Jackie Cahill (Tipperary, Fianna Fail) | Oireachtas source

As the Chairman noted, Bord Bia has produced a document here in which there is no mention of live exports. I asked a parliamentary question two or three weeks ago specifically focused on targets for the last six months of the year for live exports, particularly cattle of six months and over. I wanted to know what target had been set for the last six months of 2019. The Minister stated that in respect of Bord Bia, no target or figures were being set for the last six months of the year. I just cannot understand this. I sat on the board of Bord Bia for six years. If we got a new market somewhere or other, there was always a target as to how much beef we intended to get in there. We have heard of this market and that market being open for live exports but the reality is that very little stock is moving. We see a boat of 3,000 bulls the odd time, or this or that, and there is big fanfare about it but there is no competition at the ringside from live exporters. It is not happening.

Mr. Burke talked about breeding a better calf, keeping calves at home, rearing them, sexed semen and so on. The problem is that at the back end of this year, our kill reached 40,000 head and the price we were getting is just not viable. I have never seen such despondency among beef farmers as is there at present. When Bord Bia or anyone else produces a document on the beef industry - I can see targets of growth of 20% in comparison with the baseline figure - what must become compulsory is one for the primary producer as to what the return on beef farming is per hectare. The return on beef farming has dropped and dropped significantly year in, year out.

One of the biggest challenges facing the beef industry is our single farm payment. Beef farmers are completely dependent on it and there will be one hell of a battle to maintain it in the future. What worries me most of all in Bord Bia's statement is the beef price in Europe. We cannot blame anyone for that but it is the reality we must face up to. Ms McCarthy noted that across continental Europe, cattle prices are also behind last year's levels and the average price of R3 young bulls stands at €3.65 per kilogram. Has an analysis been done as to how the European beef farmer is able to survive at such a price? His or her cost of production cannot be lower than ours. If it is, there is something seriously wrong with the way in which they farm on the Continent. One would imagine that the cost of production would have to be significantly higher. If European farmers are able to produce beef at that price and make a viable return, we are in a cul-de-sac. How are Europe's farmers coping with such a price? How are they able to take it?

Ms McCarthy raised the challenges being made against the health of red meat consumption. The dairy industry has a promotional body, the National Dairy Council, one of the main roles of which is to defend and promote the health aspects of having dairy in one's diet, which it has done very successfully. Fifteen years ago, if one touched butter or cheese, it was deemed to be absolutely detrimental to one's health. I think Dr. Nelligan was the first man to come out and say that dairy in a balanced diet was essential for one's health. That battle on the dairy side, in my view, has been won. Very rarely now do we see negative comments about a balanced diet containing dairy. Does the beef industry now need a similar body to take on its opponents and the people who say that if one eats a steak, one is hammering a nail into one's coffin? The dairy industry has defended itself exceptionally well. Does the beef industry need to go down a similar route?

Bord Bia is focused on the family farm tradition in Ireland and has spent €4 million on this campaign. Again, how much scrutiny would this stand up to now? We saw figures for January and February this year. The figures that come to my mind are the amount of cattle coming out of our feedlots and the amount of cattle being sold into factories by agents. Were one of our major customers to come in here and examine our figures, how many of our cattle would now be coming to the slaughter from family farms? It is grand to portray the image but if some of our opponents took us on, to what extent can we stand over this in the future? Our factories are fattening a lot of their own cattle now and the percentage seems to be growing. Again, to what extent can we stand over selling ourselves as producing this green beef in a family farm tradition now? The perennial chestnut in this regard is beef classification and the grid, about which there is huge dissatisfaction. Technology has moved on. I read an article just this morning which stated that it has been, I think, ten years since the grid was introduced. It has been in operation for ten years. I was quoted in the article as being as critical of the grid ten years ago as I am now, so at least I am consistent in my views on it. With the advances in technology, surely there should be improvements in the technology in respect of the way in which the grid is done and the animal classified. The amount of grazers on the grid is one thing but farmers are inherently unhappy with the classification and they rightly or wrongly feel they are not getting a fair crack of the whip on it. I acknowledge the witnesses will say to me that Bord Bia has no role in this, which I accept as its job is the promotion of beef, but this is undermining farmer confidence and must be addressed.

Turning to the positives, Ms McCarthy said beef consumption will rise, especially in Chinese markets. I was surprised by the figure in this regard. She said consumption will grow by more than 20% within the next decade and that Asia will account for half of this increase.

Will people have the same food tastes as ourselves? Will the top-end or quality cuts be in demand in the Asian markets? Will it be the lower end of the market that the increased tonnage will come from? If so, then there will not be the same return for farmers. What growth in price will the market realise? There is mention in the presentation of swine fever. There has been an impact on pig prices here. There are only 360 pig producers left in this country and for the first time in a number of years they are starting to get a reasonable return for their endeavours due to the outbreak, but swine flu will come and go in Asia. Will that market return a price that will make it viable for us to supply produce?

Climate change poses great challenges for farmers. We have 2.5 billion cows in this country and the figure is rising. There is a focus on climate change and a couple of weeks ago a climate emergency was declared in the Dáil. Whether we like or not, agriculture will be the prime target for the reduction of emissions. Does Bord Bia believe we can win the argument with the general that we can produce beef from suckler cows in a climate-friendly way? That is a major challenge because there will definitely be pressure on the agricultural sector to reduce emissions. Does Bord Bia believe we can convince the public and make it sound credible that we can produce beef in an environmentally friendly way? It will be a significant challenge to reduce substantially the emissions produced by the agricultural industry.

I am disappointed by the lack of focus in the report on live exports. I am disappointed by the lack of targets for the rest of the year. Live exports and the number of calves are at record levels. Therefore, the number of calves exported this year will have no impact on the supply of cattle in 2020. The number of men who are deciding to hang up their boots as regards beef farming is increasing rapidly. I do not know how farmers on the Continent can produce a product at €3.65 a kilo because there is definitely no economic return for us here. Let us consider the family farm tradition, the National Dairy Council, NDC, equivalent and the lack of focus on farm incomes in presentations.