Andrew Doyle (Wicklow, Fine Gael) | Oireachtas source

I move amendment No. 2:

To delete all words after “Dáil Éireann:” and substitute the following:

“notes:

— that the beef sector has experienced a sustained period of depressed prices and farmers are experiencing very challenging conditions, and prices are now 9 per cent below the same period last year, and have been consistently depressed since autumn 2018, for a variety of reasons, including sterling weakness and the uncertainty surrounding Brexit, with the United Kingdom accounting for 50 per cent of Irish beef exports;

— that the overwhelming consensus among farm representatives and other stakeholders is that the current impasse in the sector needs to be resolved to permit farmers with finished stock to have them processed, to protect blue chip markets, especially in advance of Brexit, and to avoid any long-term damage to the sector;

— that with that in mind, an agreement was reached between the processing sector and seven farming organisations/representatives in recent days to resolve the current difficulties;

— that this agreement includes a range of immediate benefits for farmers in terms of bonus payments and also includes a commitment to develop a beef market price index model and a review of the Quality Pricing System (QPS) grid;

— the importance of upholding this agreement in the broader interests of the beef sector as a whole, from the perspective of suppliers, processors and those employed by the processing sector;

— that up to 10,000 jobs in the processing sector are threatened by the continuation of the dispute and the livelihoods of 80,000 farm families are at stake; and

— while the Government cannot legally intervene on setting beef prices in the sector, every effort is being made to bring about a resolution to the current situation and to fully support the future development of the beef sector;

further notes that:

— the Government has negotiated a €100 million Beef Exceptional Aid Measure (BEAM), co-funded by the European Union (EU) and the Exchequer, in recognition of market difficulties in the beef sector;

— the BEAM deadline is currently open for applications and has been extended for another week for new applications, to be facilitated at the Ploughing Championships this week;

— this funding is in addition to a new €20 million Beef Environmental Efficiency Pilot, launched in January 2019;

— the first ever legal framework for setting up producer organisations was introduced by Government and extensively promoted, and this has led to the approval of the first beef Producer Organisation last week, which will provide farmers with a legal basis for negotiating a better deal in the marketplace; and

— the Government has actively advocated to safeguard the Irish beef sector in the context of the Mercosur Agreement and will continue to do so as the Agreement is further deliberated at an EU level; and

recognises that:

— a Beef Market Taskforce is being established to develop a sustainable pathway for the future of the beef sector and to provide a platform for engagement with retailers and other key stakeholders in the sector;

— this Taskforce will provide for a robust implementation structure for the commitments entered into in the Beef Sector Agreement of 15th September;

— an independent examination on price composition on the supply chain in the sector is being undertaken;

— an analysis of competition issues is being drawn up;

— there continues to be active engagement on the development of Protected Geographical Indication for Irish beef and on promotional activity for Irish beef in key target markets;

— a public consultation process on the transposition of the Unfair Trading Practices Directive and the establishment of a regulator for the sector will shortly commence; and

— Area of Natural Constraint scheme payments are being commenced this week and all other payments are being made without delay in order to support farmers in difficult economic circumstances.”

I thank Deputy McConalogue and others, and those who have yet to contribute. I share the serious concerns about the ongoing difficulties facing the beef sector and I certainly understand the frustration which has driven some farmers to engage in prolonged picketing. Last weekend, the Minister, Deputy Creed, facilitated lengthy negotiations involving all the stakeholders to try to find a resolution to the current dispute. These were just the most recent talks in a series of formal discussions between beef stakeholders which have been facilitated by the Department of Agriculture, Food and the Marine, both in Backweston and Agriculture House. These commenced with a meeting on 12 August and continued through last weekend. The Minister, Deputy Creed, and I have had ongoing bilateral discussions and meetings with organisations, representatives and individual farmers.

The common thread in discussions is that all parties agree that it is critical to find a means of getting the sector fully operational again to protect the livelihoods involved, including both the farmers and factory workers whose jobs are at risk and all players in the sector. The talks last weekend culminated in an agreement between the meat industry and seven farm organisations and representatives, all of whom undertook to support the agreement on the ground and recommend that those protesting should step back their protests in response to this negotiated agreement. The agreement is a two-strand approach aimed at providing immediate financial benefits directly to beef farmers as well as addressing longer term structural issues which are in many ways the core of the problem. A means to implement and measure progress on these measures was also set out and agreed.

In summary, as part of the deal, there is an increase of 66% to the current in-spec bonus for steers and heifers from 12 to 20 cent per kilogram and introduction of a new 8 cent bonus for steers and heifers aged between 30 and 36 months which meet all non-age related existing in-spec criteria which up to now have not received any bonus. There will be an introduction of a new in-spec bonus of 12 cent per kilogram for steers and heifers under 30 months in the categories of O- and fat score 4+ which currently do not qualify. The in-spec 70 day residency requirement will be reduced to 60 days on the last farm. These measures offer an immediate financial benefit to beef farmers. They both increase the level of bonus being paid and significantly increase the number of animals that are eligible for a bonus. The cumulative effect is that more than 70% of all steers and heifers slaughtered will now be eligible for a bonus payment on top of the base price.

The establishment of a beef market task force is part of the agreement, to provide leadership to develop a sustainable pathway for the future of the beef sector in economic, environmental and social sustainability. The Minister, Deputy Creed, will appoint an independent chair to lead the task force. Its membership will comprise the Department of Agriculture, Food and the Marine, relevant State agencies and nominees from farm organisations and the meat industry. This task force will provide for a robust implementation structure for commitments entered into in the arena with timelines and stakeholder engagement. Further, it will offer a suitable platform for strategic engagement with key stakeholders, including retailers and the regulatory authorities. Other key immediate actions include the development by Bord Bia of a beef market price index model and a scientific review of the quality payment grid by Teagasc.

The second strand of the agreement sets out the strategic measures which seek to address structural imbalances in the sector. These measures will provide clear information and greater transparency to the sector with a view to ensuring the sustainability of this sector in the future. A number of actions in the area of market transparency, beef promotion and strengthening the position of the farmer in the food chain were agreed upon.

The agreed measures set a course towards greater clarity for all stakeholders involved in the beef supply chain, primarily farmers, and the agreement includes commitments on an independent review of market and customer requirements, specifically relating to the four in-spec bonus criteria currently in operation in the beef sector. Another measure is an independent examination of the price composition of the total value of the animal, including the fifth quarter along the supply chain. The results will inform future actions as necessary. The beef industry will co-operate in providing the data. There will be initiatives on improving information on carcase classification.

I know that many of the criteria for the in-spec bonus have been much discussed over the long days and nights of the discussions. It is imperative that we have the hard facts about third country and consumer requirements to inform discussions. The independent review will provide clarity about these requirements. A country exporting the majority of its products is dependent on a range of market requirements. There are also commitments to more detailed price reporting, more reporting on carcase classifications and the transposition of the EU directive on unfair trading practices.

Full details are available on the website so, conscious of the time, I will not go into them in full. I am convinced that this contains the best balance between immediate financial benefits for beef farmers and a series of more long-term strategic actions that are absolutely necessary. Other initiatives, such as BEAM, have been mentioned. For the benefit of Deputy Cahill, I can clarify that the only finishers excluded are those from factories' dealer herd numbers.

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