Dáil Éireann Debate, Tuesday - 11 February 2014
498. Deputy Timmy Dooley asked the Minister for Agriculture, Food and the Marine the actions he has taken to help safeguard livestock farmers against a collapse in bull beef prices by 30 cent to 50 cent per kilogram or €100 to €150 per head since mid-December; if he will call in the beef processing industry and demand that it restore price and competition to bull beef prices; and if he will make a statement on the matter. [6472/14]
View answerMarket conditions in the cattle sector are monitored on an ongoing basis by my Department and I am aware of reports that some sellers are experiencing difficulties in trading and moving stock particularly those animals that do not qualify for the industry's Quality Payment System. 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.
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 is partly a result of cattle becoming fit for slaughter earlier than in previous years leading to a situation whereby factories are giving preference to certain types of stock that are better suited to the trade specifications demanded by their retail customers.
Cattle prices are determined by the dynamics of supply and demand in the marketplace and I have no function in relation to commercial transactions between the meat factories and their suppliers. Rather, 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 such 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 discussions with a view to resolving the short-term oversupply of young bulls. An industry-led solution to clear the backlog of bull beef is essential to restoring confidence in the sector and will hopefully resolve the current difficulties for farmers.
I fully recognise the importance of maintaining confidence in a sector that has benefitted from historically high price levels in recent years. Earlier this week, I announced the operational details of an investment package worth up to €40m to beef farmers in 2014. This package will include a €23m for Beef Genomics Scheme, €10m for the Beef Data Programme, €5m for the Beef Technology Adoption Programme and €2m in residual payments under the Suckler Cow Welfare Scheme.
The Genomic Scheme is a particularly important innovation that it utilises cutting-edge science developed by the Teagasc research facility at Moorepark in collaboration with the Irish Cattle Breeding Federation (ICBF). The use of genomics in dairy animals has helped transform cattle breeding in that sector as well as delivering tangible gains for efficient farmers. Introducing this technology for the suckler sector will help to improve the genetic quality of the national beef herd and to increase productivity and profitability at farm level.
The scheme will provide a payment of €40 per calf to participants in return for genotyping a selection of their animals specified by ICBF. Genomic selection involves taking an animal's DNA sample and sending it to a laboratory to assess its performance traits. Farmers can use this information predicting the genetic merit of their stock to inform their breeding and selection decisions. Application forms for the scheme will issue to farmers over the coming weeks.
The Government's investment is a strong vote of confidence in the suckler beef sector. It exemplifies the smart, green growth initiatives envisioned in the 2020 strategy and, coupled with additional support measures under the new Rural Development Programme, will underpin the development of a sustainable beef sector with long-term growth potential.
