Dáil Éireann Debate, Thursday - 11 October 2018
12. Deputy Eamon Scanlon asked the Minister for Agriculture, Food and the Marine the steps he is taking to protect the interests of beef farmers in view of understandable frustration at poor prices and the ongoing systemic flaws in the relationship between farmers and factories; and if he will make a statement on the matter. [41263/18]
View answerAs the Minister will be aware, most of the farming organisations have pulled out of the beef forum body that was set up a number of years ago to ensure a fair price for beef. I would like to know the steps the Minister will take in the interests of beef farmers in view of the understandable frustration at poor prices and the ongoing systematic flaws in the relationship between farmers and meat factories.
As I indicated earlier, in accordance with competition law, neither I nor my Department has any role in determining market prices for any commodity, nor can I intervene in this process.
I am conscious that this has been a difficult year for the sector in terms of weather and the range of challenges associated with it. We have to acknowledge that input costs at farm level will be unexpectedly high this year as a result of fodder shortages.
At the recent meeting of the beef round table on 3 October, I highlighted the need for stakeholders to recognise their inter-dependency. I urged processors to engage positively with their farmer suppliers to build the sustainability of the sector as a whole and to ensure a reasonable return for the farmers on whom the sector relies for its development. It is essential that the position of the primary producer in the supply chain be improved if the industry wishes to have a sustainable future.
The beef round table also included discussions on the potential for producer organisations and the development of new technologies as ways of adding value along the whole supply chain through increased engagement in the bioeconomy. These discussions were aimed at highlighting available tools to build resilience in the sector.
I noted that previously at the beef round table in 2015 a commitment was made to legislate for the recognition of POs in the beef sector. This initiative was supported by all sectoral stakeholders and in February of 2016 a statutory instrument was signed into law to give a legal basis for my Department to maintain a register of recognised POs in the beef sector. The recognition of POs will encourage primary beef producers to form producer organisations and allow farmers to engage collectively with processors. The ultimate aim is to ensure the viable development of production by strengthening farmers' bargaining power with downstream operators.
At the round table on 3 October, I also asked Bord Bia to conduct a detailed examination of market dynamics, with the co-operation of the industry, taking into account sales of particular cuts into particular segments of the market in order to improve price transparency.
One of the unique strengths of the agrifood sector is our shared vision for the sustainable development of the sector in Food Wise 2025. I hope that this positive engagement will continue.
Additional information not given on the floor of the House
More generally, in the beef sector, I was pleased to secure in the recent budget €20 million for a new pilot scheme targeted at suckler farmers and specifically aimed at further improving the carbon efficiency of beef production. The pilot will build on existing work in this area and inform the development of future policy direction.
My Department is examining all appropriate measures to support the different agrifood sectors, including the suckler sector in preparation for the next iteration of CAP. I will continue to argue for as strong a CAP budget as possible, post-2020. In particular, I am committed to ensuring that suckler farmers continue to receive strong support in the next CAP. My view is that such payments should support and encourage suckler farmers to make the best decisions possible to improve the profitability, and the economic and environmental efficiency, of their farming system.
It is crucial that some body is set up to oversee what is happening between farmers and meat factories because there is a situation in this country where farmers have bought expensive store cattle and some of them are not leaving any profit whatsoever. When one considers that €3.70 per kg is what is being paid in Ireland for good quality cattle, in England farmers are getting €4.40 per kg for their cattle. There is something badly wrong. Most of these Irish cattle are going into England anyway. I cannot understand it. Until the factories are brought into line - I understand fully that the Minister cannot interfere with market prices - farmers will not be treated fairly, as their counterparts in England are, by the meat plants.
The Minister has one minute. I am anxious to take another question.
I share the same ambition as Deputy Scanlon. I appreciate that the Deputy comes from a constituency where the suckler beef sector is a strong component of delivering high quality weanling cattle, perhaps to the plains of Kildare and Meath, for further onward fattening. It is a critical part of that rural economy. Both of us share that ambition that they would have a return for that endeavour. That is why, while direct prices with meat plants, in the budget we introduced this pilot initiative in the area of environmental efficiency which will deliver a €40 payment per weanling. My ambition is to make that scheme as simple as possible and as cost neutral as possible for the farmer and deliver the maximum amount of that into the farmer's pocket.
Also, as Deputy Scanlon will be aware, and as has been alluded to by Deputy McLoughlin in Question No. 10, ANC payments are another way of delivering direct income support into that sector where they are operating under that designation. Skewing that payment in favour of those who are on the higher levels of disadvantage delivered significant income opportunities last year and that will continue this year.
The ambition of the beef data and genomics project is to deliver the highest genetic merit beef herd that we can and, in so doing, maximise the profitability of the sector. We are making considerable progress in that regard.
