Mr. Aidan Cotter:

In regard to the Deputy's first question seeking clarification on what the market wants, the United Kingdom wants steers, heifers or young bulls of less than 16 months. On continental Europe, where the market is principally for young animals produced as young bulls, we compete best with steers and heifers. Our differentiating factor on the Continent is that Irish beef is different as it is grass-based steer and heifer that has a different taste and superior eating quality. Ireland competes in this market and the industry - farmers and processors together - has built a very strong position on the continental markets based on grass-based steer and heifer beef.

The Deputy asked the reason cattle prices are higher in the United Kingdom than they are in Ireland. Half of our beef is exported to the United Kingdom, which has the highest price for beef in the European Union. The other half of our beef exports go to continental Europe where prices are approximately 20% lower than in the UK. The Irish price is somewhere between the price in the UK and continental Europe. We must also remember that the industry does not supply full carcases because markets and customers want cuts rather than full carcases. As a result, the cuts from a particular animal could end up in a range of markets. The composite price for Ireland is the sum total paid for all the cuts, which depends on which markets they end up in. For this reason, the Irish price is somewhere between the price in the highest priced market in Europe, namely, the United Kingdom, and the price in continental Europe, which is 20% lower than in the UK.