Oireachtas Joint and Select Committees

Tuesday, 16 April 2019

Joint Oireachtas Committee on Agriculture, Food and the Marine

Future of the Beef Sector: Discussion (Resumed)

Photo of Tim LombardTim Lombard (Fine Gael)
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I thank the Chairman. I would like to welcome the witnesses. We are having this debate on the future of the beef industry in relation to Food Wise 2025, and that is probably the core issue. Where do the witnesses see the beef industry going in ten years' time? Do they see it killing 20,000, or 30,000 or 40,000 cattle and where will the profitability of that industry stand then? That is what we are struggling with at the moment, and anyone who is involved in rural agriculture would realise that, based on the beef industry and the feeling of the beef farmers themselves, they are moving away from a suckler herd. Can I ask MII if there was a scenario where the suckler herd decline continued at the current rate, with large numbers of suckler farmers moving to dairy, how well would the industry survive on Friesian cull cows, Angus heifers, and Angus bull calves? Would that be a profitable market, and a profitable industry for MII to be in, and would it be sustainable going forward for the entire beef industry itself? That feeling of where the industry is going and the road it is on seems to be a major issue. I would say from talking to farmers on a regular basis that the larger beef farmers are moving away from beef farming at the moment. How do we change that, or how do we manage to curb it?

A very interesting presentation was given by Macra na Feirme. This is the only sector not tied into any contract regarding when animals are purchased or when they are sold. Does MII have any proposals, along those lines, of working with those in the agricultural community to give guarantees regarding prices and quality, so they can work towards the market themselves, and deliver on that market? If young trained farmers, which is who we are trying to promote, were given something to work towards, I am sure they would do that? Has MII any proposals to bring to the table, because the document that it has given us does not give me a blueprint going forward, or a plan of where this industry is going to be in ten years' time? We know where it was previously, and we have seen large increases in production, large unrest on the beef farming side, and a decrease of many thousands in suckler herds. It has not worked in many ways. The kill has definitely increased, and was heading towards nearly 40,000 at one stage, but the profitability, or the ability of beef farmers to sustain it is the big issue. That is my question for MII. In ten years' time, where do the witnesses see us? Where do they see this industry? Will slaughterhouses be working on Friesian cull cows and Angus cattle, or will there be a suckler herd? If there is a suckler herd, how will that be sustainable going forward?

In regard to the Beef Plan Movement, I wish it well in its approach to becoming recognised as a farming organisation. It has debated, worked, and created a momentum around this issue. Can I ask about MII's affiliation with exporters, and calf exporters in particular? I attended a meeting in Bantry, and certain people at this meeting were there too. The witnesses have quoted what calf exporters are saying, so do they think there is a conflict between their organisation and calf exporters, if they have such communications? Take into consideration that there has been a reduction in the levy for calf exporters, from €4.50 down to €1.20, they still fail to provide any lairages themselves on the Continent. It took that money, put it into its back pocket, profited from it, and still looked for more. Is there a conflict with that kind of association with people who should be doing more to get calves off this island? Some would argue it will have deflated the price of calves four weeks ago, to a dramatic point in my part of the world. There was significant anger when we had calves being sold for very small amounts, and we think there was a cartel at some stage there. Has the MII's association with them damaged the beef movement? The witnesses might respond to that point, if they can. I thank the Chairman.