Dáil Éireann díospóireacht -
Tuesday, 28 Nov 2000

Vol. 526 No. 6

Written Answers. - Beef Exports.

David Stanton

Ceist:

217 Mr. Stanton asked the Minister for Agriculture, Food and Rural Development his views on the current situation in the beef trade; the actions he will take as a result; the possible loss to farmers; and if he will make a statement on the matter. [27833/00]

Minister for Agriculture, Food and Rural Development (Mr. Walsh)

The current difficulties in the beef market stem from a serious reduction in consumer confidence in some of our major markets as a result of certain events in France. This, in turn, has led to a sharp drop in consumption in France and some other member states and, accordingly, a contraction of market outlets for Irish beef.

The impact of all these developments can be seen clearly from the fall in cattle prices in recent weeks and, particularly, cow prices. I should emphasise that the high volume markets have remained open and that some practical problems which were encountered in Russia have been resolved.

I believe that the problem needs to be tackled on two fronts. First, we need to restore consumer confidence in beef. Second, we need to ensure that appropriate market support measures are put in place in order to alleviate impact on producers. On the first point, I believe that the decisions taken in the Council and in the standing veterinary committee last week in relation to increased testing of cattle for BSE should make a considerable contribution to the achievement of that objective. In summary, it has been agreed that "at risk" animals over 30 months old will be tested for BSE from 1 January 2001. This testing may be extended to animals over 30 months from 1 July 2001. Further measures are also being taken in relation to the prohibition on the use of fallen animals in animal feed. I strongly welcome these decisions and I believe that they will help, first, to ensure greater consumer protection and, secondly, to restore consumer confidence. Increased testing is essential and it is my firm intention to move ahead with this in advance of the EU timetable. The successful Council meeting was the critical first step in bringing calm and equilibrium back to the situation.

As far as measures are concerned, I made strong representations to Commissioner Fischler in the Council last week for effective measures to support the market to address these problems. I am pleased that the Commissioner has responded swiftly to my request and increased export refunds with effect from last Saturday by 15% in the case of male live cattle and beef and by 130% in the case of female beef. These changes are worth 5p a lb in the case of male beef and 9p a lb in the case of female beef and should significantly improve the competitiveness of our exporters on third country markets.

The Commission has also introduced a private storage scheme for cow beef with effect from 29 November. The scheme, which will run until 2 February 2001, will provide for an EU contribution to the storage of cow beef for a minimum three month period at a rate of 17p a lb, with provision for a further storage period up to three months at a rate of aid of 73p per tonne per day. I have urged the beef processing sector to make maximum use of the scheme so that its full benefits will be available to Irish farmers who wish to sell cows over the coming months.

My Department, our embassies abroad and Bord Bia have been very active in recent weeks in re-assuring our customers in our major markets about the safety of Irish beef, the limited incidence of the disease in Ireland and the controls which have been put in place over the years to ensure maximum protection of the consumer. My Department will continue to give reassurances where ever they are required.

Compensation is provided by the EU to farmers arising from the introduction of the Euro. It is also open to member states to match that amount. I have decided to exercise this option. The compensation package will result in the payment of an additional £14.3 million to Irish beef producers early next year, subject to clearance by the EU Commission.

The measures taken at EU level are very positive developments and should restore confidence in the market at producer and exporter level and help to alleviate the impact of the current difficulties on Irish cattle producers. I will keep the situation under review over the coming weeks.