asked the Minister for Agriculture and Fisheries if he is aware of the steep drop in the price of fat pigs; and if he will state if this reduction is of a temporary nature, the reason for it and the prospects for the future.
Ceisteanna—Questions. Oral Answers. - Pig Prices.
3.
The fall in the price of fat pigs from the very high levels they had reached in recent months has been caused by the reduction in bacon prices in the British market. This in turn arose from a surplus supply of bacon in that market. I am advised that the present situation is of a temporary nature and that prices should improve within the next few weeks.
Is the Parliamentary Secretary aware that this is very serious for pig fattening units who fix their bonham prices on a two-months or three-months basis and had them fixed when this fall came? These fattening stations were already only struggling along.
I am aware that it is a rather serious position but it is one that is outside our control because the trouble has arisen due to the decrease in prices in our main market, the British market. However, I am pleased to inform the Deputy that the Pigs and Bacon Commission believe that bacon prices on the British market have reached their lowest level and that in about two weeks time prices will have increased to more economic levels. The position, of course, is not right just at present but it is pleasing to note that it is likely to change and that pig prices are likely to increase.
Would the Parliamentary Secretary ask the Minister to consider doing something of a temporary nature for those stations to take them over this period? This is a terrible setback for those stations, which are barely getting on their feet.
The Minister is quite anxious about this position but, unfortunately, it is beyond his control as the drop in prices is due to the fact that the price obtaining on the British market has reduced considerably during the past few months. However, as I said, this is the darkest period and we expect an improvement, taking present indications into account, in the not-too-distant future.
On what does the Parliamentary Secretary base his expectation of a betterment in the market position in the future? Could I ask the Parliamentary Secretary for an assurance that the relativity between the price of bacon and the price of feed will be maintained at a level that will be profitable for pig feeders?
I am sure the Deputy is aware that neither the Department of Agriculture and Fisheries nor the Minister for Agriculture and Fisheries determines the price of bacon; that price is determined in our export outlets and the price on the British market has dropped quite recently. But the report available to us indicates that there is a likelihood of an increase within the next few weeks. I hope that likelihood will be realised and that there will again be an upward trend in prices.
The Parliamentary Secretary has not said on what he bases that belief.
I am basing it on the report we have had from the Pigs and Bacon Commission and on whatever information departmental sources could obtain so far as the likely price trend on the British market for Irish bacon is concerned.
Deputy Wilson. Deputy Wilson has been seeking to get in for some time past.
Is it not so that the reason for the drop in bacon prices on the British market is the importation into that market of large quantities of Polish bacon and could the Minister make representations to the EEC Commission in Brussels to prevent this dumping of third country bacon within the EEC?
The Minister is doing just that but we cannot, of course, dictate to Britain as to how it should conduct its business. If, as unfortunately is the case, it is purchasing bacon from other sources at present with a consequent reduction of our prices here, I suppose the Minister can make representations at EEC level but I am sure there is nothing further we can do but we are mindful of this.
Deputy Wilson.
The general understanding of our entry into EEC was that our markets would not suffer by the importation into the Community of cheap supplies of bacon or any other commodity from outside the Community. What the Parliamentary Secretary seems to be saying is that, while this is in fact happening, there does not seem to be a lot he can do about it.
My query is much the same as that of Deputy Gibbons. By way of gloss I should like to ask why such a large importation of Polish bacon was permitted at one time and so affect the London market?
The lower level of bacon prices in Britain resulted from over-heavy supplies and price resistance by consumers. The British consumers, like Irish consumers, are anxious about the price of their bacon and that militates against us. Naturally the British Government are anxious.