Vol. 521 No. 6
13 Mrs. B. Moynihan-Cronin asked the Minister for Agriculture, Food and Rural Development if he can account for the fact that lamb prices dropped from 348kg to 353kg in mid-April 2000 to 260kg to 265kg in mid-May 2000, despite the fact that an increase in the price of retail lamb was one of the main contributors to the rise in food costs in the most recent consumer price index; and if he will make a statement on the matter. [17765/00]
Since the beginning of the year sheepmeat prices in Ireland have been on average 20% above last year's levels, although they have fallen significantly in recent weeks. The fall in prices is due largely to increased competition on the French market arising in particular from an increase in supplies from the UK, New Zealand and Spain. The renationalisation of the French market is also a factor. Prices reported during the past week have indicated that the decline in prices has been arrested.
My Department has raised the issue of New Zealand lamb imports with the European Commission in recent weeks and the Commission has undertaken to remind the New Zealand authorities of their obligations to avoid disturbing the EU market. I also had discussions with the lamb processing sector to emphasise the importance of securing the maximum returns from the market place. Bord Bia recently launched a promotion campaign on the French market to underpin the marketing of Irish lamb there by our exporting firms.
With regard to the contribution of the price of lamb in the consumer price index, the survey period for May included the Easter period when lamb prices were at their highest and ended on 9 May before the fall in producer lamb prices which took place later in the month. The Minister for Enterprise, Trade and Employment has engaged consultants to examine, among other things, the reasons for the differences between producer and consumer prices in the beef sector. The report of the consultants, which is expected shortly, should also be relevant to the lamb sector in large measure.
The processors could pay up to 10p a pound more; they are part of the problem. The Minister should call them in and bring them to book. Does the Minister agree the real problem lies with the current premium scheme, where the 100 day retention period ends on 28 April and a glut comes on to the market? That the retention period is the same for everyone is a contributing factor. Does the Minister agree it would be preferable to have an earlier, more flexible retention period? It should be open to farmers on any date between 1 October and 1 February and the retention period should start 100 days from the date the application is lodged as opposed to the final date of 100 days from the closing date.
This is subject to European Council regulation. Will the Minister go the EU Council of Ministers and argue for a flexible retention period which would do away with a glut coming on to the market?
We are conscious of that and of the need for changes. As the Deputy is aware, this a matter for the EU Council and such things do not go unnoticed by the Government.
When the price of lamb was low, why was the saving not passed on to the consumer? Is there another cartel in operation? What is the Department doing about this? It is outrageous that housewives hear farmers complaining about low prices but when they go to the butchers they are charged high prices.
I cannot say if there is a cartel. The Minister for Enterprise, Trade and Employment is carrying out an investigation into the price of beef and the results, which will be published in the near future, will be of interest to the sheepmeat sector.
The consumer research carried out by Bord Bia indicated that the French had a positive view of Irish lamb. The main thrust of our lamb programme in France for 2000 is to encourage more French people to try Irish lamb. As part of this Bord Bia implemented the first ever nation-wide promotion of Irish lamb in France under the theme L'Agneau de la Saint Jean. The campaign ran for a six week period from 5 May to 1 July and shows Irish lamb at its best in the height of summer with associated events marking the summer solstice in France. The objective is to promote Irish lamb when sufficient volumes are available for a nation-wide campaign and it will position Irish lamb as a natural product through the association with a high profile traditional festival. The building of this foundation will help provide a solid base for Irish lamb in future.
How will that help the Irish consumer who is paying too much for it?
Everything possible is being done to promote and sell Irish lamb and to get a reasonable return for farmers. If the Opposition has a solution, we will gladly look at it.
We will show the solution when we are sitting on the Government benches again.
The Deputies will have to find a judge.
