Charlie McConalogue (Donegal, Fianna Fail)
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I thank all three organisations for taking the time to come here and putting together their very comprehensive submissions.

When looking for a viable future for beef, the key objective must be price. Profitability will provide the sector with a future. We must ensure there is a profit margin which unfortunately is not now the case and has not been for a significant time. If that continues into the future, there will not be a big future for beef. That the sector continues to grow and that it has a future must be our key objective in the options we consider here.

All the organisations have mentioned the differential between our price and that of the UK, our main market, how that has been there for some time and how it has increased recently. Will they comment further on that and how it can be addressed? Obviously, Brexit hangs over everything and can radically change everything, but if that market stays open to us, do they see capacity for that to improve?

I am also interested in their views on our own processor price versus the European average prices, which is our next market after the UK. There has been an issue over the last year when we have fallen below the European average. The beef processors, who have been before this committee, have argued that they tend to pay in, around or slightly above the European average but that has not been the case. They have big questions to answer on that.

On unfair trading practices, I am interested in the potential of any of the regulations and proposals put forward at European level recently to improve transparency in the beef sector.

The removal of milk quotas has had a significant impact on our beef sector and has led to additional cattle coming from the dairy herd. I would be interested to hear the three organisations' perspectives on recent breeding practices within the dairy sector, in particular, where we have seen Jersey crosses coming into the system, for which there seems to be no outlet, market or little thought given regarding their place within the beef sector. The removal of quotas has also resulted in increased pressure and competition. We are seeing more cattle coming from the dairy herd and also more competition for land because existing dairying enterprises can expand and new people can go into that area but they need land to do that. That puts pressure on the availability of land for the beef sector. There is now that opportunity but only for those who can afford to do so, and it is not an option in many parts of the country, to move into another sector.

Do the three organisations believe the meat grid should be reviewed, reopened and reconsidered? I would be interested in their perspectives on an announcement in that past few weeks by Glanbia and Kepak regarding dairy bred beef and providing a contractual outlet for those. Do they consider that contract pricing could be developed and that it would offer more certainty to the primary producer? Do they consider that the beef data and genomics programme should remain a feature of the next Common Agricultural Policy? What role, if any, should it play? Would they support it continuing as a scheme?

I made the point at this committee previously that were suckler beef farmers to stop producing beef and were payments to them to remain the same, the one sector in the food and economic chain in rural Ireland that would not be much worse off would be the beef farmers because they are not making a margin from all the hard work they put in. They create massive revenue and turnover in rural economies. The money is circulating and staying within the area, and maintaining jobs in the wider economy but the beef farmers are not getting a return for their produce. That is not sustainable. What potential do the three organisations see in having a premium for suckler beef? The representatives of the meat industry will appear before the committee next week. While we might say there should be a premium for suckler beef, they have told us that when they deal with their customers they are not seeing it. I will put this question to them next week. How much potential do the organisations see in having a premium for suckler beef because without it, it will very hard to find a margin which will keep the sector healthy into the future?