Aggregate 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.
One of the main difficulties in marketing young bulls over 16 months at age is that these animals are outside the specifications preferred by the UK market. This is a major disadvantage at present because the UK market has effectively become the highest-priced beef market in the EU.
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. I would encourage the various bodies to continue their discussions.
With regard to beef imports, CSO data shows that total volume inflows for the period January to November 2013 amounted to 27,000t compared to 42,000t in 2012 and 47,000t in 2011. Most beef imports are sourced from the UK either in prepared form or, more commonly, in carcase form for further processing. The fresh beef market in Ireland is almost entirely of domestic origin. As a small nation with an open economy producing six times more beef than is required for domestic consumption, and operating within a single market, it is clearly in Ireland’s best interests to facilitate international trade.
In relation to Pillar II measures, my Department recently published a consultation document outlining proposed measures for inclusion in the new Rural Development Programme (RDP) and comments from interested stakeholders are invited. Under the proposed new RDP for the period 2014–2020, a broad range of support measures for suckler farmers is under consideration including a Beef Data and Genomics Programme (BDGP). This programme has a proposed budget of up to €52m per annum and participating framers would receive €80 for each eligible calf. It should also be noted that suckler framers would likely be some of the main beneficiaries under other schemes proposed for the RDP including the Agri-Environment and Climate Change Measure, Areas of Natural Constraints (formerly Less Favoured Areas), on-farm capital investment measures.
The draft programme is now available on my Department’s website and written submissions are being sought by the 19 February 2014. This consultation process is a key step in designing a draft RDP for submission to the EU Commission for its approval.
