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Beef Industry

Dáil Éireann Debate, Tuesday - 15 October 2019

Tuesday, 15 October 2019

Questions (81)

Charlie McConalogue

Question:

81. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine when the first meeting of the beef market task force will take place; the timeline for implementation of all the actions agreed by farming organisations and the meat industry at talks that concluded on 15 September 2019; if he formally submitted an application to the EU Commission for market disturbance funding for beef farmers under Article 219 of the CAP in view of the fact that prices have fallen further since May 2019; and if he will make a statement on the matter. [41970/19]

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Written answers

There have been a series of formal negotiations with beef sector stakeholders, facilitated by my Department, since early August, culminating in an agreement being reached between stakeholders on Sunday 15 September.

The full text of the Agreement is available on my Department's website: https://www.agriculture.gov.ie/media/migration/farmingsectors/beef/Agreement15September170919.pdf

I have established a Beef Market Taskforce 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 Taskforce will provide a robust implementation structure for commitments entered into in the Agreement, with timelines and stakeholder engagement. Furthermore, the Beef Market Taskforce 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 Taskforce, and its membership includes representatives from my Department, relevant State agencies, farm organisations and the meat industry. The Beef Taskforce scheduled for yesterday, 14 October, was adjourned, as members of the Taskforce were prevented from attending the meeting. It is in the interests of everyone involved in the beef industry that the work of the Taskforce goes ahead. The Taskforce’s remit is to monitor the implementation of the actions arising from the agreement reached on 15 September and offers the most viable platform for strategic engagement with key stakeholders. It was a great pity that farm representatives were not in a position to air the legitimate concerns of farmers at the Taskforce.

I have had ongoing discussions with Commissioner Hogan and Commission officials in regard to the significant beef market disturbance which has already occurred, and particularly in relation to the threat posed to the beef sector in Ireland, as well as in other Member States, by a No-Deal Brexit. I raised these issues again during a bilateral yesterday en marge of the Agriculture Council in Luxembourg.

The Irish Government has provided significant financial support to the beef sector over the past number of years through national funding and EU funding under the €4 billion Rural Development Programme (RDP) 2014 - 2020.

In 2019, a further €20 million of exchequer funding was made available through the Beef Environmental Efficiency Programme, to encourage farmers to measure the weaning efficiency of their suckler cows.

And, of course, the Beef Exceptional Aid Measure (BEAM) has provided temporary exceptional adjustment aid to farmers in the beef sector in Ireland subject to the conditions set out in EU 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 the market volatility and uncertainty. Over 34,500 farmers had applied for BEAM at its closing date of 20 September, representing potential commitments of almost €78 million.

In Budget 2020, I have provided almost €85 million in targeted schemes to support sustainable beef farming. This includes almost €45 million for the BDGP, and a further €40 million for targeted supports. I intend to consult with stakeholders as to the use of these funds.

In addition, in the event of a No-Deal Brexit, my colleague the Minister for Public Expenditure and Reform confirmed in Budget 2020 that a Brexit contingency fund of €650 million will be available to support our most vulnerable sectors, to be activated in tranches as the full impacts emerge. €110 million will be made available through my Department in the first tranche, of which €85 million will be provided in immediate supports for beef farmers. This will, of course, be supplemented by any exceptional aid provided from the EU under the CMO regulation.

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