Written Answers. - Beef Production.
Willie Penrose
Ceist:
75
Mr. Penrose
asked the
Minister for Agriculture, Food and Rural Development
the steps he will take to alleviate the hardship for beef producers arising from the slump in cattle prices due to the BSE crisis in France and other European countries; and if he will make a statement on the matter.
[28431/00]
Willie Penrose
Ceist:
133
Mr. Penrose
asked the
Minister for Agriculture, Food and Rural Development
the steps he will take to alleviate the hardship for beef producers arising form the slump in cattle prices due to the BSE crisis in France and other European countries; and if he will make a statement on the matter.
[28670/00]
David Stanton
Ceist:
134
Mr. Stanton
asked the
Minister for Agriculture, Food and Rural Development
the action he will take to support farmers in view of losses due to difficulties in beef trade; and if he will make a statement on the matter.
[28713/00]
Bernard J. Durkan
Ceist:
192
Mr. Durkan
asked the
Minister for Agriculture, Food and Rural Development
if his attention has been drawn to the recent sharp drop in cattle prices; his plans or proposals to address the issue; and if he will make a statement on the matter.
[28661/00]
I propose to take Questions Nos. 75, 133, 134 and 192 together.
I am very aware of the difficulties being experienced by beef producers at present. These difficulties stem from a serious reduction in consumer confidence in some of our major continental markets leading to a sharp drop in consumption. The uncertainty in relation to third country markets has exacerbated the situation. The impact of all these developments can be seen from the fall in cattle prices in recent weeks, and particularly, cow prices.
I have been tackling the problem on three fronts. First, I have endeavoured, along with my colleagues in the Agriculture Council, to restore consumer confidence in beef. Second, I have attempted to ensure that appropriate market measures are put in place in order to alleviate the impact on producers. Third, I have endeavoured to ensure that all markets remain open to Irish beef.
On the first point, I have endeavoured to secure the adoption of an EU wide approach to the BSE problem with a view to putting in place effective control measures which will prevent the spread of the disease and provide maximum protection to the consumer. I believe that the decisions taken in the Council yesterday should make a considerable contribution to the achievement of these objectives. The measures adopted are: a temporary ban on feeding of meat and bone meal to all farm animals; animals over 30 months can go into the food chain only if tested; a purchase for destruction scheme to remove from the food chain all cattle over 30 months which have not yet been tested for BSE. I welcome these decisions and I believe that, combined with the decision taken last month to require all cattle over 12 months of age to be tested for BSE with effect from 1 July 2001, they will provide an improved framework for protecting human health and in restoring confidence in beef.
As far as market support measures are concerned, I welcome the conclusion of the Council that it is essential to introduce intervention and I am confident that an effective and meaningful intervention arrangement which can provide the basis for a resumption of orderly marketing will be put in place at the meeting of the beef management committee meeting on 12 December 2000. The "purchase for destruction" scheme should also make a substantial contribution to improving market balance in the sector. The Commission has also given a commitment to the Council to examine the consequence of the current crisis for producers and to report back to the Council, with any appropriate proposals. The Council has undertaken to act on any such proposals as a matter of urgency. The Commission has also agreed to increase the advances of the beef premiums from 60% to 80% in order to ease the financial pressure on beef producers.
The Commission has already increased export refunds and introduced a private storage aid scheme for cows in order to provide additional support to the market. Export refunds have been increased 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/lb in the case of male beef and 9p/lb in the case of female beef and should significantly improve the competitiveness of our exporters on third country markets. A private storage scheme for cow beef has been introduced with effect from 27 November and will run until 2 February 2001. 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.
With regard to export markets, 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. The Government has, at the highest level, made every effort to ensure that the Egyptian market remains open.
In this context I cannot overemphasise the importance of the Egyptian market for Irish beef. For this reason, the Government takes very seriously the recent action by Egypt to suspend the issue of import licences to Western European countries including Ireland. The reason they have taken this decision is to allow them take account of the developments within the EU related to BSE and to assess the measures and decisions being taken to deal with the situation. The developments I refer to relate to the situation in certain other member states and not to Ireland's situation.
The Government has taken immediate action to deal with the situation in Egypt. To begin with, our ambassador in Cairo has been in contact with the authorities there and has outlined the facts of our situation in relation to BSE. Senior officials of my Department travelled to Egypt at the weekend for meetings with senior Egyptian officials. Ireland has an extremely positive case to make on BSE and these officials ensured that the Egyptian authorities were made fully aware of the controls we have in place.
I have spoken to the Deputy Prime Minister and Agriculture Minister, Dr. Wali, and have impressed upon him the importance of the market to Ireland, the quality and safety controls in place in Ireland and the guarantees which can be given to consumers of Irish beef. I have also arranged to meet with him to brief him on the range of measures which will be put in place within the EU to deal with BSE which, I believe, help restore consumer confidence and eliminate much of the confusion which has arisen out of the recent BSE scares. Furthermore, the Taoiseach has raised the matter with President Mubarak and has impressed upon him the full facts about Irish beef exports and has asked him to avoid taking definitive action which may damage this trade.
I think that the measures which have been taken at EU and national level are very positive developments and will, I hope, 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.
