I propose to take Questions Nos. 38, 150, 151 and 153 together.
The size of the beef cow herd is a function of market forces and maximising its output potential is contingent on range of economic variables including the price of beef in EU and international markets. Because Ireland exports the vast bulk of its beef output, external market developments are an important determinant of Irish cattle prices. At present, price levels are strongly influenced by supply constraints in the domestic and key export markets. In these circumstances, it is essential that producers plan ahead in a prudent manner, are realistic in their expectations of future prices, keep a close eye on market signals for their particular stock and make trading decisions based on a careful analysis of their costs and margins. In short, beef enterprises should be run like any other business.
CSO statistics show that the beef cow herd in December 2011 numbered 1.06m head which was a reduction of 7,400 head (or 0.7%) on the figure for December 2010. Improved cattle prices have helped to stabilise suckler cow numbers. Irish cattle supplies at export meat plants are likely to fall by 100,000 to 120,000 head in 2012 on account of the strong live export trade in 2009 and 2010 and lower calf registrations over the period. While cattle supplies will be tight in 2012, an increase in the number of animals under 12 months at the end of 2011 compared to the previous year together with a substantial increase in the number of beef heifer calvings in the first quarter of 2012 suggest that cattle supplies should be more plentiful in 2013 and 2014 when increased numbers will also enter the beef supply chain from the dairy sector.
Having regard to the market situation outlined above, I am satisfied that the national beef herd remains well positioned to take advantage of favourable demand/supply dynamics as they arise. In this regard, I would remind the Deputy of the significant financial and infrastructural supports that my Department and its agencies currently provide to support beef production in this country.
Despite the significant budgetary pressures in 2012, I have provided €26 million to maintain the Suckler Cow Welfare Scheme. This scheme underpins improvements in animal welfare and breeding that are critically important to the future development of the beef sector. To date, my Department has paid out more than €130 million under this scheme which has contributed to improved prices for weanlings and enhanced the reputation of Irish livestock and beef.
I have also allocated €5m this year for the Beef Technology Adoption Programme which is aimed at addressing the issue of profitability in beef production through the adoption of best practice and improved technical efficiency inside the farm gate. The Programme is a stimulus measure that will encourage participants to upgrade their knowledge and skills and thereby increase the output of their beef enterprises. The future of the suckler herd depends on the role played by a growing number of increasingly efficient, market-oriented beef producers.
Apart from direct supports to aid the viability of the suckler herd, other strategic supports for the beef sector generally are of benefit to beef producers. These include the research and advisory services of Teagasc which demonstrate that there is significant scope for efficiency gains within the farm gate to substantially increase profitability from suckler beef production. Similarly, the substantial financial contribution made by Department to the Irish Cattle Breeding Federation enables it to improve the genetic quality of the national herd and add value in the marketplace.
Furthermore, the marketing and promotional work of Bord Bia is vital in increasing returns to the industry by targeting the best customers across Europe. Bord Bia is also developing a strong sustainability message around its Beef Quality Assurance Scheme and in that context has secured accreditation for its beef carbon footprint model. Its Beef and Lamb Quality Assurance Scheme is the first such scheme worldwide to include environmental criteria.
Insofar as international trade is concerned, I have been very active in initiating relationships in new and expanding markets in order to engender confidence in our production, traceability and quality control systems. These contacts will, I am sure, give the industry a solid platform on which to build future long-term trading relationships. As part of that effort, in April I led a very successful week-long trade mission to China that sought to develop new trade opportunities for Irish food business operators. In addition, my Department has engaged with a range of third countries — including Australia, the Philippines, South Korea, Turkey, Egypt, Algeria, Libya and others — with a view to opening new markets and raising the profile of Irish food products in existing markets.
I recently welcomed the publication on 16 March by the US. Department of Agriculture (USDA) of their draft BSE rule which essentially proposes to align the US BSE rules with those of the World Organisation for Animal Health (OIE). The public consultation period for the BSE rule is scheduled to end on 15 May, but may be extended depending on the volume of submissions received. My Department will shortly be submitting its comments to the USDA on the BSE rule. I will also be visiting the US. in June and I look forward to raising this important issue with my counterpart there during that visit.
I am confident that, if a collaborative approach is taken by all stakeholders, there will be tremendous opportunities for the Irish beef sector in the coming years. My Department and its agencies will continue to play their part in creating the conditions necessary for the beef industry to reach its full potential as envisioned in the Food Harvest 2020 strategy.
