Vol. 501 No. 1
39 Mr. J. Bruton asked the Minister for Agriculture and Food the reason Irish meat factories do not pay a sufficient price premium for high quality Irish beef suitable to highest retail standards here, in Britain and on the Continent. [1038/99]
Payment for cattle is primarily a matter between meat processors and producers. However, I have expressed disappointment on a number of occasions in the past about the flat pricing system which had been adopted by the meat processors until recently. I understand the main reason for this approach is that following the BSE scares of 1996, the main market for Irish beef is in third countries, where a premium is not placed on high quality beef. The recovery of EU markets will be helped by a greater emphasis on the production of high quality cattle which can come about only when a quality based payment structure is fully implemented.
In view of this, I am pleased that, following discussions between my Department, the meat processors and the IFA last year, most meat processors have moved to a quality based pricing system with premium prices being paid for better quality cattle. It is important that this trend is maintained. The task force on the beef industry, which the Minister set up at the end of last year, is examining what further needs to be done in this regard.
If we want to improve the quality of cattle, it will be done at the grading end of the process. Can the Minister of State clarify if it is possible to introduce regulations to prevent factories from using the flat pricing system?
We have got the agreement of the industry and there is a graded structure in place in our factories based on mechanical assessment versus human assessment. That was referred to earlier in reply to Deputy Penrose's question. I understand it is working well, although people may have doubts about it. There are difficulties, but there is also an appeals system in place.
That is not what I asked. Can the practice of using the flat pricing system at certain times of the year when there is an undersupply of cattle be outlawed?
I am not able to answer the Deputy's question. We have got the agreement of the industry and the farming organisations so it is quasi-compulsory.
Perhaps the Minister could send me a note about it.
I will do that.
A number of years ago EU regulations were introduced which stated that any animal availing of suckler cow premia had to be of a beef breed. This contributed to improving the profile of the Irish beef animal. Does the Minister of State agree the next logical step is to ensure all beef cow animals are in calf to beef breeds as this would help to upgrade the quality of the beef herd? Has he any proposals to intensify the use of artificial insemination in suckler cow herds? Is he aware that some of the instruments necessary to facilitate the economically efficient use of artificial insemination in beef herds are beyond the reach of many farmers as they are now available only on prescription?
The Deputy asked a number of questions which are outside the sphere of this parliamentary question and, therefore, I do not have the information. The quality of beef deteriorated during 1994, 1995 and 1996 when we had high levels of live exports and Holstein exports. Holstein cattle at that time were making more than the prime breeds of continentals, such as Charolais, Limousin and Simmentals. I will circulate the classification results to interested Deputies.
We encourage artificial insemination because it is the best way forward for the industry. Some 46 per cent of the dairy herd is artificially inseminated. I do not know what percentage of the suckler herd is artifically inseminated.
Approximately 10 per cent.
We will have to consider an animal breeding policy if we want to identify with the European markets, particularly the French and Italian markets, which are the most lucrative. We sell 20,000 tonnes of beef to Italy which has a market for 400,000 tonnes. This beef must be of good quality; it must have white fat and pinkish red meat. It must be grain fed to a certain extent to obtain that colour. Pasture fed animals produce meat with a deep red colour. The French market is different. We must concentrate on the French and Italian markets as well as the UK market which is similar to our own.
Is our failure to have a breeding policy not one of the reasons for our alleged failure to penetrate other markets? I agree with the Minister of State about introducing an animal breeding policy. We have failed to differentiate in favour of particular beef progeny thus ensuring the utilisation of specialised beef breeding bulls. I have called for this since I came into the House in 1992. We must differentiate in favour of beef breeds. Is any attention being given to a proposal to remunerate beef producers who produce specialised beef herds rather than the flat rate system, as the Minister called it, of direct payments for all and sundry?
The issue of payment and quality is being examined under the special task force. That goes part of the way to meeting the Deputy's suggestion.
In relation to the grading and what the Minister of State heard last night from beef producers in County Meath and others from north Leinster, will he agree not to pay any premium on the Holstein male animal and immediately ban the licensing of three-quarter bred bulls if he wants to improve the standard of the beef industry and the quality of the finished animal? Will he agree that the amount of top quality beef available has reduced from 50 per cent to 25 per cent on the basis of the figures supplied last night? Will he further agree that is extremely serious in terms of the provision of top of the range beef animals for the European market?
Will the Minister of State comment on a process being carried out by many beef processors whereby water is added and frozen from the time the carcase is weighed by the producer until it is finally retailed? Substantial value is added by the inclusion of water in the carcase which means that the retailer is paying for ice rather than beef.
To deal with the last question first, I will have that matter examined. I am not aware of the practice referred to by the Deputy. Perhaps that is the technology that is available.
We do not have any say in regard to the way payments are made; it is a matter for the European Union and it has decided that payments are made on all male cattle between ten and 22 months. I am delighted Deputy Farrelly asked about three-quarter bred bulls. Who abolished the licensing of bulls?
The Minister of State's constituency colleague.
The Minister of State agreed with him at the time.
I did not.
Never mind what was done in the past. What is the Minister of State prepared to do for the industry now?
We are moving away from the substance of the question.
