Vol. 521 No. 6
1 Mr. Connaughton asked the Minister for Agriculture, Food and Rural Development if he has satisfied himself that Irish sheep farmers are getting full market value for lambs at present; the reasons French farmers are getting almost 35p per pound more for their product; the steps Bord Bia is taking in France to overcome blatant renationalisation of the sheep market; and if he will make a statement on the matter. [17720/00]
The marketing of Irish lamb is primarily the responsibility of the industry. The returns to producers ultimately depend on the extent to which the product can compete on our main markets, and in particular on the French market which is by far our largest outlet. The initiatives of Bord Bia to promote Irish product underpin the marketing efforts by Irish companies. I have no reason to believe that Irish producers are not receiving the appropriate prices, given current returns being obtained from the market, but I am firmly of the view that the existing price differential on the French market can be progressively reduced over the coming years to the benefit of the entire industry.
Among the factors related to our ability to compete with French domestic production are price, quality and the range of assurances which can be provided to the purchaser and, ultimately, to the final consumer. While prices available to domestic French lamb producers have traditionally been higher than for imported product due to transport costs and a preference on the part of the French consumer for native lamb, this has been exacerbated in recent times by the renationalisation of the market and the development of locally based quality assurance schemes, including the introduction of identification and traceability systems.
The efforts of Bord Bia in the French market this year have concentrated on promoting Irish lamb using the positive image of the product identified in its research. The initiative is concen trated in mid-summer, at a time when Irish supplies are at their most plentiful. The promotion involves clearly identifying Irish lamb as a high quality product and marking retail packs with a "Lamb from Ireland" label. Participating companies must supply lamb according to certain specifications. There is recent evidence that the promotion initiative has contributed to arresting the seasonal decline in prices to Irish producers which had been taking place since early May. The general trend of prices this year has been relatively satisfactory compared to some recent years.
I thank the Minister of State for his reply. I hope he did not misunderstand me when I asked if producers are getting a return based on current market prices because I am referring to the Irish meat factories. Their actions over the past three or four weeks have been disgraceful. They are in a position to pay at least another 5p or 6p per pound to lamb producers. Will the Minister comment on that aspect? If he accepts the point, what can be done about the factories in terms of advance prices and a record of prices around the world?
Regarding the French market, the Minister of State went to the trouble of accompanying the agriculture group recently to Rungis market. What is happening in France with regard to Irish lamb is a disgrace. The quality of Irish lamb was as good as anything the French had on the day we visited, but there is still a difference of 30p per pound. In my view, Bord Bia's intentions are sincere, but it lacks the financial resources to get across the message to the 60 million French potential consumers that Irish lamb is as good as any other produce. There is a breakdown at that level and I ask the Minister of State to comment on the matter.
I thank the Deputy for his queries. I am not aware of the factory prices over which I have no control. That is a matter for the free market and it relates to supply and demand.
The Minister of State must know what is happening.
Lamb prices this year are 20% higher than the prices last year.
That would not be difficult because some of them were on their knees this time last year.
The price is now steady and slightly higher than at this time last year. It is not all wrong.
Do not talk to me.
Bord Bia has made positive moves with regard to the promotion of Irish lamb in Paris and France. The Deputy was present when we visited the market to see what was happening there. Ireland is an exporter and our dis tance from the market has an effect in terms of freshness of the product. French lamb is on site in its own area. It is tender and fresh and compares more favourably than Irish lamb.
Bord Bia undertook a special promotion this year on an experimental basis, which took place just before we visited the market. The purpose of this was to improve the promotion of Irish lamb to consumers and to help in every way possible. The outcome of that promotion is not yet known but the indications are that it was successful.
Regarding Irish, English and French lamb at the market, I agree with the Deputy that there was little or no difference in the lamb from the three countries. We saw lamb at the various stands, but their people look after the domestic operation and they pay those prices. They are more loyal to their produce. Ireland exports lamb which is surplus to requirements here.
Does the Minister of State accept that £1.10 to £1.13, which is the price of lamb this week, is a reasonable economic return for a sheep farmer? If that is all they are likely to receive, does he agree there will be fewer sheep farmers in the future?
We must move on to Question No. 2.
The Minister has no answer.
