Oireachtas Joint and Select Committees

Tuesday, 14 May 2019

Joint Oireachtas Committee on Agriculture, Food and the Marine

Future of the Beef Sector: Discussion (Resumed)

Mr. Martin Ryan:

That is correct as it stands today, and that is one of the things we want to set out to try to move. In the first instance, people will shift towards using more beef sires. Then we get to a point where sex semen will play a role but an improvement is required in technology. The next step after that is to try to have a heavier weighting within the EBI on the beef value of the actual dairy offspring, because those animals are transferred to a different farmer. It is looking at it from an industry value perspective as opposed to within the farm gate.

On the closed loop piece, as demonstrated by the premium piece, clearly somebody wants it and is prepared to pay for it. The closed loop to us is certainly fundamental to the programme. It is definitely the genesis of the ability to pay collectively and deliver that premium over the market piece. It is a combination of ourselves, the customer and the processor. It is, substantially, the customer who is making that contribution. That is what they want. That is what purchasers, as in major retailers and others, want.

I had an engagement recently with a company called Eco2 in the UK with regard to what work it is doing on the carbon area in the context of where we are today and the issues in Ireland. By a mile the greatest level of work it is doing is for retailers in terms of looking to produce what it can sell on the market as a lower carbon footprint beef product. That is where its heart and soul is today. The alternative to doing something is to stay where we are. We definitely want to try to avoid that.

From a customer perspective, it is infinitely easier for them to audit one supplier than to audit 20, 30 or 40 in the supply chain. They just find that impossible to do today. The steps we are taking today form, first and foremost, a potential opportunity to build a block chain within the beef industry here. That would certainly add value and markets down the road. Particularly when one goes towards Asia, that is a big requirement in their minds there for the future development of it.

As Mr. O'Dowd highlighted, the number of cattle, even at 50,000 down the road, is about 2.8% of last year's national kill. It is a very tiny piece but it is symbolic. It demonstrates a potential and a different model for people to look at as well.

On the fertiliser piece, and this is the last piece we considered in this regard, not because fertiliser is different or better than anywhere else because it would be substantially the same, the big challenge with fertiliser, which members will come across in their climate debates and others, is to ensure we use the right kinds of fertilisers to manage carbon footprint. There is a huge impact from nitrous oxide in that regard where we slowly release nitrogen and so on.

One of the comments made by Deputy Penrose was to do with prescription medicines. They are not included. Our whole focus in this programme is prevention of the use of medicine through vaccination and other approaches. It is very much about reducing that part.

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