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Beef Industry

Dáil Éireann Debate, Wednesday - 25 November 2015

Wednesday, 25 November 2015

Ceisteanna (129)

Bernard Durkan

Ceist:

129. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the strength of the beef herd, with particular reference to the need to ensure the availability of sufficient calf production to meet the current and future market requirements; and if he will make a statement on the matter. [42000/15]

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Freagraí scríofa

While the state provides significant support for the beef sector, the volume of production is ultimately a function of commercial factors such as the price of beef, the cost of farm inputs, market demand, consumer preferences, disposable income and the demand for other meats and sources of protein. The average price received by producers for an R 3 steer in 2015 to date is €4.01, over 10% higher than the 2014 average.

In 2015, I have rolled out a number of supports for Beef farmers. The BDGP involves an investment of over €300 million in suckler farming over the next 6 years under Ireland’s Rural Development Plan (RDP). The scheme aims to improve the genetic merit of Irish beef cattle, which will in turn lead to increased returns for beef producers and improve the environmental sustainability of the beef herd. The scheme also aims to reverse the decline in the maternal index seen in recent years in the Irish beef herd. This investment is a huge vote of confidence from the government in the Irish Beef herd’s potential into the future.

Beef farmers can also avail of my Department’s Knowledge Transfer Programme and my Department provides significant funding for bodies such as Teagasc, Bord Bia, ICBF and AHI, which are a vital part of the support infrastructure for beef.

Participants in the programme will receive a payment of €142.50 for each of the first eligible 6.66 hectares and €120 for each of the remaining hectares up to the maximum payable area. The maximum payable area is based on the number of calved suckler cows in each herd in 2014. The payment rates provide for a higher payment linked to the first 10 animals on each herd as I felt it was important to favour smaller herds through this programme. The payment rate of €142.50 is the maximum amount which could be provided based on the cost incurred and income foregone associated with the actions under the BDGP, as negotiated with the European Commission. The BDGP is the only animal based scheme in the Rural Development plan.

Ireland is a major exporter of beef, supplying more than half a million tonnes annually to a wide array of European and International markets. Irish beef is now purchased by more than 85 EU supermarket chains, along with numerous high-value food service and manufacturing customers. The Origin Green sustainability programme is central to Bord Bia's promotional strategy for Irish beef, alongside the Beef and Lamb Quality Assurance scheme (BLQAS). One of the fundamental elements of Origin Green relates to the sustainability survey carried out at the time of the farm audit. With over 47,000 certified farms in BLQAS, Ireland is the first country in the world to measure on-farm sustainability on such an extensive basis. The programme has already proven to be a unique advantage in communicating with key customers, and is the envy of other major beef producing countries. Earlier this year, Ireland became the first European country authorised to resume exporting beef to the US market and this market is already worth almost €9m. Similarly, China offers future huge potential for Irish beef exports and my Department is working with the Chinese authorities to have the final technical issues resolved before trade can commence.

Question No. 130 answered with Question No. 119.
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