Mr. Ray Doyle:

I would like to comment on the situation in the United Kingdom. We have investigated this issue on numerous occasions. We first investigated it three years ago. As recently as three months ago, we went to England to reignite the UK trade. Prior to the advent of EU Regulation 1760/2000, hundreds of thousands of animals were shipped live to the United Kingdom, in respect of which no issue arose. Irish cattle were much sought after in the United Kindom. Implementation of the regulation and various statutory instruments at national level has greatly hindered that trade. Because of labelling issues, cattle born in Ireland and subsequently shipped to England or Scotland lose their identity. They become nomads. Under the regulations, the sellers of this beef, the multiples, etc., can no longer call it Irish or UK beef and it ends up being sold at discount prices to the catering trade. That is a problem. The labelling issue has begun to hinder trade. As stated earlier, it would be much easier from a credit point of view to travel to the United Kingdom by aeroplane or boat to collect a debt in respect of which a problem has arisen.

The second impediment is that a handful of Irish companies involved in the slaughter of Irish cattle are also involved in the slaughter of a sizeable proportion of UK cattle. They will actively resist any feed lot owner in the United Kingdom buying large quantities of Irish born cattle and finishing them. Perhaps it is an issue of market segmentation from their point of view and that of the multiples. During our trip to the United Kingdom three months ago we obtained photographic evidence which indicates that Irish beef - cattle born, raised and slaughtered in an Irish plant and subsequently sold to a UK multiple - and British beef - cattle born, raised and slaughtered in England - are being sold at the same price per kilo, yet there is an almost a €200 difference between the price Irish and British farmers are getting. Normal economics of supply and demand override these difficulties and we see sizeable amounts of Irish cattle being sold and finished in England. However, the impediment in this regard is EU legislation. Perhaps with the assistance of the committee and the Government, a bilateral arrangement between Ireland and the United Kingdom could be put in place. Currently, it is easy for players in the market, either Irish processors or multiples here or in England, to hide behind an EU regulation, thus interfering with the economics of supply and demand.

The British sector can only meet 55% of its beef needs. Ireland exports 80% of the beef it produces. In other words, we produce 500,000 tonnes of beef, of which 260,000 tonnes is exported to the United Kingdom in carcase form. We are then forced to find export markets for the remainder - alive or dead. All of these problems are linked. Our exporters have to find different countries to which to export, in respect of which the need for credit difficulties may arise, including, as mentioned, north Africa and Italy. Farmers in Ireland are being forced to find markets for live and dead cattle, one of the pivotal points which solidifies in the credit issue being discussed. The issue I have highlighted is a major one that needs to be addressed.