Dáil Éireann Debate, Thursday - 17 December 2015
290. Deputy Michael McCarthy asked the Minister for Agriculture, Food and the Marine his views on correspondence (details supplied) regarding livestock farmers; and if he will make a statement on the matter. [46369/15]
Amharc ar fhreagraMy role as Minister in relation to the beef sector is to establish a policy and support environment that allows it to flourish in line with normal market principles. As the Deputy is aware, price is ultimately a matter to be determined between both the purchasers and the sellers of cattle. Cattle prices are determined by supply and demand dynamics which are in turn influenced by seasonality of production, length of the production lifecycle, market conditions such as retail promotions, consumer confidence, competition with other meats as well as the overall macroeconomic situation. My Departmental officials and I are constantly conscious of the need to develop new market outlets for quality Irish beef and live cattle. I have just returned from a trade mission where I discussed market access with my counterparts in Nigeria and Ghana, and this week access has been secured to the Maldives for beef exports, making it the fifth nee market this year for Irish beef.
2015 has been a relatively positive year for beef prices in Ireland with the yearly average to date up 8% on last year. With regard to the price differential between Irish and UK cattle, a number of factors have been identified to explain why Irish-born cattle command lower prices than their British equivalents. These include a British consumer preference for indigenous product as well as additional transport and processing costs in supplying that market. However, one should note that sharp currency fluctuations have been one of the major factors in price divergence this year. Live exports of Irish beef cattle to Northern Ireland are up this year in both absolute terms and relative to cattle of dairy dams. At the end of October, 28,500 beef cattle had been exported across the border compared to 18,600 in the same period in 2014.
The best interests of this very important industry are ultimately served by ensuring a continuing supply of high quality cattle to the processing sector, and, subject to market context, this objective can be best achieved by providing a fair level of remuneration to suppliers for their efforts. I would also encourage processors to ensure that their systems for determining price are as open and transparent as possible to the farmer and that any adjustments or changes regarding specification criteria are clearly and promptly communicated and have regard to the realities of the production cycle.
In 2014 there were 1,647,827 carcasses of adult bovines classified by mechanical (94.4%) or manual (5.6%) methods. There were 515 classification control inspections conducted by Classification officers during 2014 in 31 factories and local authority abattoirs. During these unannounced inspections 51,017 carcasses were checked by Classification officers for conformation and fat. DAFM Classification officers also checked weights, dressing (Trim) and labelling. In the first 11 months of 2015 50,782 carcasses were inspected during 520 unannounced inspections. At these inspections, DAFM officers also conducted all the ancillary checks outlined above. There are currently five officers authorised to supervise classification checks. While I am satisfied that my Department operates a robust and comprehensive carcass classification control regime, I am also aware of the need to continuously monitor the way in which controls are undertaken, including the feasibility of reconfiguring existing Department resources within meat factories. I can assure the Deputy that this process of analysis and review is ongoing, and that I will make any necessary adjustments to ensure the continued good functioning of the control regime.
The outlook suggests that 2016 may be a challenging year for the sector. However, with careful and considered monitoring of market trends, open channels of intra-sector communication and engagement, access to new export market for beef and live cattle and a continued focus on highlighting Ireland’s high-quality, grass-fed beef system, I believe the industry can overcome these challenges and continue to justify the large vote of confidence that this government has placed in the beef sector.
Yesterday I chaired the seventh meeting of the Beef Roundtable. The meeting discussed proposals to recognise Producer Organisations in the Beef Sector, which will give formal recognition to POs for the first time in Ireland, as well as an update on beef markets and upcoming initiatives in animal health. As always the meeting also reviewed the implementation of the Agreement from last November’s Roundtable. The producer organisations have been one of the key outcomes of last November’s roundtable agreement and marks an historic breakthrough for Irish beef farmers who now for the first time will have a legal framework allowing for negotiation directly with factories on price as a group. As we have seen from other sectors, POs can greatly help to rebalance the supply chain by strengthening the hand of producers who will now have a structure for negotiating collectively.
