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Dáil Éireann díospóireacht -
Wednesday, 4 Nov 1992

Vol. 424 No. 9

Written Answers. - Seasonal Production Problems.

Ivan Yates

Ceist:

106 Mr. Yates asked the Minister for Agriculture and Food the views, if any, he has in relation to Ireland's dependence on seasonality of production; and the proposals, if any, he has to ensure greater continuity of supply in the beef and dairy sectors.

Ivan Yates

Ceist:

151 Mr. Yates asked the Minister for Agriculture and Food the anticipated value of the Slaughter Premium to the Irish beef sector for each of the years from 1993 to 1995; and the method of payment in 1993.

I propose to take Questions Nos. 106 and 151 together.

The problem of seasonal production in both sectors is a complex one which stems from the fact that the primary industry is largely grass based. The solution to the problem lies ultimately within the industry in that it will in the long run depend upon the production and marketing of products capable of providing the returns to the producers sufficient to justify the costs associated with off season production at farm level. It is Government policy to counteract seasonal production in so far as is practicable and the grant assistance provided by the relevant State Agencies specifically encourages projects involving year-round production.

Seasonality of production in the beef sector is a major problem with around half of our production concentrated in three months of the year from September to November. This has effectively hindered us in exploiting markets which would otherwise have been available to us. It was in an effort to counteract this situation that during the negotiations on Common Agricultural Policy reform I sought and secured a corrective mechanism in the form of a deseasonalisation premium (or spring slaughter premium). This premium of £53 per head will be payable on eligible steers slaughtered in the period January to April provided that in the second preceding year steer slaughterings in the September to November period exceeded 40 per cent of annual steer slaughterings. The effect will be to encourage a better distribution of slaughterings throughout the year.

The value of the deseasonalisation premium to the beef sector will, of course, depend on the extent to which slaughterings are switched from autumn to spring. Assuming that the premium leads to a shift in the slaughtering pattern such that 250,000 steers are slaughtered in the January to April period of a given year, then the total value of the premium for that year would be in excess of £13 million.
Draft EC rules governing the detailed implementation of the new premium scheme are at present under consideration in Brussels. When these have been finalised, the arrangements for the payment of the various premiums will be announced.
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