Michael Creed (Cork North West, Fine Gael) | Oireachtas source

I welcome the opportunity to say a few words in the debate. In view of the level of interest in the topic among all parties, perhaps the Whips might consider arranging a day-long debate on agriculture. It is very difficult to make a meaningful contribution in three minutes.

There is undoubtedly a problem in the beef sector. Depending on whom one listens to, there are a myriad of reasons for it and a myriad of solutions. It is important to remember we export 90% of what we produce. There is a very significant contrast between the dairy industry and the beef industry. The dairy industry is much more integrated. There is a relationship between the primary producer and the processor. That is not exclusively but primarily because of the co-operative structure which owns a considerable amount of the processing facilities. With beef it seems to be a continual fractious relationship between the primary producer and the meat plants. In the long term that is not a recipe for a successful enterprise.

I welcome the Minister's beef forum initiative. We need to move towards more contract-based production which would give certainty in the area of price. There is a tipping point in the debate and we need to be very conscious of the consequences of going beyond that in terms of the continual criticism of retail outlets and processors in the beef sector. That is not to say neither is beyond criticism. We could have very useful contributions in a wider debate on how few players are involved in the processing sector in Ireland. If we go too far, however, there is a significant danger we might alienate customers. If some very significant purchasers of Irish beef, such as McDonald's and Tesco, are continually pilloried, there is a danger that they could strike back.

There is another opportunity farmers could consider taking up but should consider history. Kildare Chilling is rumoured to be for sale. Perhaps it is time for farmers to consider whether they wish to enter the processing industry. There is previous history in this regard when Cork Marts got involved in meat processing back in the 1970s. It had plants in Grand Canal Street in Dublin, Leixlip and Midleton. Interestingly, Kerry Co-Op ultimately took over the Midleton plant. Cork Marts could not get out fast enough.

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