Dáil Éireann Debate, Wednesday - 13 October 2004
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]
Amharc ar fhreagraThe 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.
