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

Ms Sinéad McPhillips:

Yes. In terms of the vision for the suckler sector, the lack of profitability in suckler farming is not a new issue. Some 20 years ago, over 100% of suckler farm income came from payments, which were really headage payments and coupled payments that were based on retaining the animals. Since decoupling in 2003, people have generally persisted with their existing farming systems. Suckler cow numbers have decreased but probably more gradually than we would have expected if we were just operating on the basis of the economics involved. The Department would like to support the sustainable, efficient and profitable development of the sector through policies to increase competitiveness. It would also like to act as a regulator in order to ensure that food is produced to the highest standards. Obviously, food safety must be the basis of everything we do.

A couple of specific questions were asked about beef from dairy. The Department, in conjunction with Teagasc, ICBF and others, and the meat and dairy processing industries, is currently examining greater integration in the supply of beef from the dairy herd to complement the existing supply of high-quality beef from the suckler herd. This involves looking at areas in which the dairy industry can work together with the beef industry to improve the quality of beef coming from the dairy herd, improve breeding, calf rearing and management practices and the genotyping of beef progeny from the dairy herd.

There are also initiatives, as I mentioned, such as discussing with DG Agriculture and Rural Development the possibility of achieving geographic indication, GI, status for Irish beef. GI status is not the answer in the context of profitability but it would be a significant selling point in some markets, particularly when it comes to future EU trade negotiations. Bord Bia and Teagasc have also considered developing a standard for grass-fed Irish beef and dairy. Again, the standard would be a significant selling point in certain markets.

Many members commented on Irish prices versus those in other member states. We acknowledge that such prices are a difficulty. My opening statement was very much focused on Food Wise 2025 and the beef sector because these are the main topics of discussion for today. We acknowledge that Irish prices have been at a low level, particularly in the final quarter of last year and coming into this year. Irish prices did not enjoy that uptick that normally happens towards the end of the winter season and this has been a difficulty for farmers. We acknowledge that and are making every effort to provide support to the sector, particularly through the BEEP scheme that was announced in the budget and launched recently. I stress that the closing date for applications for this scheme is next Friday. The scheme is really good, although the payments relating to it are modest. It will provide farmers with a cash injection and really detailed information on the weaning efficiency of their suckler cows thus enabling farmers to make better decisions. If people are hesitating, I urge them to submit an application. I ask Ms Dunne to comment on the application process.

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