Oireachtas Joint and Select Committees

Tuesday, 23 January 2018

Joint Oireachtas Committee on Agriculture, Food and the Marine

Roles, Responsibilities and Key Programmes of Bord Bia: Discussion

3:30 pm

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour) | Oireachtas source

I thank Ms McCarthy and her colleagues for the presentation. I have always been a very strong supporter of Bord Bia. In a cost-benefit analysis it would stand up particularly well to external scrutiny. As Ms McCarthy said, it has played a pivotal role in ensuring we now have more than 180 markets. Are there others in the wider world, particularly Asia, which might present opportunities to diversify and Bord Bia could explore? In the context of Brexit, we cannot afford to rest on our laurels. What resources does Ms McCarthy think will be required in that regard? There is an international network of 13 offices which operate directly with client companies. Are more resources needed to ensure Bord Bia can penetrate and open up other markets? Even when the economy was on the ground, Bord Bia was not left behind because it was seen as integral to recovering lost and securing new markets.

Has there been any notable increase under the beef genomics scheme? I know that it is a recent development, but has it had any impact on the quality of beef products coming onto the market, which is absolutely critical? It is probably too early to say, but I hope it is having an impact because I am a very strong supporter of it.

Ms McCarthy is clearly concerned that the value of the UK market was undermined by third country imports. In that context, an initiative could be facilitated by a future agreement negotiated by the United Kingdom. Will she outline a view on the issue?

Would Bord Bia be in favour of an extended transition period to allow companies to bed in and meet demand in the market? Coming from a midlands county in which the level of beef farming is significant, there has to be a concern about the significant decrease, a little over 6%, in cattle numbers nationally. The figure has gone down from 917,000 to a little over 860,000, which is significant. It is the seed stock of the industry and I am sure the delegates are examining the issue critically. Even in County Westmeath, the figure is down by approximately 3%, while in County Longford it is down by approximately 5%. Some of the beef farmers in question are switching to dairy production. We can see the evidence and I am sure Senator Paul Daly will back me up. It would have been unheard of a decade or two ago for beef farmers to switch to dairy production. Is there any way to reverse the trend, perhaps by making payments based on meat yields, with top prices guaranteed for the heavier U and other carcase grades which present a significant difficulty for some farmers, particularly in the midlands, who try to finish cattle in the best way possible? That has to be a concern; otherwise we will not have seed stock and be able to compete in many markets. We have increased significantly the quality of our beef stock. Not too long ago, only one in four animals was of sufficient quality to achieve the price charged by supermarkets across the European market.

These are matters about which I am concerned and we have to keep our eye on the ball. If the seed stock drops away, I know that there is an argument that the suckler cow subsidy should be restored which might be one way to address the issue, but it may not be the only way to ensure it. Making payments based on meat yields might be a more positive way to achieve the same result with reference to the economic return for farmers.

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