Dáil Éireann Debate, Tuesday - 11 February 2014
527. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which producers of bull beef have suffered losses in the current year due to various issues such as market changes or other issues; the extent to which the causes have been fully investigated with a view to resolution; and if he will make a statement on the matter. [6862/14]
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. However, I note that the young bull kill has increased by 50% between week 1 and week 5 of 2014. Higher factory 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.
Delays in young bull slaughtering undoubtedly put pressure on producer profit margins but the cattle trade is cyclical in nature and short-term fluctuations in some cattle prices will not necessarily impact on the long-term strategy for the beef sector as set out in Food Harvest 2020.
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. The current situation 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 constructive 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. I recently 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 utilises cutting-edge science developed by the Teagasc research facility at Moorepark in collaboration with the Irish Cattle Breeding Federation . 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.
