Dáil Éireann Debate, Tuesday - 31 March 2015
159. Deputy Martin Ferris asked the Minister for Agriculture, Food and the Marine in view of the recently published rich list which includes the names of Irish beef barons, his views on the latest reduction in steer and heifer prices being imposed by the factories on Irish farmers; and if he will make a statement on the matter. [12813/15]
Amharc ar fhreagraAs the deputy is aware, I have no input into prices paid to beef farmers as such prices are determined by a range of market factors. These factors include seasonality of production, consumer preferences, competition from other meats, conditions in international markets, retail promotions, exchange rates and the overall macroeconomic situation and a combination of all of these will determine the price paid to a beef farmer. I am pleased to note that prices at the end of last week have increased 15% since last September and are now 6% higher than in the same point in 2014. Current beef prices in Ireland stand at 103% of the EU15 average. As of the end of last week, the average price s paid (excluding VAT) for an R3 steer stood at €4.03/kg and an R3 Heifer at €4.14, an increase on the previous week and almost 10% higher than the beginning of the year in both cases.
The weakening of the euro is a factor in strong demand for Irish beef, due to 90% of beef produced in the State being destined for export, the majority of which goes to the UK. Although slaughter numbers are still high at present, supply is ultimately expected to contract this year by around 10%. This, combined with more markets being available for both Irish Beef and live exports, suggest continued positive market conditions as the year progresses.
In relation to farmers’ share of margins along the supply chain, I will, as agreed at the Beef Forum, be bringing forward proposals for the recognition of beef producer groups, which can provide a framework for collective action by farmers in a range of areas, including collective bargaining on price.
Of course, new market opportunities for both beef and live cattle exports also impact on the eventual returns to farmers. The recent opening of the US market to Irish beef is a major achievement in this regard. The announcement of China lifting its ban on Irish beef is yet an other major gain for producers and is a clear endorsement of Ireland’s food safety standards .
The Deputy will also be aware that I have made provision for a package of support measures for the Beef Sector in 2015 worth over €70m. This includes €52m for the Beef Data and Genomics Programme (BDGP) which forms part of Ireland’s draft Rural Development Programme and will have a budget of €300m over a period of 6 years. The proposed BDGP is intended to deliver an accelerated improvement in the environmental sustainability of the herd through the application of genomic technology. It will also position Ireland at the global forefront in the application of genomics technology and cement our place as one of the most important export focussed beef producing nations in the world.
