Dáil Éireann Debate, Wednesday - 13 May 2020
930. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which it is expected to stabilise beef processing for producers in such a way as to ensure adequate supply into the future and sufficient profit to the producer; and if he will make a statement on the matter. [4954/20]
View answerAs the Deputy will be aware, levels of beef processing are a commercial matter driven by the market, which is currently experiencing higher levels of volatility than usual due to the ongoing COVID -19 crisis.
I am acutely aware of the issues presented to the agri-food sector in the context of the ongoing COVID-19 crisis. My Department and I are working to ensure that business and services to farmers can continue, keeping food and other processing facilities operational, ensuring that payments and commercial activities that are necessary to protect farm incomes can continue.
There are likely to be significant economic impacts for the agri-food sector, arising from reduced demand in key markets around the world. The loss of high value food service customers is already of significant immediate concern.
I am pleased to say that, following engagement with my European colleagues, I secured the agreement of every single Member State to support a strong joint approach calling for a common European response to a pan European problem. This joint approach calls for rapid deployment of support measures under the Common Market Organisation Regulation, including Private Storage Aid for dairy and other products, and exceptional aid for beef and sheep farmers. It also focuses on flexibility for basic payments and rural development with earlier payment dates, higher rates of advance payment and flexibilities in relation to on-the-spot controls and administrative checks.
Following Ireland’s efforts in leading an agreed EU-27 statement on the need for further supports, the Commission has introduced Aids to Private Storage for Dairy (SMP, Butter, Cheese), Beef and Sheepmeat . It is important that these and all available market supports are deployed.
I am also working with my colleagues in Government to ensure that all businesses, including those in the agri-food sector, get access to suitable supports, and the measures in place are being kept under review.
Working with my colleague Minister Humphreys, I have ensured that up to €180 million in new lending capacity is available for the agri-food sector: 40% of the €250 million COVID-19 Working Capital Scheme will be available for food businesses. Similarly, 40% of an additional €200 million tranche of the Future Growth Loan Scheme will be ring fenced to provide long-term investment support for farmers, fishers and food businesses.
I continue to liaise with the banks on liquidity for the primary sector, and also want to highlight the availability of working capital assistance to farmers and fishers through Microfinance Ireland’s COVID-19 Business Loan. We will continue to keep the finance needs of the whole agri-food sector under review.
I have already provided an additional €85m in supports for the beef sector in Budget 2020, on top of the €20 million provided last year for the BEEP pilot. This includes a €45 million provision for the extension of the BDGP (Beef data and genomics programme) This year’s scheme – the Beef Environmental Efficiency Programme (Sucklers), will deliver a maximum payment of €90 per suckler cow for the first 10 cows, and €80/head thereafter. This extra funding is available to suckler farmers right now. It is a straightforward scheme, which can deliver a significant cash-flow injection, and I would encourage all suckler farmers to apply before the deadline of 15 May.
Conscious of the cash flow pressures on farms at present, I have brought forward €26m in GLAS payments by a month, and these funds have been made already. Balancing payments under the Organic Farming scheme have also been brought forward. I have also increased funding in my Department’s Calf Welfare Investment Scheme from €1.5 million to €4 million, to assist farmers with extra calves. A range of practical flexibilities have been introduced in departmental schemes, including, for example, the extension of completion deadlines for TAMS by 3 months, and the submission for Nitrates records to the end of June. My Department has also worked to ensure that the supply chain continues to function. Critical state services in dairy and meat processing plants continue to function so that farmers have an outlet for their produce, a protocol has been developed for the continued operation of marts, albeit on a limited basis, and the critical certification and other services required to support exports of live animals and products continue to operate.
My Department and agencies will continue to monitor the impacts on the agri-food sector as the situation evolves, and to provide appropriate supports to the sector. Senior officials from my Department remain in constant contact with stakeholders right across the sector to share information on emerging issues and contingency planning, and we will continue to develop appropriate supports as the situation evolves.
