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)

Photo of Marcella Corcoran KennedyMarcella Corcoran Kennedy (Offaly, Fine Gael) | Oireachtas source

I thank the representatives for coming. As members of the committee, we are here because we are deeply concerned about what is happening in the beef sector and we agreed to examine what needed to be done to achieve the targets set in Food Wise 2025. We use the word "sustainability" a great deal, but there is no harm reminding ourselves that not only must we consider environmental and social sustainability, we must also examine economic sustainability. I have not heard much that is positive from people I know, the farmers, young and old, who talk to me about the economic sustainability of what they are doing. Only last week I was talking about the matter with someone who had come to my clinic. He was deeply shocked by the state of his finances. He was in dire straights and being saved only by his off-farm income. When we, as public representatives, hear these stories, we must ask ourselves hard questions about economic sustainability and how we can make recommendations to ensure farmers will be able to make a living in doing what they want to do and what they do best.

There has been much talk about the Competition and Consumer Protection Commission. Has any of the representatives had any engagement with it on this issue? Has any of the organisations conducted research into the profit levels of meat processors?

Many young farmers are anxious about the investment they will have to make and it looks as if they will not make any money from farming. Does the IFA have figures for the numbers of farmers who are switching to forestry, or renting out their land?

A suggestion was made about the appointment of a public authority related to the European Commission directive on minimum common standards of protection. The directive is about re-balancing power in the food chain, something I think we would all welcome, but I wonder if our guests have ideas about which public authority should be designated. Should it be the Competition and Consumer Protection Commission, CCPC, or do they have other suggestions for which authority might be suitable to play that role?

Which groups have been treated unfairly by processors and what measures are needed to give them additional protection?

Our guests from the Irish Natura and Hill Farmers Association talked about feedlots. I was interested in what they said because they mentioned what was happening in the USA. Ireland has built its reputation on grass-fed beef production. What will be the impact on it of the move towards feedlots? We certainly know that the producers are feeling the impact in their pockets. When did it become the norm to use feedlots? Clearly, it is a way to control what is happening. The CCPC may be able to look at them.

Agri-forestry was also mentioned. I would like to hear a little more about the extra supports our guests think those involve in agri-forestry should be getting. The Committee on Climate Action had a long discussion about not saddling certain counties or farms with the responsibility of growing forestry to a figure of 20% of land cover. There was a suggestion each farm should take on the responsibility of planting half an acre or an acre. Is that the kind of thing our guests are thinking of? I am curious to hear the answer to that question.

I ask the representatives from the Irish Creamery Milk Suppliers Association, ICMSA, about the recommendation they made about VAT rates on farm incomes because of the high costs involved. What rate did they have in mind and how would it be achieved?

We need to look at the issue of economic sustainability. Do our guests think the model will have to change based on what is happening?

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