Vol. 536 No. 3
70 Mr. Daly asked the Minister for Agriculture, Food and Rural Development the pattern of beef prices in the main European Union markets since the BSE scare in October 2000; the relative price position here compared to our main competitors within the European Union; and if he will make a statement on the matter. [14053/01]
There has been a significant fall in beef prices in most member states of the EU as a result of BSE scares on the Continent last October. For example, average EU prices for grade R3 young bulls and cows are now 20% and 22%, respectively, lower than last October. The fall in heifer prices has been more moderate at 12%. These figures, however, mask substantial variations in trends in cattle prices between member states. For example, prices for young bulls in Germany fell by approximately 40% to 60p per lb between October and January but have now recovered to 75p per lb. The pattern in the Netherlands has been somewhat similar, although less extreme. By contrast, steer prices in Ireland are currently 2% lower than last October while heifer prices are more or less unchanged. While Irish cow prices are now 14% lower than last October, the fall in prices has been significantly less than in Germany where prices have fallen by 33%.
These price developments have overturned the traditional price relativities between Irish and German prices. For example, last October Irish steer prices were 86% of the EU average price for young bulls but are now 109% of average EU prices for this category.
Details of these price developments have been forwarded to the Deputy in the form of a tabular statement.
Changes in Prices between October 2000 and April 2001
|
Young Bulls% |
Steers% |
Heifer% |
Cows% |
|
|
Belgium |
14 |
N/A |
11 |
22 |
|
Denmark |
19 |
N/A |
8 |
15 |
|
Germany |
24 |
N/A |
31 |
33 |
|
Spain |
19 |
N/A |
25 |
11 |
|
France |
21 |
+3 |
+3 |
19 |
|
Ireland |
N/A |
2 |
0.1 |
14 |
|
Italy |
20 |
N/A |
14 |
20 |
|
Netherlands |
23 |
N/A |
21 |
21 |
|
Portugal |
+0.8 |
N/A |
N/A |
3 |
|
UK |
5 |
4 |
3 |
N/A |
|
EU |
20 |
1 |
13 |
22 |
The main factor in these favourable trends in Irish cattle prices is the effective operation of the destruct scheme. This scheme, along with increased demand in the UK and the Netherlands because of the disruption to normal cattle slaughterings in these countries, has underpinned the market and has maintained a strong price for our cattle producers.
My Question No. 107 is related to this. Following the forecast he made a few minutes ago for a fall in price from 90p to 92p per pound at this time of year to 72p to 74p in the autumn, does the Minister agree with the experts who predict a very substantial fall in cattle prices through the summer and for the rest of the year? Does he also agree that the changes that will be made to the purchase for destruct scheme at the end of June will have a very serious effect on market prices? Is he taking any measures to try to offset this?
Prices here generally remain remarkably good, largely due to the destruct scheme. This scheme terminates on 1 July and we will have a serious problem, particularly from September onwards when cattle come off the grass. Effectively we have now only the UK and Netherlands markets. With senior officials from the Department, I am actively involved in reopening the various markets in the EU and third countries. France is not exporting to Spain as it remains closed. Italy has just opened up. There is demand in both those countries and we are seeking to get entry to those markets as quickly as possible. The premia on steers will increase in line with the Agenda 2000 which will make up for some of the shortfall but if we are solely dependent on intervention there will be a reduction. However we do not expect that to happen because we hope those essential markets will open up.
Has the Minister considered reintroducing the calf scheme? It does not seem sensible to deal with carcases at 300 kg when calves, especially poor quality Friesian calves, could be taken out of the system.
It is important that the Department in conjunction with Teagasc holds information seminars across the country as a matter of urgency to ensure that farmers are aware that there might be such a significant downturn in the autumn and to warn them not to pay over the odds in forthcoming weeks for cattle. For example, £500 is the maximum for a 500 kg bullock which might get 80p in the autumn or £420 for a similar bullock which might get only 70p in the autumn. Farmers need to be forewarned now, otherwise there will be complaints in the autumn.
Is there any possibility of extending the destruct scheme until the end of the year? This would be a significant boost for the number of cattle waiting to be killed.
I thought the calf processing scheme was a good one but we did not avail of it to the extent other countries did. There is significant resistance to it in Europe by the countries that I mentioned earlier – Germany, Netherlands, Sweden and Italy. There is a very strong animal welfare lobby in those countries and they are totally opposed. At the Council of Ministers, only my French counterpart and I seek to promote the calf processing scheme. It makes great sense from an economic point of view to take out at an early stage animals that are not wanted and for which there is no market rather than developing them fully.
That opposition is more from the Green Party.
Unfortunately it is. I hope that the new Minister in Italy will be more favourably disposed from a rational point of view than the outgoing one. He was entirely negative to our system of farming and our more sensible approach.
He might be more disposed to shoot them quicker.
I have already instructed Teagasc to promote the early finishing of cattle. Both from an economic and an animal disease point of view, there is no sense in having what a predecessor of mine called elephantine cattle when there is no outlet for them at a remunerative price. The premia are very attractive at 12p higher now than in 1989. That will only go some of the way towards the reduction if we do not get the outlets we want for our cattle.
Written Answers follow Adjournment Debate.
