Vol. 499 No. 2
89 Mr. B. Smith asked the Minister for Agriculture and Food the measures, if any, he will take to ensure that the benefit of market supports such as export refunds and the intervention scheme are reflected in the price paid to farmers for cattle in view of the widespread concern among the farming community in relation to poor cattle prices; and if he will make a statement on the matter. [2370/99]
I am disappointed with the current level of cattle prices being paid by meat factories, particularly in view of the fact that the more effective intervention support arrangements, which I successfully negotiated with the EU Commission last Autumn, have been extended for the first quarter of 1999.
While these improved market supports have helped to stabilise prices which were in freefall prior to their introduction last October due to the Russian crisis, I believe that there is now scope for higher prices based on current market indicators. The market imbalance between supply and demand on EU markets has been corrected for the present, at least, leading to strong cattle prices on Community markets. The demand for export licence certificates by Irish traders indicates a relatively buoyant third country trade which is being underpinned by an export refund level worth up to 51p/lb carcase weight following the 9p/lb increase last Autumn. Accordingly, I believe that these factors, in addition to the flexible intervention arrangements, should provide for a market price well above current levels.
Furthermore, both my Department and Bord Bia are working together to extend the range of market outlets for Irish beef and cattle exports. I expect exports to Iran to recommence again shortly following my successful visit to that country last autumn.
