Dáil Éireann Debate, Tuesday - 4 March 2014
372. Deputy Brendan Smith asked the Minister for Agriculture, Food and the Marine the measures he will implement to deal with the serious problems facing beef producers due to the reduction in prices and changes to carcass specification; and if he will make a statement on the matter. [10990/14]
View answerMarket conditions in the cattle sector are analysed and examined on an ongoing basis by my Department and Bord Bia. Despite continued slow demand from some key export markets, prices for prime steers and heifers have remained relatively stable even though the combined kill for these categories has increased by 10% in the first eight weeks of 2014 compared to same period in 2013. While the young bull trade is challenging at present as age and weight issues continue to adversely affect demand, the number of young bulls slaughtered at DAFM-approved plants has increased steadily since the start of 2014, from an average of 4,700 head in the first three weeks to an average of 6,600 head over weeks six to eight.
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. The Irish beef industry is highly export dependent and the need to ensure that it is producing efficiently for overseas markets cannot be ignored. Finished cattle prices continue to be impacted by weak demand, particularly for manufacturing beef, in key export markets. 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.
Although I have no function in relation to commercial transactions between the meat factories and their suppliers, I recently met representatives of both sides to discuss the current situation. As a result of that interaction, I am hopeful that the factories, in collaboration with the farming bodies, will be able to resolve the various issues that have lately caused difficulties for some producers. At my request, Meat Industry Ireland (MII) member companies have kept their livestock offices open to deal with farmers with any particular queries or concerns on the marketing of their stock. MII member companies have made available contact details for each their main plants to enable farmers to phone them directly.
The relationship between processors and farmers is an interdependent one. Ultimately, it is the responsibility of both sides working together to manage the type and volume of cattle being brought to market so that the supply chain does not undermine the viability of beef production systems for either winter finishers or suckler farmers. The current situation clearly underlines the need for industry operators to improve communication on market trends and signals throughout the supply chain. An industry-led solution to the current uncertainty is essential to restoring confidence in the sector and I would encourage the various stakeholders to continue their efforts to reach a mutually acceptable outcome.
To support the beef sector I recently announced the operational details of an investment package worth up to €40m to beef farmers in 2014. Among the measures in this investment package are €23m for a 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 Government’s investment is a strong vote of confidence in the suckler beef sector. It exemplifies the smart, green growth initiatives envisioned in the Food Harvest 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.
