Dáil Éireann Debate, Tuesday - 11 February 2014
526. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which the control of beef prices here compares with the control system in the United States where the advantages appears to be with the producer rather than the processor; and if he will make a statement on the matter. [6861/14]
View answerAs the Deputy will be aware there are no official controls in the European Union for beef prices as this is a commercial matter between beef producers, beef processors and retailers. Neither I nor any agriculture minister in the European Union can interfere in a trade that is cyclical in nature and prone to short-term price fluctuations. Furthermore, successive reforms of the Common Agricultural Policy have involved a shift to more market-oriented policies that move away from price supports and towards direct payments to farmers.
I am aware of the current market situation with regard to beef prices and while prices for prime steers and heifers have remained relatively stable the young bull trade is challenging at present, as age and weight issues continue to affect demand. I have stated that 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. The current situation strongly underlines the need for the industry to improve communication on market trends and signals along the supply chain. 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.
