Dáil Éireann debate -
Tuesday, 26 Jun 2001

Vol. 539 No. 1

Written Answers. - Beef Industry.

Jack Wall

Question:

42 Mr. Wall asked the Minister for Agriculture, Food and Rural Development if he will provide an outline of the position which he took during the Council of Agricultural Ministers meeting on 19 June 2001, in Luxembourg in relation to the European Commission's proposed beef production cuts; and if he will make a statement on the matter. [18795/01]

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

The Commission proposals adopted by the Council last week in Brussels provide for an increase in the intervention ceiling for 2001 and for a number of changes to the beef premium system. The rationale behind the proposals is, first, to provide additional support for the beef market this autumn and, secondly, to bring about a better balance in the EU market in the medium term. These measures are necessary because of the sharp fall in consumption in the EU and the closure of the major third country markets.

My objectives in the negotiations were to secure an increase in the intervention ceiling to cope with the autumn beef surplus, to achieve an orderly transition from the end of the purchase for destruction scheme and to minimise the impact of any reductions in premiums or quotas on Irish producers. I am satisfied that I secured these objectives in the negotiations. The decisions of the Council, particularly the increase of 150,000 tonnes in the intervention ceiling for 2001, will place the beef sector in a much stronger position to deal with the ongoing surplus arising from the sharp fall in consumption as a result of the BSE crisis at the end of last year. I have also secured a commitment from the Commission that the intervention system will be used to stabilise the market in the autumn, which will remove a significant uncertainty in relation to market supports for the coming months.

I succeeded in restricting the proposals on the special beef premium and suckler cow quotas to 2002 and 2003. The proposal on individualisation of the special beef premium quota has been removed and the minimum heifer requirement in the suckler cow premium has been reduced from 20% to 15%, which is close to the normal suckler cow replacement rate. In addition, I secured an exemption from this requirement for producers with less than 14 suckler cows, which will exclude two thirds of Irish producers. Furthermore, the reduction in the stocking density limit from 2.0 to 1.8 lu/ha will be phased in over two years. With regard to the special beef premium quota, I believe that the new quota, which is 3% higher than payments made in recent years, will be adequate for our requirements. In this regard, it should be noted that applications for the special beef premium this year are 15 % lower than in 2000 and male calf registrations are also down.

As far as the overall package is concerned, I am satisfied that any loss in premium income to Irish farmers will be minimal and will be substantially outweighed by the higher level of intervention support I have negotiated as part of the package. In the absence of these arrangements, there was a real prospect that cattle prices in Ireland would collapse in the autumn. In view of the dependence of the Irish beef industry on export markets, it is in the long-term interests of Irish producers, more than any other group of producers, that the EU market is restored to balance as soon as possible. Such an agreement was reached at this particular Council.