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Farm Household Incomes

Dáil Éireann Debate, Tuesday - 24 May 2022

Tuesday, 24 May 2022

Questions (734)

Denis Naughten

Question:

734. Deputy Denis Naughten asked the Minister for Agriculture, Food and the Marine the steps that are being taken to ensure that Irish beef farmers receive a price commensurate with that paid to their European Union counterparts; and if he will make a statement on the matter. [26355/22]

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Written answers

As the Deputy knows, the nature of all markets, particularly in export dependent sectors such as Irish beef,  is that prices will fluctuate.  However, our beef is a world-class product and our suckler and beef farmers have a commitment to excellence.

I am acutely aware of the potential pressures being faced by many sectors across the agriculture industry due to the increase in input costs. The Department continuously monitors the market situation for beef and other agrifood commodities, with a view to responding to crisis situations where possible.

The Bord Bia export benchmark, which is an indicator that takes account of prices for cattle at different grades and categories in the main export markets for Irish beef, indicates that the Irish composite price has been lagging behind the EU export benchmark since January and as of 14th May the Irish composite price was 9c/Kg lower than the EU export benchmark. Recent data from my Department for the week beginning 2nd May shows the Irish R3 Steer price at almost 8c/kg above the EU Average price (497c/kg versus 489c/kg for the average EU (14) price).  

I have raised concerns in relation to the impacts of the Russian invasion of Ukraine on agrifood supply chains at the extraordinary informal meeting of European Union Agriculture Ministers held on 2nd March and at successive AgriFish Councils.

At these meetings I underlined the need to closely monitor supply chains to ensure an effective and functioning Single Market, and to be ready to consider any measures that may help to alleviate the difficulties caused.

The Commission has already announced a number of support measures, including the introduction of private storage aid for the pigmeat sector, a new exceptional aid support package making available a fund of €500 million for affected sectors, increased payment advances in 2022 and a new temporary State Aid framework.

In addition to this use of the EU exceptional aid provision, and in acknowledgement of the need to address the multiple impacts of the illegal invasion in Ukraine on food supply chains and food security, significant funding has also been allocated towards Exchequer funded measures including a targeted intervention package for the tillage sector, and the Pig Exceptional Payment Scheme. 

More generally for the beef sector, the Department provides a range of financial aids to support beef farm incomes and to support economic and environmental efficiency. The core support for the beef sector under the outgoing RDP is the €300 Million Beef Data and Genomics Programme. In addition to this support, since 2020, over €260 million of extra supports were made available specifically to the beef sector. These supports are additional to the more general supports that beef farmers can avail of under the current RDP including ANCs.

I am closely monitor the evolving situation and I am actively engaging with the EU Commission, across Government and with industry as this situation unfolds. This is period of considerable challenge for our sector. I have taken a proactive approach, through the various measures I have announced since this crisis started, to support our farm families and their businesses and I will continue to do so.

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