Mr. Cormac Healy:

Chairman, if it is all right I will touch on some of the issues. The information published by the Department of Agriculture, Food and the Marine and Bord Bia shows that the price in Ireland today is still at the upper end of European prices. Deputy Éamon Ó Cuív mentioned the comparison with the UK. The chairman, Mr. Ciaran Fitzgerald, has said we are selling cuts. Some 50% of our overall beef, not the full carcase of an animal, goes to the UK; there is mix right across Europe. We are very lucky to have the UK market, which is the world's highest beef price market, on our doorstep. Obviously, the industry has focused significantly on it, in terms of marketing Irish beef and Bord Bia has focused its resources significantly on the UK market. There is no question but that it is a huge and invaluable part of the overall mix, but it is 50% of the mix and the other parts of the animal, the other cuts, are going across all markets and, therefore, it is relevant. We are exporters on the edge of Europe into the European market and we are performing well beyond many other beef markets because we are exporting 90% of what we produce.

Clearly, if one goes to markets such as the UK which has a self-sufficiency rate of 70%, or Italy at 50%, or France or Germany, they have major domestic beef production that is achieving their premium price in their markets.

I was asked the price fall since January. The report on prices is published each week by the Department of Agriculture, Food and the Marine. The price for R grade steers was about €4 per kg or €5 kg in the first week of the year. The last published price from the Department - not for last week - was €4 per kg. They have come a little, but that is a 5 cent to 6 cent fall. The Deputy asked for prices that include everything, "in spec", "out of spec". Those are the reported prices. We are happy to provide any of those to the committee in correspondence. They are published and are available.

The issue of specifications was raised in a number of questions. The industry has not been out there encouraging bull production. The Food Harvest 2020 report and the beef activation report - we are happy to provide those reports but I am aware the committee dealt with them in great detail at the time - clearly point out that the view of the industry and, I am sure the view of Bord Bia if asked to present to the committee, has been that steer heifer grass-fed beef is the direction for the Irish beef sector. It has been the mainstay of its progress in European markets and will be for the future. In regard to bull production, recognising that farmers were moving in that direction to some extent, looking for the obvious efficiencies that go along with it, and also recognising the fact that we are going to have an increasing dairy herd in the country, it was clearly stated that this should be done in conjunction with processors.

Much as people might like to talk about angst or mistrust, producers are working with processors in great numbers. They are producing either bull beef to a particular specification or producing beef under various other schemes, depending on the breed of the animal and other factors. There is significant work, co-operation and co-ordination between producers on the ground and their local factories. The advice on bull production has always been that if producing outside the under-16 month age guideline, which reflects the retail specification in our largest market for beef, the United Kingdom, production should be carried out in conjunction with the processor. This must be achieved at an early stage, not a month before the animals need to be slaughtered. Some companies have worked more on bull beef sales because they have particular customers on the Continent. They engage from the very earliest days with producers. They advise them on nutrition and the production system, and they schedule in producers. There is no question about clarifying that.

Specifications are ultimately derived from what the consumer requires and from what retailers require in terms of delivery to consumers. Much of this relates to the size of a steak cut, for example. If the retailer wants a trade involving two strip loins or fillets of a particular weight and at a particular price point, that is what is required. A strip loin that is too big must be cut too thinly to make the weight and therefore it is not what anyone particularly wants. The demand is ultimately derived from what retailers require, although there is some variation. What we have sought to do regarding in-spec and setting out the details is describe the types of animals that will meet the requirements of the vast majority of customers. This is because those are the animals that will ultimately secure the greatest return.

I was asked what we can do in future. Deputy Colreavy asked about what we can do to improve in this regard. There is no question but that there is always room for improvement. Over recent years, the beef technology adoption programmes have been progressing. They are funded by the Department. Farmers, with advice from Teagasc or private sources, are attending discussion groups focusing on what they are producing, costs, etc. We have tried to feed into these and engage with those involved. On many occasions, the groups visit factories to examine the process. Around the time of the quality payment system, QPS, we engaged very much in demonstrating what occurs when one breaks up an animal. In fairness, although the producer supplies an animal to the factory, it is sold in the form of a vast array of cuts. We can and continue to demonstrate the process. Equally, the industry is committed to setting out what it believes to be the specification that will meet the vast majority of customer requirements across the United Kingdom and European markets and that will, as a consequence, have the best chance of delivering on price.

There have been no particular labelling changes. Deputy Éamon Ó Cuív mentioned that an animal born, reared and slaughtered on the island of Ireland is Irish. Unfortunately, if it is slaughtered in Northern Ireland, it is slaughtered in the United Kingdom according to EU regulations, and this must go on the label. We did not make the rules; they are European regulations.

Reference has been made to the live export trade. It is part of the overall sector. We represent an industry that has invested in infrastructure, sales and marketing teams, people and jobs in this country, and we make no apology for saying that. We want to see cattle that are born and reared in Ireland processed here and brought to the adult stage with full added value, thus supporting fully Irish jobs and the economy. Live exports can operate, and if they operate on a fair playing pitch that is fine. However, we are not going to engage in a discussion on whether one should promote live exports. Over the past five years, live exportation has not been a driver of the progress in the sector. Therefore, it has the role it has, but it is not something from an industry that wants to see investment in infrastructure and jobs on the ground. We do not believe it is the future for Ireland. The future for Ireland must be in adding value in food production and producing shelf-ready products, rather than exporting produce before it has achieved its full potential. That is a general view on the matter. There are those whose jobs rely on this.

I may not have hit on some points but I will revert to them.