Oireachtas Joint and Select Committees

Tuesday, 24 February 2015

Select Committee on Agriculture, Food and the Marine

Estimates for Public Services 2015
Vote 30 - Agriculture, Food and the Marine (Revised)

2:00 pm

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael) | Oireachtas source

The payments relating to hen harrier designated lands is, I believe, €370 per hectare. It is the figure we had agreed on, up to €7,000. We had to negotiate all these payments and these ceilings with the Commission in order to get agreement from it as to how the scheme would operate. The Commission is the body mentioned when talking about agreement and acceptance on these matters, because ultimately it is paying 54% of the cost.

Beef prices are currently 15% higher than they were last September. We cannot expect beef prices to increase every week, they will go up and down slightly but as long as the graph is moving upwards then we are in quite good shape. What farmers are paying for store cattle at the moment would suggest that they are encouraged by the pricing trends we have seen. We will have to see if prices increase or stay the same, but there are only so many things I can do as Minister. I cannot instruct factories to pay more. There is a quality assurance bonus of 12 cent per kg and there is an out-of-spec bonus, negotiated and agreed in principle between farming organisations and factories in the Beef Forum last November. Farming organisations are not happy with the money offered but the agreement also said it would operate on a cost neutral manner. This has not happened as there has been an extra cost to it. I cannot get into the space of negotiating price. Anytime I do mention price I seem to get a letter from the Competition Authority. The whole reason for needing beef producer organisations is to have bodies to negotiate price on a weekly basis. That will be a very good development.

Quality assurance makes sense for farmers also. If factories sell meat for a higher price, because it is associated with safety and quality, then farmers get paid more.

Comments

No comments

Log in or join to post a public comment.