Dáil debates

Wednesday, 26 April 2023

Agricultural and Food Supply Chain Bill 2022: Report Stage

 

5:57 pm

Photo of Michael McNamaraMichael McNamara (Clare, Independent) | Oireachtas source

The use of feedlots is just one of the avenues open to processors to keep down prices. This amendment does not require anybody to do anything but it facilitates the Minister or his successors to introduce legislation requiring very extensive reporting by meat processors on the "type of purchase, including grades, and age, the quantity of cattle purchased on a live weight basis, the quantity of cattle purchased on a dressed, or dead, weight basis, a range of the weights of the cattle purchased, the number of cattle purchased that were Bord Bia quality assured" - the Minister has repeatedly said that is very important - and "any premiums or discounts associated with weight, grade, or yield, or any type of purchase". That is quite important in the context of ascertaining the premia that are paid, in particular for in-spec Bord Bia quality-assured cattle. The amendment also references the terms of trade regarding the cattle, and that meat plants may be required to report on forward contracts on the quantity of cattle that were slaughtered, in addition to reporting on cattle "delivered under a formula marketing arrangement that were slaughtered; the quantity and carcass characteristics of meat processor owned cattle that were slaughtered; the quantity, basis level, and delivery month for all cattle purchased through forward contracts that were agreed to by the parties".

Meat processing plants may be required to report on average weight price paid per carcass; range of premiums and discounts paid; weighted average of premiums and discounts; range of prices; grade of beef; cuts of beef; trim specifications; and age specification of cattle. Meat processors may also be required to report on the prices they received for boxed meat, that is animals that have been killed and are vacuum packed. That is hugely important as there is some transparency as regards what farmers receive. There is not full transparency and there is certainly, as I alluded to earlier, a huge lack of transparency about the impact processor-controlled if not processor-owned feed lots have and the processors' ability to use them to hammer prices, but there is no transparency whatsoever around the price retailers are paying the processors. Unless and until we get transparency in that regard, we will simply never know where the profits are going in the food chain and who is getting what along the line.

We will also never know regarding, for example, the 30-month rule, which is not so important at this time of the year. I should declare that I am a farmer. It is declared in my Dáil Éireann interests. My experience as a farmer is that age specifications do not matter at this time of the year but they matter hugely when there is a volume of cattle to be killed. The Minister's Bill does not introduce transparency and, I respectfully say, does not have the capability to introduce transparency in that regard. If and when the Minister introduces regulations - I do not believe he will introduce regulations - it will be challenged by the processors on the basis that it is commercially sensitive. The principles and powers set out in this Bill do not facilitate the Minister to introduce that legislation. Any regulations the Government brings in to that effect could be struck down as being unlawful.

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