Oireachtas Joint and Select Committees

Tuesday, 4 March 2014

Joint Oireachtas Committee on Agriculture, Food and the Marine

Bull Beef Sector: Discussion

4:25 pm

Photo of Martin HeydonMartin Heydon (Kildare South, Fine Gael) | Oireachtas source

I thank the witnesses for their presentations. I wish to tease out a little more the change of specifications and the moving of the goalposts. When exactly did the meat industry start communicating to farmers their limited options for beef over 16 months? The IFA said in its presentation that in 2011 the factories strongly encouraged farmers not to export their dairy calves and keep them for bull beef. Much of the difficulty with what Mr. Healy said today is that the current crisis and difficulties seem to have arisen out of the blue all of a sudden. One could nearly pinpoint their arising to a date in late December. Mr. Healy would have us believe the difficulties slowly crept up on us and that he has been saying for a very long time that farmers should be careful in this regard. The problem seems to have hit farmers all of a sudden.

More than one contributor referred to suspected market manipulation. Deputy Éamon Ó Cuív mentioned ICOS representatives' recent visit to England. Let me tease this out a little more. I accept the point that 50% of the cuts go to the United Kingdom. ICOS representatives found Irish beef and British beef sold at the same price per kilogram in Tesco stores. Two identical cuts of brisket beef that were photographed, one labelled "Irish" and the other labelled "British", were both priced at £8 per kilogram. Therefore, the Irish farmer is receiving 15% to 20% less per kilogram. Where does the margin go? Can we take it that if the meat industry is not taking it, the multiples are doing so? Can we join the dots in this regard?

Overall, how much did the horsemeat scandal cost the industry last year? Many farmers are telling me that it is a case of the meat industry trying to make the money back and that farmers are ultimately paying for the scandal. Could Mr. Healy comment on that?

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