Willie Penrose (Longford-Westmeath, Labour) | Oireachtas source

I thank the groups for their excellent and informative presentations. I note Macra na Feirme carried out of a survey of young beef farmers, which is excellent. Today, we are discussing beef farmers. Macra na Feirme represents people from across the spectrum. A second year student of UCD of the late Professor Sheehy could have made an excellent presentation here today on beef. It is easy to identify the problems. We are trying to identify the solutions. Would Mr. Healy agree that the premise on which Food Wise 2025 was drafted is hollow? Has Macra na Feirme undertaken any analysis in that regard? The abolition of quotas in 2014 was a seminal event. Most of us could see what lay ahead. We had 1.38 million cows and we now have between 1.45 million. In a few years time, we will have 1.65 million, which is an additional 450,000 cows, every one of which will produce a calf. Most calves are not beef bred.

During last week's meeting I mentioned a study I carried out 20 years ago, which showed that only one out of four of the cattle that were being produced could penetrate the high quality marks at European level. I remember arguing that point and being told by the Dutch that they can breed black and white cows anytime. Is it not all about breeding quality for the market and legislative intervention to ensure the processors do not run amok, as usual? The processors do not intervene to help anybody. They are in the market for themselves. Would Macra na Feirme agree that steps should be taken to ensure that feedlots comprised of up to 7,000 animals do not get subsidies? The processors release to the market at various times to control prices. That is my view, but I may be wrong. Should corporations be receiving subsidies? Has Macra na Feirme given any thought to these matters? Anyone can diagnose, it is the solution that is important. These are the issues on which I would welcome a response from Macra na Feirme.

I note the ICSA is 25 years in existence. The ICSA owes me a clap on the back because it would never have got past its first year without my support. I supported it because there was nothing else happening in the beef area. I also assisted it in getting representation. I refer the witnesses to Mr. Pat Lawlor. He will be able to tell them who fought for the ICSA. Few Deputies were on its side at that time. I was proud to stand with the ICSA and I think it has done a good job.

At last week's meeting I mentioned that between 2009 and 2012 a suckler farmer with 87 acres could average a €12,000 plus return, approximately 100% of which comes from subsidies. That €12,000 has reduced to approximately €11,000, of which 107% comes from subsidies. When one adds inflation of 37%, this means that to retain the subsidies they got in 2009 the return needs to be €16,500. The train is going backwards instead of forward. We now have only approximately 850,000 suckler cows, having lost a significant number of them in the last couple of years. I am aware of this because my own county is bedevilled and losing out.

The abolition of the milk quotas was a significant event. It has to be factored into dairy expansion. I note people traditionally involved in the beef sector have moved to the dairy sector. I see a lot of merit in CAP payments being targeted to beef and suckler farmers, which are the low income farmers. As I said at last week's meeting, the objective of CAP is to preserve the maximum number of farm families on the land. Subsidies were not designed for millionaires or would-be millionaires. They were designed for the ordinary people who are earning only €400 per week and trying to rear a family on it. Has the ICSA examined the impact of the fifth quarter cuts and are processors gobbling up everything such that there is no return to the primary producer?

I would welcome the views of the ICSA on grading and the move to digitalisation in terms of machinery. I refer to the mechanisms that can take the subjectivity out of grading. I know that the ICSA is supportive of the qualify pricing system, QPS. Surely, it needs to be overhauled in light of the significant failures in the past couple of years. I would welcome the views of the ICSA in regard to a review of the QPS.

We can negotiate packages with Brussels but in the event of a hard Brexit there will be a depreciation in currency of approximately 20% to 25%, bringing the value of the euro to €1.10 or €1.11. Depreciation of 2% or 5% will increase the value of the euro to €0.90 or €0.91. Regardless of the outcome of Brexit, there will be a depreciation in currency, although I accept a hard Brexit would destroy the sector. How will the ICSA account for currency fluctuations of that level? It is best not to focus too much on the 53% of the British producers, which would make production totally uncompetitive and accelerate imports into the market. I ask the ICSA to propose two or three solutions that can be included in the committee's report. We are all aware of the factors. We need solutions that are credible and will gain traction when we put them forward.