Billy Timmins
Ceist:1 Mr. Timmins asked the Minister for Agriculture and Food her plans to assist in the development of the beef industry; and if she will make a statement on the matter. [24693/04]
Priority Questions.
Beef Industry.
The focus of the beef industry has been to broaden and expand its market reach at EU retail level, shifting its orientation away from international commodity markets and into the higher priced internal EU marketplace. It has also eliminated its dependence on export measures such as intervention. This contrasts sharply with the situation that prevailed throughout the 1990s when the industry exported 50% of its products into non-EU markets. Last year, this share dropped to just 17% while the EU share increased proportionately. Non-EU markets continue to be important outlets for Irish beef and the maintenance of an appropriate export refund policy, which I keep under close review, is a key ingredient in the promotion of beef in third countries. I will continue to press hard for the re-opening of traditional third country markets and I was especially pleased to announce the re-opening of the Algerian market last week.
Increased sales into continental Europe coincided with the emergence of an EU market deficit in beef for the first time in 25 years, together with falling production levels aligned with a strong recovery in consumption. Ireland is now well placed to consolidate this position and to move further up the value chain, having demonstrated the quality and safety of Irish beef through its broad appeal to EU customers. A targeted approach based on quality production represents the best and most profitable way forward for the Irish industry. This is particularly the case in the aftermath of decoupling when the market will be the sole determinant of the nature and scale of output from the sector. In such a context, there will be a need for even greater emphasis on good breeding policies, payment related to quality, sophisticated and integrated supply and purchasing systems.
Ireland will shortly be among the first EU countries to classify beef carcasses by mechanical means. This will not only enhance the producer processor supply chain but will also provide wider benefits to the industry as Ireland consolidates its position as a supplier of top quality beef to consumer markets of the European Union. The installation of mechanical grading machines is supported by a grant scheme from my Department.
I thank the Minister for her reply and wish her well in her new portfolio. I am sure she will make a competent success of it. She has had luck on her side since she entered politics and is fortunate now that I am moving on and will not be the Fine Gael spokesperson on agriculture. I also wish the Ministers of State, Deputy Browne and Deputy Brendan Smith, well. The Minister of State, Deputy Browne, has experience and has done much good work, while the promotion of the Minister of State, Deputy Brendan Smith, promotion was long overdue.
I remember the first occasion I took part in questions to the Minister for Agriculture and Food. The media spokesman for one of the farmers' representative groups said then that he knew about modulation and decoupling and held the line firmly against them. I was therefore a little surprised in recent months by the welcome for them by farm organisations and farmers given that they were so trenchant in their opposition to them for so long. Perhaps there is a lesson to be learned in that.
I am delighted the Minister emphasised a quality product. Does she agree that we cannot emphasise enough the importance of a quality product and a market for it? Does she agree it is important that when matters are evened out, we review modulation funding and consider the use of some of that money to encourage quality production? We should also consider the expansion of Bord Bia to market our produce abroad, especially to the higher echelons of the EU market.
Farmers are tired of the annual difficulty with the factories every autumn. The factories give out one story and the farmers another. Will the Minister consider a beef summit — one may have been set up by a previous Minister and still exist — that will bring the factories and the farmer together? To paraphrase the old song, they should be friends. It is to their benefit to work together. Farmers will not produce beef if they do not receive a satisfactory price and if they do not produce, the factories will be out of commission.
I thank the Deputy for his good wishes. Unfortunately our wonderful relationship will end after Question Time. I wish him every success in his new portfolio.
We all agree that quality is paramount. It is the only way to obtain the prices we deserve. Beef prices have been quite strong this year.
I am delighted to see the balance has come back into the EU market where there is greater potential for us. The EU retail market is important and can, justifiably, obtain a good price on the basis of quality.
The Deputy is correct. Every year we have this autumnal difficulty between farmers and the factories. Unfortunately, Ministers cannot become involved in the commercial aspect. However, we are all au fait with the concerns expressed by the farmers and people involved in commercial activities. As a result of decoupling, we can expect changes in orientation. Perhaps farmers receiving the single farm payment will consider anew the best farming methodology and, as a consequence, be able to obtain a good and fair market value price for beef. I am not aware of any merit in trying to bring the organisations and producers together because, by tradition, one likes to stand on the outside looking in and giving out about the price. It might be easier to solve the Northern Ireland problem than this difficult situation.
However, the Deputy is right that there are concerns to be addressed. I cannot interfere in the commercial aspect, but the Department will keep a watching brief. The Government has the view that we must also introduce some competition into the market with our live exports.
Mary Upton
Ceist:2 Dr. Upton asked the Minister for Agriculture and Food if her Department has investigated or considered the results of a Garda investigation into a fraud involving the certification of beef for the Russian market at a processing plant in Leinster; and if she will make a statement on the matter. [24695/04]
My Department has asked the Garda to investigate certain practices in a licensed beef processing plant. This action was taken following preliminary results of an investigation conducted by a team from within my Department.
The nature of the investigation that led to the involvement of the Garda centred on the company's compliance with the terms of specifications for the non-EU market concerned. Such specifications are additional to those that apply in normal trade within the EU and form part of certification procedures agreed between the exporting and importing countries. In the case referred to, the issue relates to the extent to which the company in question adhered to these specifications. It would not be appropriate for me to comment further on the matter while the Garda investigation is ongoing.
I wish the Minister every success in her new portfolio. I am delighted to be joined by a woman in this area and to see a woman looking after agriculture in this country. I congratulate the Minister of State, Deputy Browne, on his new portfolio and Deputy Brendan Smith on his promotion to Minister of State. It is also appropriate to wish Deputy Timmins well in his new portfolio. I am sorry we will no longer exchange views on agriculture matters in committee.
I appreciate the Minister cannot offer extensive comment on the question since it refers to a Garda investigation. However, how much beef was involved in the scam? There are shades of the beef tribunal about this case. Ireland recently mended fences with Russia on exports following the BSE crisis and it is a great shame, having successfully reopened that market, that this should happen. The consequences for agriculture and the beef industry in particular are serious. When will there be an outcome from the Garda investigation? I appreciate this is outside the Minister's control but she may have information on that.
I share the Deputy's concerns and disappointment regarding this case. The Department carried out a preliminary investigation and asked the Garda bureau of fraud on 5 October to carry out an investigation. I assume that will be concluded as quickly as possible to address the issues.
I have been advised a substantial proportion of the beef in a particular category did not meet the criteria set down. However, I emphasise the Department's vigilance in light of this disappointment. Examinations were carried out in other plants that have certification for that market and I have been assured there is no evidence of widespread breaches. Significant diplomatic and other efforts were undertaken to reopen this lucrative market, to which Ireland exports a significant volume of meat. A great deal of work and negotiation was undertaken and any infringement or undermining of that market will be dealt with strenuously by the Department.
Was any of the beef exported? I appreciate this involved a breach of certification but it would be much more serious if the beef involved left the State. If so, what action has been taken? Is action being taken to rebuild bridges with Russia?
The company in question has been suspended indefinitely from supplying to this country. Controls relating to all aspects of this trade have been tightened in every plant that has certification. The European Commission has been informed.
There was an export and we have been advised the beef did not meet the age or sex criteria and some of it exceeded the 36 months condition. We have advised everyone possible and there are ongoing discussions between ourselves and the Commission. I do not have a quantity but I will advise the Deputy if that information becomes available.
Has the exported beef been recalled from the Russian market?
I will have to get back to the Deputy on that.
Farm Household Incomes.
James Breen
Ceist:3 Mr. J. Breen asked the Minister for Agriculture and Food the action that will be taken in view of the fact that meat factories are reducing the price of beef and lamb paid to the farming community and in view of the resultant hardship and loss of income for producers. [24692/04]
The price paid by meat processors for animals is a commercial issue in which I have no direct role. Nonetheless, it is in the interests of the meat industry and the food supply chain that a fair return from meat sales is available to both primary producers and processors. In this regard the decision to decouple direct payments from their associated production from next year will realign production with market expectations and the market will be the sole determinant of the nature and scale of output from the sector.
Beef prices have been satisfactory in 2004, with R3 steer prices 11% higher compared with the same period last year. Beef prices are showing the usual seasonal decline and the downward pressure on price is also in part due to poor returns from Russia where prices have dropped significantly and to a weakness in the UK market for particular cuts. The focus has switched in recent years to the higher value EU market where returns are forecast to improve in the longer term as the effects of decoupling across the community take effect. Given the growth in intra-Community sales, Ireland is well placed to consolidate its EU market position and to move further up the value chain, particularly given the emergence of an EU market deficit in beef for the first time in 25 years.
Russia remains the key third country market for Irish beef and I am pleased to announce the reopening of the Algerian market, traditionally an important market for Irish beef. This will be a welcome additional outlet for Irish beef, particularly in the autumn period.
Sheep prices have remained stable compared to last year. Recent average prices for lamb are running slightly below last year's level due to higher levels of supply, which are 10% ahead of last year's total. Greater emphasis on good breeding policies, payment related to quality, sophisticated integrated supply and purchasing systems, together with more competitive processing structures are key to maximising long-term returns from cattle and sheep.
I join other Members in wishing the Minister and the two Ministers of State the best of luck in their new portfolios.
Farmers are experiencing severe hardship. The price of cattle reduced by €140 in July and August and fell a further €30 last month. Will the Minister ask the Competition Authority to investigate the prices factories are paying for beef and lamb?
The new EU Agriculture Commissioner is opposed to live cattle exports. Will the Minister guarantee their continuation?
I refer to the modulation fund. Medium and small producers were forced to sell their weanlings this year without a premium. Will the Minister ensure small farmers will receive money from the fund to compensate them for the loss of this premium because they could not afford to maintain weanlings?
Will the Minister also ensure more than two days' notice is given to farmers for on-farm inspections? This is causing considerable hardship for farmers. Farmers should be given two weeks' notice because most of them have one man operations. They experience hardship in rural areas when they are told a herd check will be carried out within two days because help is scarce. They should be given at least two weeks' notice and I ask the Minister to ensure that happens.
Modulation is an issue for further consideration and I am anxious to ensure those most in need will be facilitated.
The Government very much favours live exports. Ireland has a tremendous animal welfare regime, which exporters and farmers have lived up to and adhered to strictly. I appreciate that the weanling trade is absolutely paramount for farmers along the western seaboard and in County Clare in particular. Given that there are still difficulties with the ships providing the service to export live cattle, the Department will maintain a close watching brief to ensure this trade is protected.
With regard to the notification of on-farm inspections, the necessity for holding them at short notice is slightly superfluous on the basis of decoupling. My predecessor, Deputy Walsh, was most anxious to secure a 14 day notice period for inspections and we will try to the best of our ability to ensure that happens.
The Deputy is correct that prices are an issue of concern to many Members. The Department would step over the mark if it interfered in the commercial aspect of production. While I do not have a direct role, the Department will maintain a watching brief on this issue.
Will the Minister ask the Competition Authority to investigate the prices paid by the factories?
I will have to consider that.
Question No. 4 withdrawn.
Bovine Diseases.
Mary Upton
Ceist:5 Dr. Upton asked the Minister for Agriculture and Food the resources being used to counter the growing incidence of Johne’s disease; the number of cases of the disease to date in 2004; and if she will make a statement on the matter. [24696/04]
It should be stressed that Johne's disease is widespread in other EU member states and worldwide. It is a chronic infectious disease of cattle which gives rise to gradual wasting and loss of condition and is caused by infection with mycobacterium avium subspecies paratuberculosis, or MAP. Most cattle are infected early in life. While adult animals can become infected, it is rare for them to do so. Usually, such animals have other problems including deficiencies of the immune system. The disease has been notifiable in this country since 1955.
Until 1992, strict import conditions were instrumental in ensuring that Johne's disease was relatively rare in Ireland. Since 1993, the increase in the number of cattle being imported with the advent of the Single Market has contributed to a significant increase in reported instances of the disease. Whereas a total of 92 animals were diagnosed in the 50-year period from 1932 to 1982, in 2002 and 2003 100 and 150 animals, respectively, were diagnosed as having Johne's disease. Figures on the incidence of Johne's disease for 2004 have not been collated. It can take up to six months to obtain results from samples submitted for culture due to the extremely slow growth pattern of the organism involved. In general, farmers appear to be more aware of the disease. The increased volume of samples, particularly of blood, being submitted for analysis suggests that an increasing number of farmers are actively managing the disease on their own farms.
I recognise the need for an effective national strategy to arrest and reverse the incidence of the disease. In an effort to raise awareness and to promote higher standards of hygiene management practices and calf rearing, the Department published two booklets on Johne's disease in 2002. One is aimed at farmers while the other addresses the private veterinary practitioner. All farmers with breeding animals received a copy of the booklet by post during 2002. The booklets detail the precautions individual farmers should take to keep the disease out of their herds and highlight that effective control measures centre on calf-rearing practices. In addition, it is prudent for any prospective purchaser to seek private certification of freedom from Johne's disease from a vendor of cattle imported from abroad or sourced within this country. As the effect of this approach is to protect the purchasing herd, farmers are urged generally to take such a precaution.
Until early 2003, my Department's approach was to slaughter the affected animals and, on occasion, other animals in the herd and pay compensation. When it became apparent that this approach was ineffective, it was dispensed with and a strategic review of mechanisms to tackle the disease was initiated. It is clear that nothing less than a fully integrated strategy involving all of the relevant stakeholders, in which each plays a defined role, will be effective. Accordingly, the review has involved consultation with all of the relevant interests. The process generated a number of very useful proposals of a practical nature.
It is clear that the effective tackling of Johne's disease can only be achieved over a number of years. The strategy being developed will, therefore, involve short and long-term elements. In conjunction with others, my Department is finalising a number of the short-term elements and will shortly revert to stakeholders on them. Once this has been done, all elements of the new national strategy will be quickly drawn together. As research, evaluation of a number of diagnostic and screening methods and interim provision of diagnostic support at the Central Veterinary Research Laboratory will be features of an effective national strategy, and €240,000 has been allocated for these purposes in 2004.
I thank the Minister for her extensive reply. One of the problems with MAP is the likelihood of subclinical infection, particularly if an infection already exists at the primary herd level. Is an active monitoring programme in place to take blood samples, as the Minister suggests can be done through the Central Veterinary Research Laboratory? I appreciate that the timescale to culture the particular micro-organism involved is very long and that clinical symptoms may have emerged over a six month period. It is nevertheless important to invest in research to assure everybody, particularly farmers, that there is an effective and rapid detection method to stop the disease progressing in a herd and to permit the removal of infected animals as quickly as possible.
The Minister did not answer an important aspect of my question. In the United Kingdom there is a considered view that there is a tenuous link with certain human illnesses. While that is not confirmed, there are various shades of opinion on the matter which it is very important to consider. We must address the disease at farm level to ensure its impact is minimised and take on board all the latest research findings in case of any possible transmission to humans. We have learned some very tough lessons in this regard from other animal diseases.
I agree with the Deputy. As I am not a veterinarian or from a diagnostic field, I will leave the matter in the hands of the experts, of which Deputy Upton is one. Overall, it is not a matter of finding a simple solution to a difficult problem. I am very anxious to ensure the proper implementation of a national strategy. It is my intention to introduce the strategy as soon as possible and, hopefully, by the end of the year. The Deputy is correct to say that screening is very important which is why the evaluation of diagnostic and screening methods is paramount in the context of research.
As the Deputy referred to concerns expressed about a tenuous connection to human health issues, I take this opportunity to inform the House that the Department consulted with the EU Commission on the matter. A report of its scientific committee on possible links was published by the Commission in 2000. According to the report, there was insufficient evidence from which to draw any firm conclusion. The Department referred the matter to the Food Safety Authority of Ireland also, which was of the same view as the Commission. We will continue to monitor scientific evidence as it becomes available to the Department.