Vol. 519 No. 4
7 Mr. Creed asked the Minister for Agriculture, Food and Rural Development the steps he will take to ensure farmers in Munster receive a comparable price for cattle of similar grade, as is being paid by meat plants elsewhere in the country. [13743/00]
The price paid for cattle in Ireland is determined by market forces and is essentially a matter between purchasers and vendors. In general, prices for similar grade cattle do not vary greatly from one geographic region of the country to another. However, in order to ensure maximum transparency in prices paid by meat factories, I have arranged since early February for the publication on a weekly basis of steer prices paid by named individual meat factories. This will enable producers to make country and industry wide comparisons of the prices being paid for cattle of similar grade and type and minimise price differentials between factories, except where they are justified by market forces.
Average prices paid for steers to date this year are 11-12% higher than for the same period last year. There has also been a significant improvement in the prices paid for heifers.
The Department's report which was covered in the national newspapers indicated that meat plants in the south, particularly in the Cork region, are paying 4p per lb. less than their market competitors elsewhere. That is difficult to explain to farmers in County Cork. With two Ministers from the area we would expect the meat plants in Munster, and particularly in Cork, to lead the way. The Minister will be aware of the huge anger earlier in the year about beef prices. The Department's report indicated a 4p per lb. differential for similar grade cattle. Unless action is taken farmers in the south, in County Cork in particular, may well take to the streets again. Has the Minister raised with the relevant meat plants their failure to pay prices similar to those of other meat plants for similar grade cattle?
Neither the Minister of State nor I fix prices. That is a matter for the industry. The Deputy is correct in saying the price differentials between plants in one area over another are available in the weekly farming news. In the southern part of the country prices have been lower. The reason given for this when the Department followed it up is the greater concentration of the dairy herd there and the Holstein element in the breed. The Department has published the figures. The Government established a three-person group to look into any price fixing. That group is expected to report next month. Also the Department decided to establish a price transparency mechanism based on independent verification. Good progress is being made on that issue in the beef task force monitoring committee under Dr. Tom O'Dwyer. There is a range of measures to give greater transparency in the whole system to ensure people get a fair price and that there is no geographical distortion.
I cannot accept the Minister's explanation that it is due to the Holstein breed because the report clearly indicated that there was a 4p per lb. differential for similar grade cattle. That blows that argument out of the water. In terms of slaughtering overcapacity, what initiatives will the Minister bring forward to facilitate rationalisation so that the overheads the industry is carrying, for which farmers will ultimately pay, can be reduced?
There is a differential and the explanation given is the density of the Holstein breed in the southern part of the country as opposed to any other part. Regarding the prices the Deputy quoted for particular grades—
They are the same grades.
—my recollection is that the prices related mainly to cows and cow beef. In any event, a range of transparency mechanisms is being put in place to ensure that confidence is brought about in the system.
Regarding the Deputy's query about over-capacity, there have been a plethora of investigations and reports on the beef industry over the past decade, the most recent of which was the task force on the beef industry which reported last year. I established a monitoring group to ensure the task force findings were not ignored. This group is chaired by Dr. Tom O'Dwyer, the chairman of Teagasc, and it is making considerable progress in a number of areas. A number of proposals have been put forward in relation to over-capacity.
They are going nowhere.
It is a matter for the industry itself to ensure it is efficient and competitive. From visits to plants, I am aware that one of the big problems, which is mentioned in a later question, is getting trained personnel to work in the beef industry. A number of problems need to be addressed.
Trained personnel are fighting over too many positions.
