Éamon Ó Cuív
Question:12. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine the progress made to date to resolve the beef crisis; and if he will make a statement on the matter. [48280/14]
View answerBeef Industry
Questions (12)
Written answers
There is no doubt that this past year has been a difficult one for beef farmers as prices have dropped from the high levels of 2013. While I can have no role in negotiating the prices received by farmers, I have made every effort to ensure that we have the appropriate policy support environment in place to secure a sustainable future for all in the beef sector. I brought forward a number of initiatives as part of a €40m investment in the sector in 2014, including the creation of the Beef Genomics Scheme with planned expenditure of €23 million. In the recent budget, I announced a total package of approximately €74 million for the beef sector in 2015, including a provision of €52 million for a proposed Beef Data and Genomics Programme. The budget package included an additional sum of €9 million to fund the Beef Data Programme, €6 million to assist farmer participation in the Beef Quality Assurance Scheme, and a further €1 million for Bord Bia in support of its marketing of Irish products abroad.
As the deputy is aware, I also established a Beef Roundtable forum earlier this year to facilitate discussions on the strategic issues facing the sector and to exchange intelligence on market developments and forecast. The Roundtable has proven to be a valuable resource for improved engagement and communication between stakeholders within the sector. There have been four meetings of the Roundtable to date and I intend to also call a meeting in January to build on recent progress and continue the engagement. The Roundtables have been an excellent opportunity to hear from others such as retailers so that all links in the supply chain better understand the market for Irish beef in Europe.
The most recent discussions last month led to a number of notable outcomes, including the decision to press forward with the development of Producer Organisations to rebalance bargaining power along the supply chain.
Processors also agreed to farmer requests for a moratorium on weight penalties in 2015, no dual base pricing for steers and heifers in individual processing plants, and the introduction of a cost neutral price incentive for all steers and heifers from Quality Assured farms with effect from 1st January. These are just a few of the 23 Outcomes agreed at the meeting of the 12th November.
There should now be no delay in implementing these outcomes. My Department and the relevant State Agencies are working to deliver on various elements of the agreement. It is important that the processors and farm organisations also deliver on their commitments so as to provide a period of stability so that we can move on to tackle the strategic issues facing the sector.
Finally, I should note that beef prices have been increasing in Ireland in recent weeks and months, and have risen by over 7% since the beginning of September. In addition the gap between beef prices here and those in Britain have narrowed by 20 cents a kilo since mid-September. We have also seen very strong trade in live cattle to Northern Ireland in recent weeks. This rising trend is certainly to be welcomed and, together with the reduced input costs in 2014 as identified in recent analysis from Teagasc, should help to improve margins for suckler farmers heading into 2015.
GLAS Eligibility
Questions (13)
Charlie McConalogue
Question:13. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine if he has reviewed the 12-point plan provided to him by the hill farmers group to provide a workable approach for farmers to be able to access the GLAS scheme; his views on adopting the options put forward; and if he will make a statement on the matter. [48275/14]
View answerWritten answers
Following my recent meeting with hill-farmer representatives, I have examined very carefully the 12 point ‘Proposed Implementation Strategy for Commonages in Ireland’, on which much of our discussion centred.
The proposed measures in the new RDP, including GLAS, have been framed in light of the experience of the previous Rural Development programming period and are based on an objective analysis of sectoral needs and priorities and an extensive stakeholder consultation process.
The issues raised in the Proposed Implementation Strategy for Commonages in Ireland’ have been thoroughly examined as part of the ongoing process of RDP design and implementation – for example, the issues relating to stocking levels, appointment of advisors for Commonage Management Plans, and the 50% participation rate have been central to the development of GLAS. The need to ensure a coherent approach to commonage management across Pillar 1 and Pillar 2 has also been an important element in the design of GLAS.
On many of the issues raised by the hill-farmers representatives, I am glad to say that there is much common ground.
My priority now is to continue the current negotiations with the EU Commission in relation to reaching agreement on both GLAS and the RDP as a whole. Securing agreement with the Commission on our RDP proposals will enable GLAS to be opened for applications, and agreement by stakeholders on the way forward in terms of commonages is crucial in this regard. Accordingly, I will continue to liaise with stakeholders as the approval process for GLAS and the RDP develops.
GLAS Eligibility
Questions (14)
Charlie McConalogue
Question:14. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine if he will permit farmers with commonage rights attached to their farms to enter the GLAS scheme without the need for agreement of 50% of farmers grazing commonages; and if he will make a statement on the matter. [48273/14]
View answerWritten answers
Firstly let me say that my priority is putting in place requirements for commonages that will deliver real and measurable environmental benefits and will be acceptable to the European Commission.
The proposed measures in the new RDP, including GLAS, have been framed in light of the experience of the previous Rural Development programming period and are based on an objective analysis of sectoral needs and priorities and an extensive stakeholder consultation process.
The issues raised by the farmer representatives have been thoroughly examined as part of the ongoing process of RDP design and implementation – for example, the issues relating to stocking levels, appointment of advisors for Commonage Management Plans, and the 50% participation rate have been central to the development of GLAS. The need to ensure a coherent approach to commonage management across Pillar 1 and Pillar 2 has also been an important element in the design of GLAS.
Reaching the 50% is an important target but will not be a barrier to entry and if the Advisor believes that it cannot be reached, s/he will advise the Department. Where necessary, the independently chaired Commonage Implementation Committee will play a role in difficult cases and this will be carried out in a timely fashion.
My priority now is to continue the current negotiations with the EU Commission in relation to reaching agreement on both GLAS and the RDP as a whole. Securing agreement with the Commission on our RDP proposals will enable GLAS to be opened for applications, and agreement by stakeholders on the way forward in terms of commonages is crucial in this regard. Accordingly, I will continue to liaise with stakeholders as the approval process for GLAS and the RDP develops.
Beef Industry
Questions (15)
Bernard Durkan
Question:15. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which it has been found possible to stabilise the price of beef to the producer with particular reference to the need to arrive at a situation whereby beef producers here may expect to be paid for their produce in line with adjoining and other European jurisdictions; and if he will make a statement on the matter. [48421/14]
View answerWritten answers
Questions of price are matters to be determined between the purchasers and the sellers of cattle. Prices are determined by supply and demand dynamics and by a range of different factors such as consumer preferences, distance to market, consumer confidence, retail promotions, competition with other meats and the overall macroeconomic situation. It is neither appropriate nor possible for me or any other Minister for Agriculture in the EU to intervene directly on these issues. Indeed, the new Competition and Consumer Protection Commission has emphasised this point again recently in correspondence with members of the Beef RoundTable. Rather than directly influencing prices, my role as Minister for Agriculture is to create a policy support environment that will allow the beef sector to flourish in line with normal market principles.
In this regard, I have brought forward a number of initiatives to help the sector, including the creation of the Beef Genomics Scheme with a budget of €23 million in 2014, payments for which issued to farmers last week. Building on the success of this, I announced an increased provision of €52 million for a new Beef Data and Genomics Programme in 2015, subject to approval by the European Commission. This is just one of a number of measures included in a total package of approximately €74 million for the beef sector in 2015.
We have also had notable successes in securing new market opportunities for Irish beef in recent times, with Japan, Lebanon and Philippines opened in the last 12 months. There has also been significant progress in securing market access to Canada, and I expect that Irish beef will be landing on supermarket shelves in the US next year. In addition, Ireland secured a major breakthrough during my recent trade mission to China and, as a result of this, an inspection team from China has been hosted by my Department over the course of the last week or so. This is an important step in securing access for Irish beef to that market.
I should also note recent agreement on a number of outcomes through the Beef RoundTable process. This agreement addresses a range of the issues raised by farmers in recent months, particularly as regards market signals and product specifications. The RoundTable also endorsed the development of Producer Organisations which should, in my view, go a long way to addressing negotiating power along the supply chain and ensure a fair return to beef producers over the medium to long term.
Finally, it should be noted that prices for R3 steers in Ireland have risen by 26 cents per kilo since the beginning of September. This is an increase of over 7% during this period and Irish prices are now at 101% of the EU15 average price.