Oireachtas Joint and Select Committees

Tuesday, 19 February 2019

Joint Oireachtas Committee on Agriculture, Food and the Marine

Future of the Beef Sector in the Context of Food Wise 2025: Department of Agriculture, Food and the Marine

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail) | Oireachtas source

I am not a member of the committee and, therefore, I appreciate the opportunity to ask questions. I will try to not rehash what has been said. I welcome the report, which provides us with an opportunity to discuss the issues and voice our opinions.

The beef sector is in crisis. Coming from a rural area, this concerns me. In counties such as Roscommon and Galway, agriculture is still the backbone of communities. Many families and communities rely on the farming community. I am sure the witnesses will have heard it said that when farming is going well, the towns and villages are going well because farmers tend to spend the money they make. Following on from what was said by other speakers, there is within the farming sector a level of disbelief regarding the future of the sector. This calls for radical action and a radical plan. In most cases, cattle prices are down at least €100 on what they were this time last year. Taking into account all the costs incurred by farmers, production is not sustainable. The beef plan group is making significant progress in attracting thousands of members. This shows that the sector is in massive crisis and that people who have been involved in farming over a long time do not want to let go. They want to continue farming and to be successful at it. I attend a lot of meetings and what I am hearing from farmers is a level of despondency that concerns me.

The Chinese market is good. I welcome any efforts made by the Department, the Minister and An Bord Bia to access new markets. My understanding is that access to the beef market in China will not be significant on the basis that Chinese people like fresh beef, not frozen beef. While there will be a market for some frozen beef, it will not be significant. Nevertheless, it is welcome. Another big issue for farmers is that of control of the beef industry. Farmers are of the view that they and prices are being controlled by a super power. In recent times, the C&D Food plant in Edgeworthstown, County Longford, where a by-product of farming is used, was taken over. The new owner of the plant is a major player in the business throughout the British Isles and Europe, which points to one person controlling this business. This is frustrating for farmers.

I am often struck by the lack of respect of factory owners for the farmer's point of view. They tend to openly dismiss farmers when they have an issue about price or the future of the sector and they do not engage. When there is a crisis in a particular sector of the economy, engagement is necessary. It seems that farmers are being slapped down by big business and told to take what they are being given. Relations are poor between the farmers and factories in this country. I blame the factories for this because at times their approach towards the farming community is arrogant. There is no engagement on the part of the factories and this needs to be addressed.

Bull prices were mentioned. German, Italian, Spanish and French farmers are getting prices way in excess of what Irish farmers are getting. The prices Irish farmers are getting are not sustainable. Increased funding is needed for the suckler cow sector.

There is no need to repeat that if farmers rearing suckler cows go out of business, the beef business will collapse.

As Senator Mulherin outlined, climate change is a serious challenge and concern for the farming community which we have to address quickly.

Without significant intervention by the Department in the beef sector, the crisis will continue and more people will leave the industry.

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