Dáil Éireann Debate, Tuesday - 11 February 2014
108. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine the engagement he has had with beef processors to push for a fair price for beef farmers in view of the current bull beef crisis; and if he will make a statement on the matter. [6312/14]
View answerAggregate cattle supplies at Department-approved meat plants to the end of January 2014 are up almost 10% on the corresponding period in 2012 with strong increases recorded in the steer, heifer and cull cow categories. This higher throughput has led to factories giving preference to certain types of stock that are better suited to the requirements of their retail customers. Prices for prime steers and heifers have remained relatively stable but the young bull trade is challenging at present as age and weight issues continue to affect demand. However, I note that the young bull kill has increased by 50% between week 1 and week 5 of 2014. The Irish beef industry is hugely dependent on exports and the need to ensure that it is producing efficiently for overseas markets cannot be ignored.
Delays in young bull slaughtering undoubtedly put pressure on producer profit margins but neither I nor any Agriculture Minister can interfere in a trade that is cyclical in nature and prone to short-term price fluctuations. I am, of course, entirely sympathetic to those farmers facing difficulties in getting their cattle slaughtered but cattle prices are determined by the interplay of supply and demand and I have no function in relation to commercial transactions between the meat factories and their suppliers. It is the responsibility of the industry – in this instance, processors and farmers working together – to manage the type and volume of cattle being brought to market so that the supply chain operates for the benefit of both parties and does not undermine the viability of bull beef production systems for either winter finishers or suckler farmers. I understand that producer and meat processor representatives have recently engaged in dialogue with a view to resolving the short-term oversupply of young bulls and I would encourage the various bodies to continue this discussion.
