Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

I thank the representatives from IFA for attending. I welcome the president and his team. I recognise the work done by the organisation in commissioning this report and the work of those who contributed to it, namely, Professor Thia Hennessy, Dr. Justin Doran, Professor Joe Bogue and Dr. Lana Repar. It is a valuable assessment of the challenges and difficulties facing the suckler sector now and that will continue to face the sector in the short term.

I would like the witnesses to flesh out a number of matters in more detail. The first of these relates to the return for farmers.

There is no doubt that margins in the sector are very low and that beef suckler farmers have had to farm very well in order to make a profit. However, it has the largest number of farmers of any sector and very many people depend on it. Figures published in today's edition of the Irish Independent indicate a nationwide drop of 11% in suckler cow figures from 2012 to last year. In my county of Donegal, the herd number decreased from 45,000 in 2012 to its current level of slightly more than 39,000. Unlike some southern counties, there is no significant transition into milk farming in Donegal, so the decrease indicates that people are starting to keep fewer cows because, unfortunately, they do not currently perceive a profit margin in the sector.

What impact do the factories have on the margin that farmers receive? It appears that whenever the numbers go up, the factories squeeze their margins. The factories defend themselves by indicating that they pay a European average price.What is the IFA's perspective on the role of the factories in the food chain and the passing on of margins? Is the increasing number of cattle going through feed lots in recent years having an impact on the margins that farmers receive? Does the beef grid need to be looked at again and addressed, particularly in regard to the many farmers who believe they are missing out on proper payments and also in regard to how the quality assurance scheme is operated and the many instances in which farmers are not paid the quality assurance despite having followed the pertinent rules?

We have discussed on many occasions the need for a €200 payment per suckler cow. The IFA has campaigned very actively on the issue. Fianna Fáil has been very proactive and brought a motion proposing that payment before the Dáil early in the summer, as the witnesses are aware. The payment would be made from Exchequer funds. In terms of how it should be applied and implemented, what would be the best way to deliver it to farmers?

Climate change is a continuing challenge which will become more significant in the coming years. What do we need to start doing differently in terms of suckler cow farms in order to address climate change? The smart farming initiative pilot scheme in which the IFA has been very involved has shown that gains can be made without impacting on production. What additional measures can be taken in the suckler cow sector to contribute to reaching our climate targets without affecting production?

The unfortunate reality is that unless we ensure a proper margin for suckler farmers, production will drop. That has been the trend. Unless that trend is addressed, it will continue. The need for a premium for suckler cow beef was mentioned. How much potential is there for such a premium? In recent years, British multiples in particular have been quite happy to use beef from the dairy herd for steak cuts and shelf cuts. Some 50% of our beef goes to the British market. How can we obtain a premium for suckler cow beef? Is there potential in such a measure and, if so, where?