Dáil Éireann Debate, Tuesday - 2 April 2019
391. Deputy Brendan Griffin asked the Minister for Agriculture, Food and the Marine if he will consider matters (details supplied) in relation to beef farmers; and if he will make a statement on the matter. [15315/19]
View answerIn early March, I met with a delegation from the group mentioned in correspondence received from the Deputy. The meeting was constructive and I believe there was good engagement across a range of important issues.
I am very conscious of the role played by the beef sector in sustaining the rural economy and rural communities across Ireland, as reflected in the Dáil debate on this topic last week.
I am deeply committed to fully supporting and developing Ireland’s beef sector. I am strongly of the view that the existing range of supports available to suckler farmers, together with ensuring access to as many markets as possible, both for live animals and beef exports, are appropriate for the continued development of the sector.
I am aware of the current challenges facing beef farmers, with a sustained period of low prices, following on from additional costs last year arising from the unprecedented weather events. However, as Minister, I cannot intervene directly in any commodity price; cattle prices are a matter for the processing industry and the farmers who supply it. Cattle prices are influenced by a variety of factors such as the level of consumer demand, production levels and exchange rate differences. Brexit also presents enormous challenges and ongoing uncertainty for the entire beef sector.
I and my officials have been working very hard for quite some time to sensitise other Member States and the European Commission to the potentially very severe impacts of Brexit on the Irish agri-food and in particular the beef sector, and to the likelihood of specific supports being required in order to deal with these impacts. The institutions of the European Union are very well aware of the likelihood of a significant impact of a disorderly Brexit on Ireland’s economy because this has been part of the discussion from the beginning, and indeed this is explicitly recognised in the Commission’s own communication on contingency planning.
Most recently, I held a bilateral meeting with Commissioner Hogan at the end of January to discuss the potential impact of a disorderly Brexit on the Irish agri-food sector, and on the beef sector in particular. We discussed the unique exposure of the sector to the threat of a disorderly Brexit, and the challenges that it could present. I stressed the need to be ready to deploy a range of measures to mitigate the potential impacts on farmers and the food industry, including through traditional market supports such as intervention and Aids to Private Storage (APS), through exceptional aid under the CAP's Single Common Market Organisation regulation, and through increased flexibility under State Aid regulations. Commissioner Hogan reiterated the EU’s readiness to respond and support Ireland and we will remain in contact on these issues as the situation evolves.
In relation to bonus payments by factories, a Quality Payment System (QPS) providing for differentiated payments in respect of certain grades of cattle at slaughter plants was put in place in 2009. Additional bonus payments, and the conditions required to obtain them, are determined by processors, to incentivise or reward production meeting the specifications of retail customers. They are not conditions determined by law and my Department has no role in their operation.
One of the unique strengths of the agri-food sector has been the shared vision for the sustainable development of the sector in Food Wise 2025. It is crucial that we all continue to work together. I have highlighted the need for stakeholders to recognise their inter-dependency, and to increase the strength of all links in the supply chain, including the development of Beef Producer Organisations.
