Charlie McConalogue (Donegal, Fianna Fail)
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I welcome the representatives of the ICSA and Macra na Feirme and I thank them for their presentations and contributions to the committee's hearings on the future of the beef sector.

There are two key ways beef farmers earn their income. One is the CAP, which is important and essential. Obviously we can identify the current challenges in terms of funding and the need for that to be maintained before the next CAP comes into play. In most cases in the beef sector it is 100% of net income. That is how crucial it is. The other side is price, and I am anxious to hear the representatives' thoughts on how we can get a better deal and return for farmers and, indeed, a margin for farmers in respect of their beef enterprises and the work they do daily to produce beef. There are a couple of key issues in that regard on which they could elaborate. First, there is the price differential between the price paid by processors in the Republic and the price paid in the UK. What are their thoughts on why that exists, how it can be addressed and whether it is possible to tackle it?

We will be meeting with the meat processors but when we have met them previously they have always made the case that the reason for the differential is that the UK is not self-sufficient in beef and therefore its beef producers are able to get a premium over non-British beef. Even though our beef is of exceptionally high quality it retails at a lesser price. They also point to the fact that only three of the seven main multiples in the UK stock Irish beef on their shelves. What are the representatives' thoughts on that? We must seek to increase the price our farmers get. The highest value market we have is the British market and that differential is always exceptionally frustrating for farmers because it shows the price that can be paid for beef and the price they are not getting for their beef.

There is also the European average price for beef and how we compare with that. In recent times we have been under the price but at other times we were above it. Outside the European Union one is into less-value markets, by and large. Europe is 102% self-sufficient so it is a saturated market to an extent. How can we get higher prices and where can we get them? How do we go about doing that? Also, what are the representatives' views, further than what was in the presentations, on the impact of feedlots in terms of the prices paid on the domestic market? What should be the approach to them?

Can they give further details of their views on what reforms are needed in the beef grid? What is their view of a new initiative put forward in recent weeks by Glanbia in association with Kepak in respect of dairy bred beef? In addition, what is their view on the beef data genomics programme and its role and value in the beef sector? Do they believe it should be continued?

People often refer to the fifth quarter and farmers needing to get a return for the fifth quarter. What are the representatives' thoughts on that? In my view the farmers are not getting paid for any quarter, but the focus tends to be on them not getting a return for the fifth quarter. That market has developed in recent years. Previously, there was no value on it but now there is. However, farmers say they do not see any additional income coming to them from it. They are not getting a proper return or value for the other four quarters either. It is a significant issue so will the representatives elaborate on their views on that?

I have a particular question for Macra na Feirme on the views of its young farmers with regard to beef. There has been little to no good news in recent years in the beef sector. That is why we are here today, to see what the future can be and how we can provide a viable future for the sector. Does Macra na Feirme see many of its younger members going into sole beef enterprises? Certainly, the majority of young farmers we see are going into dairy and, to a lesser extent, tillage. What are the views of its membership on the future of beef?