Dáil Éireann debate -
Thursday, 18 May 2000

Vol. 519 No. 4

Written Answers. - Slaughtering Capacity.

Bernard J. Durkan

Question:

76 Mr. Durkan asked the Minister for Agriculture, Food and Rural Development the total current slaughter capacity in respect of beef, lamb, and pig; if this is sufficient or excessive; and if he will make a statement on the matter. [13995/00]

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

The most recent comprehensive examination of slaughtering capacity in the beef export plants, which was carried out by McKinsey consultants in 1997, indicated that the industry had an active slaughtering capacity in 1997 of the order of 70,000 cattle per week. This is in excess of the capacity needed to accommodate likely peak slaughterings in the foreseeable future. I share the view expressed by Mc Kinsey and subsequently endorsed by the beef task force and the agri-food 2010 committee that the removal of excess slaughtering capacity would both improve the profitability of the industry through lower unit costs and enhance its ability to compete on the European market.

It should be noted, however, that the agri-food 2010 report recognised that removal of all of excess capacity is unlikely because of seasonal or regional patterns of production, that the realistic scope for Government action is limited and that responsibility for dealing with this issue rests primarily with the shareholders in the industry. Nevertheless, the Government does have a role in this area and, in order to secure a better industry structure, it has decided in the context of the national development plan to give priority to the beef sector at primary slaughtering and processing level. An operational programme to give effect to this decision is under preparation. This initiative, operating in partnership with the indus try itself, should facilitate development and rationalisation in the beef processing industry in a planned way.

As far as the pigmeat sector is concerned, pigmeat slaughtering capacity is currently the subject of a joint North-South consultancy study. The study which will address the issue in some detail has been organised by Enterprise Ireland in co-operation with the INI Industrial Development Board, the Department of Agriculture in Northern Ireland and my own Department. It is expected that the report on this study will be completed by the end of July.

As regards sheepmeat, current estimates are that slaughtering capacity in this sector is approximately 120,000 head per week, which is close to the peak seasonal requirement.