Dáil Éireann díospóireacht -
Thursday, 1 Jul 1999

Vol. 507 No. 4

Written Answers. - Cattle Prices.

Brendan Smith

Ceist:

36 Mr. B. Smith asked the Minister for Agriculture and Food the extent of the price differentials between the prices paid for cattle in Ireland and the prices paid in the United Kingdom and in continental EU markets; the actions, if any, being taken to narrow those differentials; and if he will make a statement on the matter. [16539/99]

Minister for Agriculture and Food (Mr. Walsh)

The weighted market prices being paid to beef producers for young male animals in each of the EU member states for the week ended 13 June 1999 are set out in the attached table which I propose to circulate in the Official Report.

Young BullsPer Kg (IR£)	SteersPer Kg (IR£)
Ireland	-86.14
France	102.31105.44
UK	-101.63
Belgium	97.85-
Denmark	91.35-
Germany	94.02-
Greece	134.64-
Spain	97.18-
Finland	101.76-
Italy	112.78-
Luxembourg	101.39106.73
Holland	94.13-
Austria	95.26-
Portugal	110.29-
Sweden	95.82-

Average Irish cattle prices are lower than in all other member states. The reason for this difference relates to our distance from the major markets and the associated transport costs, the suitability of the Irish product for EU markets and a preference for domestically produced beef in those markets.

One of the main recommendations of the beef task force, which has now submitted its report to me, is to narrow the gap between EU and Irish prices. This will involve the development of a market led industry based on high quality primary production and increased penetration of high value EU retail markets. The Bord Bia marketing strategy is to increase the level of exports to the EU from 195,000 tonnes in 1998 to 280,000 tonnes by 2002. The introduction of proper price differentials for cattle by the processing industry, combined with the adoption of better breeding practices by producers, should help to improve the quality of Irish cattle and, in that way, narrow the gap between Irish and EU cattle prices.