Mr. Padraig Brennan:

In response to Deputy Fitzmaurice's query on growth in the dairy sector and the challenge it poses to the beef sector, the increased number of beef animals coming through from dairy herds is presenting a different challenge to the beef processing sector. However, not all of these animals need to be Friesians. Two thirds of calf registrations in recent years have been for Angus and Hereford calves. Focusing more on these breeds in terms of dairy animals that are turned into beef presents the beef sector with an opportunity to find better markets for that type of product.

As to the question of additional animals, live exports form part of the necessary mix. The Deputy is probably aware that the Irish cattle price, be it for a calf or a weanling, is not as competitive in markets in the Netherlands, Spain and so on as it was two or three years ago.

Regarding the limit of the weekly kill, we have been averaging at 32,000 or 33,000 head of cattle at this time of year for a number of years. It has not been a problem. What we have seen in the past year or two is more a reflection of the weakness in the European market. There is not consumer demand, whereas poultry and pigmeat have been more competitive, leading to a lower demand for beef. As the Deputy mentioned, this highlights the importance of new markets like China, if and when it comes on board. The US is now open to us. It will be a slower burn and a longer-term project than we envisaged initially but the more options we have available to us, the better the industry's position to handle extra animals. The industry has made considerable progress in recent years trying to find niche customers that can keep the average value higher than it would have been traditionally. There are challenges but we are in a better position than we were five years ago.