Dinny McGinley
Question:42 Mr. McGinley asked the Minister for Agriculture and Food if he has called a beef summit meeting; and if he will make a statement on the matter. [25701/02]
Other Questions. - Beef Industry.
Tom Hayes
Question:106 Mr. Hayes asked the Minister for Agriculture and Food the position regarding his efforts to establish a beef summit; and if he will make a statement on the matter. [25964/02]
I propose to take Questions Nos. 42 and 106 together.
I hosted a meeting on Monday, 9 December involving the main farming organisations and the chief executives of the main beef export companies to review the state of the beef industry and to consider the best market strategy for the industry in the short to medium term. The main purpose of this initiative was to encourage the beef industry to re-focus its energies on the dynamics of the market at EU and non-EU level. This is particularly important in the context of the evolving policy and trading scenarios that will arise from the mid-term review of Agenda 2000, the imminent enlargement of the EU and the negotiations on the next WTO round. These issues will impact on the beef sector in a variety of ways and it is important that the industry is properly positioned to deal with their consequences.
The meeting included a presentation by Bord Bia, which analysed the core markets for Irish beef and the conditions necessary for success in these markets. There was an exchange of views on the main elements necessary to ensure that the beef sector is well positioned to meet the challenges ahead. There was general agreement that Bord Bia's strategy is acceptable to the industry and that Irish beef must move up the value chain within the EU and gain a greater spread of markets in general. It was also agreed that margins would have to be available for all involved, both at production and processing level, and that cattle and beef quality must be encouraged and rewarded. There was a clear commitment from the beef processing industry to avail of all markets open to Irish beef, especially Egypt where renewed commercial efforts will be made to use the opportunities presented by the lifting of restrictions and the increased refunds which I secured in recent months. I will examine a number of other points identified at the meeting with a view to convening a further meeting early in the new year.
I welcome the fact that a beef summit has been held, albeit late in the year. Can the Minister outline if he intends that such summits will be given a permanent structure? He has indicated that he intends to hold another meeting – will there be a series of such meetings? Does the Minister draw any conclusions from the fact that Mr. Goodman, who is probably one of the biggest players in the industry, did not say anything at the summit? It would be unusual for a man with such a large role in the beef sector to keep his silence. Can the Minister tell me if the Irish Cattle and Sheep Farmers' Association, the ICSA, was part of the summit? If not, are there any plans to invite the organisation to participate in future meetings?
I intend to hold a further meeting early in the new year to continue the progress made at the initial meeting. While the initial courtship phase of the summit may have been a little tentative on the part of some of the players involved, I imagine that they will gain a little courage as we progress. It is important that the key agents in the industry are kept in the same paddock for some time, as no useful purpose is served by endless rows and protests. Ireland is very dependent on exports. I said to the participants in the summit that we have a serious problem – 500,000 tonnes of beef have to be exported and farmers have to make a profit as part of the process. Farmers will not be able to keep going if there is no profit margin and the industry also needs to make money. It is a great disappointment to me that the co-ops that were in the industry until ten years ago have departed the scene, with the exception of Dairygold.
There will definitely be another summit meeting and it is likely that further meetings will result from that. It is vitally important that the realities of the marketplace and the signals sent by consumers are taken on board. There is no use in industry filling the lower end of the market or farmers producing without any regard for consumers. I deal with about seven farming organisations, including the ICSA which was mentioned by Deputy Timmins. I am trying to confine the beef summit to a manageable size so I have, generally speaking, invited only those organisations that are part of the social partnership process. If I did not limit it in this way, organisations like Macra na Feirme, the Irish Co-operative Organisation Society and the National Hill Sheep Farmers' Association would have to be involved. I meet such organisations on a fairly regular basis and I have no difficulties with them, but I wanted the beef summit to be a quite compact affair.
Can I ask the Minister to review the composition of the summit with a view to including one or two more organisations? I appreciate that he does not want the meetings to be unwieldy, but I feel he should consider representations that have been made to him for inclusion by other groups.
Is the Minister worried by the proposals made by the meat factories at the summit? There have been proposals to close down certain meat factories, which would mean that competition would be eliminated straight away. When beef is scarce at certain times of the year, prices increase as a result of competition between the factories. There will be a monopoly if certain factories such as those in south Tipperary are closed. The Minister knows about the factories I am talking about and knows that their closure would mean a great loss to the area. I would like the Minister to comment on the possibility of the elimination of competition, which I fear.
Will the Minister consider taking into account the views of consumers in future meetings of the beef summit? I appreciate that there is a large difference between the price of production and the price paid by the consumer. It is important that we listen to the consumer who, after all, is king.
The Minister said he wants a clear commitment from the industry and farmers. Why did he hold the summit so late in the year? How can he demand such a commitment, given that he has cut Bord Bia's budget by 15%?
Is the importation of meat into Ireland damaging the market here? Does the Minister know who is active in bringing beef to Ireland? The Minister mentioned the Egyptian market – where are the Egyptians getting their meat at present? Are any Irish interests involved in the exportation of meat to Egypt from third countries?
Deputy Hayes asked about rationalisation and I admit there are reports that the industry is interested in streamlining. The industry is in consultation with Enterprise Ireland in that regard and I have no role in the process. The summit I held related to the beef market.
Deputy Upton asked about consumers and it is right that we should take account of them. In the final analysis, food is produced to be consumed and any other rationale is not sustainable. We exported beef on the hoof until the 1980s, when we started to process it for storage and intervention. After encountering troubles with BSE and foot and mouth disease, we are trying to get rid of beef at the lowest end of the market, virtually ignoring the consumer. One of the main spokespersons for consumers in Ireland is not an average consumer and I would like to hear a more rational version of the point of view of the consumer. I had planned to get a better return from Bord Bia and Bord Glas. In reply to Deputy Stanton's question on the importation of meat, we produce more than 600,000 tons of beef, we have to export more than 500,000 tons, we consume about 60,000 tons and we import about 12,000 tons.