanding requirements of the EU market. Both Teagasc and the Irish Cattle Breeding Federation have intensified their efforts in recent months to promote the development of quality breeding by producers. For example, Teagasc has just completed a series of eight road shows designed to give producers guidance on the ideal heifer replacement essential for the production of quality beef. However, in the final analysis, producers' decisions in this area will be based on the extent to which prices paid by beef processors reward quality production. The beef task force monitoring committee is examining this issue and I am confident that progress will be made in the months ahead.

At the processing stage, the main issues which need to be addressed are the over capacity in the slaughtering sector and the need to encourage the production of value added products. Under the national development plan, priority will be given to the beef sector at primary slaughtering in the context of the productive sector operational programme. This initiative, operating in partnership with the industry itself, should facilitate development and rationalisation in the beef processing industry in a planned way. In addition, under the national development plan, the investment related to the production of value added products will also be encouraged.

With regard to market promotion, responsibility for beef promotion is a matter for Bord Bia and the industry itself. Substantial resources are available to Bord Bia for that purpose. However, given EU constraints on the promotion of Irish beef on the marketing of product on the basis of the country of origin, the promotion activities of Bord Bia need to be supplemented by an industry funded campaign which is not subject to EU constraints. The introduction of a marketing fund financed at industry level was a major recommendation of the task force and is one of those matters which the monitoring committee has been asked to implement.

Apart from these issues, a major requirement in the beef industry is to remove the distrust which exists between producers and processors and bring about a greater degree of partnership and co-operation between them. To this end, my Department has been publishing prices paid by individual meat factories since mid-February. The Government has also decided to establish a price transparency mechanism based on independent verification. The latter issue is being progressed in the context of the beef task force monitoring committee. In addition, the Government has engaged an independent group to examine allegations of anti-competitive practices in the industry and the reasons for the large differentials between producer and consumer prices. The group has been asked to complete its report by the end of April. All these initiatives should help to rebuild the trust and partnership between beef producers and processors needed to enable the industry to achieve its full potential.