Mr. Brendan Joyce:

Deputy McConalogue made reference to the removal of dairy quotas and increasing the numbers of dairy calves. He is correct. Many beef farmers do not have the opportunity to diversify out of beef production. That cohort is under the most pressure. In developing the market work has to be put into the story. We produce product in a very particular way on the highest high nature farmland in Europe, but that story is not being told. It might place it as a premium product, but that story has to be developed by Bord Bia and the factories in order to sell it. There is a similar issue, albeit on a smaller scale, within the light or hill lamb market. For 15 years there was no such market and light lamb could not be sold, but with a bit of work it was shown that the story of that product did sell and connect with the retailer. That model, even though it is only a very small pilot project, has shown that there are examples from which we can learn. Those involved in the beef sector, in particular, need to develop that mindset to sell the story of where the product is produced and how it is produced and of the farm families who are absolutely dependent on it.

Historically, there has been a reliance, or over-reliance, on the UK market. A question was asked about the US and Chinese markets. Any diversification has to be welcomed. If one were to ask a farmer whether it had delivered, the answer would be no, but the opening of any new market has to be welcomed. We have to encourage and push the Irish story and the way our beef is reared into these markets to try to achieve premium prices.

Deputy Penrose highlighted the issues of grading and objectivity in that exercise. Most farmers feel powerless. The issue has to be looked at and we should legislate for it in order to bring objectivity to the process in order that farmers can have confidence in it. It should not be the case that they are left to pray for a particular person to be in charge of an abattoir on a given day.

A level of confidence has to be brought to the system.

Deputy Penrose mentioned convergence. It is true that it is critical for all family farms. In a very short space of time we have moved from having 300,000 or more farmers down to 100,000, which figure is going to decrease further. Farmers in receipt of low payments have been pushed out of the system. Convergence is a critical component of the CAP proposals. Farmers should be paid for their level of production and the environmental and public good they do. Looking back at the way payments were developed, I sold my suckler calves at six months. I did not avail of the 11 month, 22 month or slaughter premium. Many of the farmers concerned have been legislated against. We have sympathy for farmers with a small number of hectares with a high payment per hectare. We are in favour of increasing the disregard in a convergence model to support that process. The idea that the convergence model is not positive for many of the farmers we represent is incorrect and that myth has to be put to bed. The family farm is a critical component of our projections. We would much prefer if we were getting a proper price for our product.

We were asked whether there was a cartel in operation in the beef sector. Any farmer at the side of a mart ring would give members his or her opinion if asked for it. There are three processors playing the game; it is as simple as that. We are consistently running behind the price being obtained in the marketplace. Members can answer the question. The facts are there to be seen. Members might like to analyse the price obtained and who the players are. It is increasing. As much as I welcome the move between Kepak and Glanbia as a pilot project, as we welcome any move that might change the situation, we have to be very careful that we are not starting to build bigger cartels. I am not being critical of it - the pilot scheme should certainly be looked at - but there is a cartel in operation in Ireland. I have no problem in putting forward that view. Facts might be used to show that there is not a cartel based on a standardised measure of cartels, but ask any farmer standing ringside at a mart if he or she believes there is a cartel in operation and in 100% of cases the answer will be yes.