Dáil Éireann debate -
Wednesday, 16 May 2001

Vol. 536 No. 3

Written Answers - Beef Industry.

Alan M. Dukes

Question:

107 Mr. Dukes asked the Minister for Agriculture, Food and Rural Development his views on forecasts of substantial price reductions for beef producers over the coming summer and autumn; if he proposes to take counter-measures; and if he will make a statement on the matter. [13897/01]

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

The beef market in Ireland is satisfactory at present and has been since the beginning of the year. The main reason for this is the operation of the purchase for destruction scheme which has underpinned prices for over 30 month cattle. A more recent factor has been the foot and mouth situation in Britain and the Netherlands which has disrupted slaughtering in these countries and given rise to market opportunities for Irish beef.

The purchase for destruction scheme will be replaced from 1 July by a special purchase scheme which will not apply to steers. In this situation, the steer beef market will be supported through intervention and export refunds. I will be seeking to have these supports operate in a manner that will ensure a satisfactory return to our producers. I will be pressing this point strongly at the Council of Agriculture Ministers.

As far as price developments in the second half of the year are concerned, beef prices are due to be reduced by 6.7% from 1 July under the Agenda 2000 agreement. However, premiums have been increased substantially to compensate producers for this reduction in prices. These premiums will be worth an additional £175 million or 20p/lb. to Irish producers this year compared to 1999.

Clearly, the availability of third country markets will have a major influence on price developments in the second half of the year. In view of this, I will be using all of the diplomatic and other resources available to me to secure the re-opening of these third country markets which are currently closed because of BSE or FMD reasons. Egypt is particularly important in view of the size of that market for Irish beef. Senior officials of my Department have recently visited there to brief their counterparts on the range of controls that has been put in place to deal with BSE and foot and mouth disease both at EU and national level. Follow-up action is being taken by my Department in conjunction with the Department of Foreign Affairs and An Bord Bia.

I am also targeting every other potential market opening and will do whatever is required to regain the position of Irish beef and cattle on any of our export markets which are closed to us.