Oireachtas Joint and Select Committees

Tuesday, 9 April 2019

Joint Oireachtas Committee on Agriculture, Food and the Marine

Future of the Beef Sector in the Context of Food Wise 2025: Discussion (Resumed)

Mr. John Enright:

It was suggested expansion of the dairy herd was responsible for the price of beef being obtained. I do not agree, but there are certainly things which should be improved on the dairy and beef production side of things. However, the number of calf registrations is down by 5,000 head, while live exports are up by 50,000. Bord Bia estimates that the cattle kill in 2019 will be down by 50,000 head. The expectation is that fewer cattle will be slaughtered in 2019 than in 2018. The numbers of steers and heifers are down by approximately 10%, while beef cow prices are down by 17%, all because of Brexit. It has nothing to do with the fact that the dairy herd has expanded, rather it has to do with a lack of confidence. Some 52% of our beef goes to the UK market. We were supposed to be out of that market on 29 March and could be out of it on 12 April. There is a lack of confidence in the sector. Brexit is the major reason for the fall in beef prices. Farmers, whether finished cattle producers or producers of weanlings or stores, are wondering what is going to happen to our major market. There is concern that while support has been promised which is to be welcomed, there is a lack of detail behind it. Confidence must return to the sector for those who are producing calves, weanlings, stores or finished cattle. There is massive uncertainty. The European Council is meeting tomorrow and there is a deadline of 12 April. Will there be a new deadline? That is the big issue in beef markets.

It has nothing to do with the expansion of the dairy herd and it is unfair to say it does.

Unfair trading practices have been mentioned. There has been a welcome step in the right direction in that regard. The reality is more needs to be done, not just on the beef side but also on the dairy, sheep and tillage side, etc.

I do not disagree with Mr. Joyce in his comments on the cartel operating in the beef sector. The issue is how to establish the facts on beef pricing. With the European Union Milk Market Observatory, if a dairy farmer rings me tomorrow to ask, based on his or her co-op's product mix, what he or she should get for a litre of milk, I can make a fair observation on what the price should be. The Milk Market Observatory gives the price of skimmed milk powder, butter, whey powder, whole milk powder and the range of dairy products. However, if a suckler cow or beef farmer rings me and I look at the European Union Meat Market Observatory, there are no such data. People can say there is a cartel or there is not, but we do not know because there are no data available. I know the carcase price in Ireland and different European countries, but I do not know the price of sirloin or fillet steak, minced meat, burgers, etc. as there are no data available. If we do not get into that detail, we will be having the same conversation in 20 years' time. That is my honest opinion on the matter. We can talk about cartels, but unless we have data, it is only talk.

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