Vol. 519 No. 4
2 Mr. Penrose asked the Minister for Agriculture, Food and Rural Development the steps he will take to promote quality beef production, by means of a breeding policy; the policy initiatives being pursued to ensure that the quality of beef emanating from Irish beef herds are suitable for the euro market; and if he will make a statement on the matter. [13957/00]
I have made it clear in recent public statements that I see a need for an improvement in the quality of Irish cattle as measured against the EUROP carcass classification grid. However, primary responsibility for brining about this improvement rests with the beef industry itself through better breeding and husbandry practices which, I believe, can best be encouraged through a more effective graded pricing system at meat factory level. While this is essentially a matter for the industry itself, I have asked the beef task force monitoring committee to progress the issue of graded pricing. The recent trial on mechanical classification, which was supported by my Department, and the current moves at EU level to set the standards to be met by mechanical classification systems, should facilitate this process.
On the breeding front, Teagasc has recently undertaken a series of demonstrations around the country to promote better breeding. Teagasc is now also using focused programmes to proactively promote the production of quality beef on a cost effective profitable basis using efficient breeding and feeding systems. In addition, the pooling of resources and expertise in the cattle breeding area to form the recently established Irish Cattle Breeding Federation, ICBF, is providing a real opportunity to make significant progress in developing the breed characteristics of our beef cattle.
One of the main objectives of ICBF is to improve the genetic merit of the national herd, particularly by improving genetic evaluation and information on breeding quality. Breeding objectives are being clearly defined in the context of changing market requirements and farming systems. ICBF is working to identify our top bulls through genetic evaluation and the use of sophisticated IT systems. It will then be for all the relevant interests in the industry to promote the widespread use of those selected bulls. I am satisfied that, if properly implemented, all these measures should assist farmers to produce higher grading beef more efficiently.
I think the Minister will agree only those who produce the highest quality beef will have a profitable future. This applies to the 130,000 farmers classified as cattle or beef farmers in some form. Given this fundamental premise, does the Minister agree there is a problem with the fact that less than 40% of the progeny emanating from the beef suckler cow herd – which is the genesis and basis of the Irish beef industry – is suitable for the high priced European markets? At the National Open Beef Day in Grange – I do not know if the Minister of State was there but his colleague the Minister was – it was stated that 60% of the progeny from the beef suckler cow herd are graded at U, the high grade, whereas less than 20% of the carcasses from the beef suckler cow herd are currently graded U. This is the essence of the problem. Does the Minister agree this is why we are only achieving less than 20% penetration in the high quality competitive markets?
Another problem is the subsidy regime under which the same subsidy is available for a Holstein calf emanating from a primarily dairy herd, 90% of which only grade as O, compared to a continental cross from a Fresian herd. Will the Minister ensure some differential in the subsidy regime in favour of beef farmers producing for the export market or the live market here?
Our beef and dairy production sector is one of the strongest in Europe. The average for Europe is that 66% of the herd produce dairy and 34% beef. The Irish herd breaks down on a 50-50 basis between dairy and single suckling. Single sucklings are the flagship of the beef industry now, particularly on the western seaboard where there are good breeds such as Belgian Blues, Sementhals and Charolais. In comparison, only 12% of the German herd is suckling.
They eat their own beef. We export ours.
We have come a long way in terms of quality in the last four or five years and it is the quality market we are emphasising. I see no problems for the beef industry other than changes in market price. We are getting the breeding and the genetics right. ICBF will do a good job and we are on the right road.
Has the Department given any thought to the formation of producer-processor partnerships, which would ensure quality assured production and marketing of beef, so we can penetrate the high priced niche markets in mainland Europe? Does that idea form any part of the studies being carried out into improving beef quality?
In our last envelope we looked after quality heifer beef. We must encourage all the beef clubs to participate. The less movement there is, the better the quality. The Deputy is well aware of past movements when the dairy herd was the basis of our beef industry. We have since moved away from that and there are many clubs which could act as models. Other organisations in the beef sector, such as feed and silage producers, are getting involved and working progressively. It is important that we have a continuous supply of beef for many of the markets, particularly the retail, which wants beef 365 days a year.
