The main objective of the Council of Ministers, and my main priority, was to secure a floor for support for the market going into the autumn. We were in a position where we sought – as we still seek – to have the Egyptian market reopened. Thankfully, consumption is increasing in Europe again. We were informed at a recent meeting that it is now about 8% down on this time last year. That is a considerable improvement.
In some countries consumption had been down by as much as 80%, and 50% in others. It is down on average by 8% to 10%. We are benefiting from the difficulties experienced by the UK and the Netherlands and there is a good market for 20,000 head of finished animals each week in Europe. We still expect to have the Egyptian market reopened. I am increasingly confident. The chief veterinary officer in Cairo is to visit Ireland in about five weeks. That is the first time he has agreed to do that in some considerable time. Some 300,000 tonnes extra in intervention is extremely useful. I hope we will not have to use it, but at least it is a floor.
On the down side of the negotiations, we had to give up 50,000 head of special beef premium rights but we have been below that figure for some time. This year we are down 12%, so we would not be using those rights in any case. There is a 15% replacement requirement for suckler cows, but that would be normal replacement. Stocking density has been reduced from two to 1.8 and there are a couple of years to do that. That is well within the competence of the ordinary Irish farmer. Cattle prices this week are relatively stable and there is a firm demand. That has been brought about by the confidence which is due to a reasonably favourable outcome to the Luxembourg meeting.
