Dáil Éireann Debate, Tuesday - 15 October 2019
58. Deputy Denis Naughten asked the Minister for Agriculture, Food and the Marine to outline the steps he is taking to implement the agriculture motion adopted by Dáil Éireann on 26 September 2019; and if he will make a statement on the matter. [41796/19]
Amharc ar fhreagraIt is unacceptable that ABP Food Group has effectively stalled the beef task force through its failure to lift legal threats. I accept there is no silver bullet to the issues that are before us but the four measures I put forward in a recent Private Members' motion would fundamentally shift power from meat processors and supermarkets to beef farmers. While this will not solve the problem overnight, if such effective steps had been taken five years ago, we would be in a very different situation today.
There have been a series of formal negotiations with beef sector stakeholders facilitated by my Department since early August. This culminated in an agreement being reached between stakeholders on Sunday, 15 September. This agreement covers the types of issues raised in the Dáil motion of 26 September.
The full text of the agreement between beef sector stakeholders is on my Department website. The agreement involves a number of interventions which will provide immediate benefit for beef farmers as well as a range of strategic measures which seek to address structural imbalances in the sector. Beef producers will benefit from an immediate increase in a range of bonuses. This will increase the level of bonus being paid on certain animals as well as significantly increasing the number of animals which are eligible for a bonus. The cumulative effect is that over 70% of all steer and heifers slaughtered will now be eligible for a bonus on top of the basic price paid. A number of actions in the area of market transparency, beef promotion and strengthening the position of the farmer in the supply chain are included in the agreement. These measures set a course towards greater clarity for all stakeholders involved in the beef supply chain, primarily farmers. My Department is also proactively engaging with several potential beef producer organisations, which have the potential to strengthen the bargaining power of beef farmers in the supply chain. Two beef producer organisations have been formally recognised by my Department in recent weeks.
I have established a beef market task force to provide the leadership to develop a sustainable pathway for the future of the beef sector in terms of economic, environmental and social sustainability. The task force will provide a robust implementation structure for commitments entered into in the agreement, with timelines and stakeholder engagement. Furthermore, the task force will offer a suitable platform for strategic engagement with key stakeholders, including retailers and regulatory authorities. The task force is also the appropriate forum for considering issues such as the potential of blockchain in the sector. I have appointed Michael Dowling as chairperson of the task force. Members include representatives from my Department, State agencies, farm organisations and the meat industry. As Deputy Naughten is aware, the task force was supposed to meet yesterday but that meeting did not proceed. I expect he shares my view that this was entirely regrettable. The remit of the task force is to monitor the implementation of the actions arising from the agreement of 15 September. It offers the most viable platform for strategic engagement with key stakeholders.
I thank the Minister for his reply. I call on him to take two specific measures in the short term. Pending the establishment of the task force, and even if the task force is established, these measures can provide progress in this area. The Ministers for Agriculture, Food and the Marine and Business, Enterprise, and Innovation have the power to ask the Competition and Consumer Protection Commission to carry out a market study of the beef industry here. Such a study should not be left to the task force and should be carried out now. It should be used as a vehicle to provide assistance and support to the beef task force and to identify where there are weaknesses within the competition beef sector.
Will the Minister explain the position as regards efforts to secure protected geographical indication status for grass-fed suckler beef? I note from a reply the Minister provided last week that an application will be submitted for Irish grass-fed beef but that suckler beef has been left out. As he is aware, the Commissioner for Agriculture and Rural Development, Mr. Hogan, has made it clear that the application should be for suckler beef and not only grass-fed beef.
I will address the latter point first. We are informed by what resonates with consumers. All of the advice is that the concept of suckler beef does not have a high degree of resonance but there is, across a range of agrifood products, a resonance with consumers about grass-based production systems as opposed to more intensive indoor rearing of cattle, etc. Seeking geographical indication status is important. We have seen in Irish whiskey what it can do for the drinks industry. There is geographical indication status for a range of other products as well. Pursuing this status in a way that delivers something tangible for farmers is our motivation.
I would have expected suckler beef to resonate but all of the advice is that grass-based production systems are what resonate with consumers. We are informed in this respect by market research engagement with Bord Bia and through pursuing the matter with the European Commission.
As I said, the Competition and Consumer Protection Commission has looked at this sector on several occasions. Continued vigilance by the commission to ensure there is no abuse of a dominant position in the sector is important in instilling confidence among farmers. More critically, we need the task force up and running. It must be enabled to pursue the agenda agreed by its members in the recent talks and to develop other issues it may wish to address.
I am disappointed that the Minister is not taking the advice of Commissioner Hogan that we should seek designation for suckler beef. That is where we have a crisis. We need a distinctive marketing tool for Irish suckler beef. I am disappointed too that the Minister does not intend to consider my proposal in respect of the Competition and Consumer Protection Commission. Certain tools available to the Government could help to provide transparency. These are preferable to expecting farmers to come forward with documentary evidence on the lack of competition.
As we all know, serious concerns have been expressed regarding lack of competition and control of the offal sector. I put it to the Minister that the future bottleneck in getting product to market will be determined on the basis of who owns the beef blockchain.
That will be the offal of the future and the State must control it. I ask the Minister to provide assurances that the State will develop a beef blockchain, will control and own it and that it will not be left to a processor or group of processors to control it, thereby effectively controlling access to both the market and the consumer.
In terms of promotion, we have provided substantial additional resources to Bord Bia in recent years. This year, despite the difficult budgetary situation, we again increased the resources available to Bord Bia for promotion and, in particular, we ring-fenced promotion of beef and sheep meat. I do not accept the Deputy's criticism in that regard. We have never spent more on looking for new market opportunities or promoting the qualities of Irish beef and its grass-based credentials. That is a critical part of what we do.
I accept that blockchain is the technology of the future. We have a lot of the data about our herd, including its movements and quality, already available in digital format. However, the reality is that the most demographically challenged sector in Irish agrifood is the beef sector because it has the highest age profile. We need to encourage everybody to embrace new technologies. There is potential for further developing a blockchain as an instrument to deliver information to farmers and primary producers. It can make information from the consumer as to the demands in the marketplace available to the primary producer, which is really important. There is a lot of potential in that area. It is already being investigated by big accountancy houses and researched by Bord Bia. It is something that will play an increasing part in the beef industry in the future.
