Dáil Éireann díospóireacht -
Tuesday, 10 May 1994

Vol. 442 No. 5

Ceisteanna—Questions. Oral Answers. - Steer Slaughterings.

Liz McManus

Ceist:

23 Ms McManus asked the Minister for Agriculture, Food and Forestry if his attention has been drawn to figures compiled by CBF which show that beef factory export steer kills for the first ten weeks of 1994 were down 32 per cent on the same period in 1993; in view of comments from the Chief Executives of Kerry Co-op that some plants may have to import British beef to fill Irish contracts, the steps, if any, he intends to take to ensure a guaranteed supply of beef for the plants; and if he will make a statement on the matter.

Mr. J. Walsh

I am aware that steer slaughterings in the first ten weeks of this year were substantially lower than in the corresponding period in 1993. However, steer slaughterings have recovered well and were 5 per cent higher in April this year than in the same months in 1993. Slaughterings of cows and heifers have been at slightly higher levels so far this year than in 1993 and total cattle slaughterings for the first four months of the year were less than 6 per cent below the corresponding figure for 1993.

The Deputy will be aware that EU law does not permit me to adopt any measures to ensure a guaranteed supply of cattle to beef plants. However, the recent reduction in export refunds on live cattle should enable the meat plants to compete more effectively for the available cattle.

Ms McManus

Does the Minister agree with the managing director of the Kerry Group that European Union and Government policy on live exports is destroying the Irish beef industry? Will he also agree that doubling live exports — a major problem which has not been resolved — has been disastrous in terms of the provision of cattle for meat processing plants? Having regard to its effect and the risk it poses to the jobs of workers in meat plants, will the Minister pursue this matter at European Union level? The increase in live exports has been identified as a major factor in undermining the meat processing industry, at a time when the Minister is proposing to set up An Bord Bia. Will the Minister address this problem instead of pursuing the open-ended arrangement that somehow it will be all right on the night?

Mr. J. Walsh

I do not know what the phrase "it will be all right on the night" means in this instance. A total of 370,000 head of live cattle approximately 1,000 per day were exported last year which caused some difficulty for meat plants. I believe this difficulty has been resolved by the levelling of the playing pitch in terms of export refunds and the ending of the slaughter premium arrangement. It is clear Government policy that there should be competition in the cattle trade. There should be some live exports and the processing industry in particular should be given an opportunity to increase added value, thus supporting jobs and ensuring a return for the major investment in modernising the processing industry during the past four or five years. The processing industry is state of the art and I intend to ensure that there is an adequate level of supply to meat plants.

Live shippers have been able to get better prices in some markets than the meat trade, and it would, therefore, be equally unfair to penalise good marketers in an effort to help companies or organisations which are not as good at getting export markets. I am seriously considering this matter to ensure that we have a viable and dynamic processing industry in future.

Mrs. Doyle

Does the Minister consider that the present retention period rules contribute to the problem of marketing cattle and our meat factories obtaining adequate supplies, in addition to the fact that the payment last year of the winter beef slaughter premium was so delayed many farmers opted for disposal of their cattle this year? Those are two additional factors on which I would like the Minister to comment.

Mr. J. Walsh

The two-month retention period was a problem in ensuring continuity of supply to meat plants. This year we intend to have more regular application periods to overcome that problem. Last year the problem was caused in the main by buoyant markets for the live trade when live shippers sought and obtained very good markets, with very good returns to farmers. We are insisting on jobs within the processing industry, along with added value. The good work being done by CBF in getting major markets on the European mainland——

Mrs. Doyle

The Minister is about to abolish CBF this afternoon. We will not have the CBF by 6 o'clock. He is abolishing that board.

An Leas-Cheann Comhairle

That concludes ordinary questions for today.