Beef Industry

Dáil Éireann Debate, Tuesday - 15 October 2019

Tuesday, 15 October 2019

Questions (54)

Charlie McConalogue

Question:

54. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine the amount in euro if all applications submitted to the beef emergency aid measure scheme were approved; the euro value for all approved applicants to date; the number of payments that have issued under the 2019 beef environmental efficiency pilot scheme; the total value of all approved applications; the status of the first meeting of the beef market task force and agreed timelines for actions; and if he will make a statement on the matter. [42247/19]

Oral answers (11 contributions)

Deputy Charlie McConalogue

What is the amount of euro involved if all applications submitted to the beef emergency aid measure scheme were approved, and how much finance has been approved? What is the euro value for all approved applications to date, the number of payments that have issued to date under the 2019 beef environmental efficiency pilot scheme and the total value of all approved applications? In addition, what is the status of the first meeting of the beef market task force and the agreed timelines for actions?

Deputy Michael Creed

The objective of the beef exceptional aid measure, BEAM, is to provide temporary exceptional adjustment aid to farmers in the beef sector in Ireland subject to the conditions set out in European Commission Implementing Regulation (EU) 2019/1132. BEAM is funded by a combination of EU aid and Exchequer support provided in light of the difficult circumstances that Irish beef farmers have been facing as a result of market volatility and uncertainty.

Applications for BEAM were accepted from 19 August until 20 September of this year. In total, 34,517 applications were received, with a potential total payment of €78,192,380. Arrangements for the processing of these applications are in place in order to ensure the timely issuing of payments under the measure in December of this year at the latest.

Payments in respect of the beef environmental efficiency pilot, BEEP, are expected to issue in December of this year. The value of all approved applications is just over €19 million.

There have been a series of formal negotiations with beef sector stakeholders since early August, facilitated by my Department and culminating in an agreement being reached between stakeholders on Sunday, 15 September. The full text of that agreement is available on my Department's website. The agreement involves a number of interventions which will provide immediate benefit for beef producers, as well as a range of strategic measures which seek to address structural imbalances in the sector. Beef producers will benefit from an immediate increase in a range of bonuses. This will increase the level of bonus being paid on certain animals, as well as significantly increasing the number of animals which are eligible for a bonus. The cumulative effect is that over 70% of all steer and heifers slaughtered will now be eligible for a bonus on top of the base price paid. A number of actions in the area of market transparency, beef promotion and strengthening the position of the farmer in the supply chain are included in the agreement. These measures set a course towards greater clarity for all stakeholders involved in the beef supply chain, primarily farmers.

My Department is also proactively engaging with several potential beef producer organisations which have the potential to strengthen the bargaining power of beef farmers in the supply chain. Two beef producer organisations have been formally recognised by my Department in recent weeks.

I have established a beef market task force to provide the leadership to develop a sustainable pathway for the future of the beef sector in terms of economic, environmental and social sustainability. The task force will provide a robust implementation structure for commitments entered into in the agreement, with timelines and stakeholder engagement. Furthermore, the beef market task force will offer a suitable platform for strategic engagement with key stakeholders, including retailers and regulatory authorities.

I have appointed Michael Dowling as independent chair of the task force, and its membership includes representatives from my Department, relevant State agencies, farm organisations and the meat industry.

Deputy Charlie McConalogue

I thank the Minister for his response. As he well knows, the reason we have such a crisis in the beef sector, which led to the protests and pickets over the summer, is the fact that for months, and indeed over recent years, farmers have been consistently losing money, and it is simply not sustainable. Coming out of the negotiation process, the agreement was that the beef task force would help address some of the transparency issues in this regard. Alongside that, support from the Department and the European Commission through the Common Agricultural Policy is essential.

Regarding the beef task force, I find it unacceptable that the Minister did not make a clear effort, or more of an effort, to ensure that all injunctions were removed in advance of the start date yesterday. The least we could expect of him today is to call clearly for all remaining injunctions to be removed. While C&D Foods may not be a member of Meat Industry Ireland, its owners certainly are, and the Minister himself indicated he has been talking to them. They are showing bad faith by not removing those injunctions, and the least we can expect is that they do so in order that the beef task force gets up and running.

Regarding the supports farmers need and additional funding through the CAP, the Minister referred in the response he gave us to beef exceptional aid measure, BEAM, and the beef environmental efficiency pilot, BEEP, neither of which has yet seen payments made to farmers. Will he give an assurance to us today that he will go to the European Commission to seek funding to support farmers for the losses they have experienced from May until now, a period during which losses have been heavier than in the previous period, which was covered by the beef exceptional aid measure?

Deputy Michael Creed

I thank the Deputy for his supplementary question. We have been attempting through various schemes to divert the maximum number of supports to farmers in the beef sector whose incomes have been challenged for some time. The Deputy will appreciate that the beef exceptional aid measure, the beef environmental efficiency pilot and the restoration of areas of natural constraint, ANC, payments to €250 million have all been about acknowledging specifically the difficulty the sector is in and providing additional income supports on top of other schemes that support the beef and suckler sectors in particular, including the beef data and genomics programme, the Department's environmental schemes, etc. As far as responding in a timely fashion is concerned, we have been ahead of where Fianna Fáil itself was in terms of initiatives. Fianna Fáil made no request in its budget submission last year for additional measures on top of the existing schemes to support the beef sector. We have also been proactive in looking for new market opportunities. As the Deputy will be aware, the Chinese were here during a difficult period. We have been in contact with the Commission repeatedly and successfully in the context of the €100 million scheme. As late as yesterday we talked to the Commission about the requirement for a timely response from it for enabling regulations to allow us-----

Acting Chairman (Deputy Alan Farrell)

I thank the Minister. He is over time.

Deputy Michael Creed

-----to support the beef sector, which has been identified as one of the most exposed sectors should there be a no-deal Brexit.

Deputy Charlie McConalogue

Talking about measures the Minister is introducing for farmers and debating them in the Dáil does not put bread on any farmer's table. I refer to the two schemes the Minister mentioned as providing tremendous support, in his view, to the beef sector, namely, the beef environmental efficiency pilot, which was announced in last year's budget, and BEAM, which was announced prior to the local elections, for losses experienced from last September until May. Not one euro has yet been paid from either of these two schemes to farmers, yet the Minister stands here and tells us about the great job he is doing in providing financial support to farmers.

First and foremost, it is time for the Minister to step up to the mark and deliver on the commitments made previously and ensure that the funding goes to farmers, considering the massive losses they have experienced over recent months. Second, will the Minister commit to ensuring there is funding to cover losses incurred from May until now, a period during which farmers have lost money hand over fist and in respect of which no support from the Government, which is very badly needed, has been forthcoming?

Deputy Michael Creed

It is unreasonable to expect any body to make payments before 20 October from a scheme that closed on 20 September. The beef exceptional aid measure closed for applications on 20 September. The money will be paid before the end of this year, and that is not unreasonable. We announced last year a beef environmental efficiency pilot, in respect of which payments will also be made this year provided the applicants submit the required data on the weighing of weanlings relative to the weight of the suckler cow.

Deputy Charlie McConalogue

Not one euro has been paid yet.

Deputy Michael Creed

I am telling the Deputy that approximately €100 million, which is additional money, will be paid out cumulatively to the beef sector before the end of this year. Looking across Europe, the beef sector is in considerable difficulty. We are the only member state that has received anything in support of our beef sector. While I appreciate that the market continues to be difficult, and we will continue to make the best possible case in support of our agricultural sector on all occasions, it is not simply a case of knocking on the door and collecting the money. A detailed case must be made. We are now particularly focused in our ask on a no-deal Brexit and the consequences it would have for the beef industry.

Acting Chairman (Deputy Alan Farrell)

Will Deputies and the Minister be conscious of the time that has been allocated to priority questions? We are way over time.