Oireachtas Joint and Select Committees

Thursday, 21 November 2013

Joint Oireachtas Committee on Agriculture, Food and the Marine

Live Exports: Discussion

12:35 pm

Mr. John Bryan:

I buy cattle in different marts. Before I am allowed to lift my hand, I must give my bank details to the mart. I cannot just turn up in a mart in County Roscommon or County Kerry and buy cattle. I must ring a few days beforehand and provide my bank account details in order that they can be cleared. It is a good practice.

Deputy Willie Penrose asked a few very good questions. The most important point is on competition. We need some competition. The numbers of births have reduced by 100,000, whether dairy or beef cattle, while live exports are up by 50,000. In 2014 there will be a major reduction in the suckler herd and we expect to be down by another 100,000. That will put more pressure on the factories to pay for them. Competition is essential and the life of all trade. It is no good unless the lad lifting the hand is paying for the cattle.

Retention of title works very well within countries and we have experience in the case of grain. In cases where perishable products leave the country, we recently had the case of the Waterford chickens, in which farmers got badly burned. Export insurance sounds like a simple solution, but the last time the Government looked at the issue, it would have lost £500 million. For the Government to underwrite a system under which I could sell to anyone, regardless of whether he or she could pay, sounds simple, but it would be reckless of it to do so. European competition law and WTO regulations prohibit the Government from subsidising companies. We are fighting with the Americans over the subsidising in which they are engaged. The company involved pays 80% of the cost and the government subsidises it. Europe is taking the United States to the WTO because it is illegal under international law to subsidise. It tends to encourage reckless trading.

We need prudent dealing. Deputy Tom Barry spoke earlier. There must be a tighter supply of cash and we must be careful about those to whom we give credit. This applies to farmers and agribusiness. It is putting pressure on the banking system and there is no easy fix. The Minister, Bord Bia and farming organisations, particularly ICOS, have roles to play. Bord Bia has staff in Italy and Spain. Ms Cecelia Ruiz works in the Spanish office and if she was asked whether she would sell cattle to certain people, she would say she would not sell them chicken. A prudent attitude in knowing about business is required. John Keane works for Bord Bia in Italy and I do not know whether people ask him with whom they should do business. I agree with those who suggested Bord Bia had a greater role to play in this regard.

With regard to Deputy Luke 'Ming' Flanagan's comment, we all agree that the British market is at our back door. I have been a cattle farmer for many years and it was not always that way. Japan and Italy were always the highest priced markets, but today it is the UK market. Ten years ago a top quality heifer made more in Italy than anywhere else in the world. Today England offers the best price.

Why is there an animal welfare issue? It is because well funded groups in England are absolutely against live exports to any level. They played a part in stopping our live exports to north Africa. They lobbied substantially in the European Parliament to bring export refunds to an end. The day Ireland's exports to north Africa were stopped, they were replaced by Australian exports that had to travel for six or seven weeks when Irish cattle only had to travel for six days. The animal rights groups are acting in a reckless fashion and it makes no sense. Unfortunately, they are very well funded.