Godfrey Timmins
Ceist:16 Mr. Timmins asked the Minister for Agriculture and Food if he will outline the volume of (a) beef and (b) milk products which were taken into intervention in 1991.
Written Answers. - Intervention Levels.
Michael Ferris
Ceist:39 Mr. Ferris asked the Minister for Agriculture and Food if he will outline his plans for improved marketing of beef and beef products to take account of the changes which will follow from the reduction in the levels of intervention and increased compensation for the producer.
Brian O'Shea
Ceist:45 Mr. O'Shea asked the Minister for Agriculture and Food if his attention has been drawn to the European Commission's proposals to reduce the total beef in intervention by some 250,000 tonnes fewer than in 1991; if he will outline the implications of this for the Irish beef industry; if he will further outline his plans to reduce our dependency on the intervention system; and if he will make a statement on the matter.
Joe Sherlock
Ceist:51 Mr. Sherlock asked the Minister for Agriculture and Food the total number and value of cattle sold into intervention so far in 1992; the total value of (a) meat and (b) dairy products now held in intervention; if, in regard to the comments he made after his meeting with EC Commissioner MacSharry on 30 March that Irish beef producers must sharpen up their products and end reliance on intervention, he will outline the steps he intends to take to ensure that this happens; and if he will make a statement on the matter.
I propose to take Questions Nos. 16, 39, 45 and 51 together.
The total number of cattle sold into intervention in Ireland to date in 1992 was over 202,000 head valued at approximately £165 million.
As at 30 June 1992 the total book value of dairy product held in intervention was £97.5 million while at the end of May 1992 the book value of beef held in intervention was £158 million. During 1991 some 265,000 tonnes of beef and 148,000 tonnes of dairy products were taken into intervention in Ireland.
There has been no intake of skimmed milk powder into intervention since July 1991 and butter intake has been minimal, 3,000 tonnes since January 1992.
There are no proposals from the European Commission to reduce intervention beef stocks by 250,000 tonnes less than in 1991. However, during the course of the recent Common Agricultural Policy reform negotiations, it was agreed that a ceiling on beef intervention purchases be fixed at a level of 750,000 tonnes in 1993, gradually reducing to 350,000 tonnes in 1997.
Provided Irish beef processors use the five year period over which these reductions will be effected to increase their penetration of EC markets for change, there need not be any adverse implications for the beef industry.
The special spring slaughter premium for male cattle which I sought and obtained during the Common Agricultural Policy reform negotiations should, through its beneficial effect on the seasonal variations in Irish beef production, contribute significantly to the necessary switch from intervention sales to commercial sales. Also State and FEOGA grants will be used to assist only those projects in the beef sector which are aimed at and are capable of increasing commercial sales.
In anticipation of the changes resulting from Common Agricultural Policy reform, and with a view to our beef sector becoming less dependent on EC supports and adopting a more market orientated approach, the Government provided for a doubling of the CBF grant-in-aid last year to £1.5 million. This level of aid has been repeated in the current year. Meat producers in turn agreed to increase their contribution to match the increased commitment from the Government and this together with other receipts including EC aid has brought the total CBF budget to a projected £8.1 million for 1992 compared to some £5.05 million in 1990. This increased funding has enabled CBF to launch a quality assurance scheme for Irish beef and to undertake a major promotional campaign in Europe which has targeted the premium end of the market. The campaign includes promotion of Irish meat and meat products in key retail outlets and at international food fairs in Germany, Italy, Spain, France and the UK.
A modest but welcome feature of the Common Agricultural Policy reform package is a provision for part financing by the Community of beef promotion and marketing measures undertaken in Member States.
The framework has now been put in place on which the industry can plan and develop its long term strategy. A combination of adequate EC market support arrangements, generous compensatory premia for producers and a greatly enhanced promotion effort should lead to a more satisfactory and secure position all round for the entire beef industry. I am confident that all concerned will respond positively to the new scenario and take full advantage of the opportunity which is being offered for the successful development of this important sector.