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 Pat DeeringPat Deering (Carlow-Kilkenny, Fine Gael)
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I thank the Deputy. Before I go back to the witnesses, I want to ask a couple of questions. There is no doubt that the beef industry has been going through a very difficult stage for the past while. It did not happen today or yesterday, even though it has probably become more prominent in recent times. We need a long-term solution. It could be a populist move to come up with a short-term solution, but we could be back here in a year or 18 months talking about the same issue. Unless there is a definite roadmap for the future for the beef industry, we will be in serious trouble.

We need to concentrate on three specific areas. First, what can be done on the home farm to make it more efficient? Second, what can be done in respect of the processors to make the process more transparent? Third, what can be done by the retailers to make it more transparent in terms of getting as much as possible back to the private producer? That is where the body of work needs to be done. Everybody has diagnosed the problem and we could spend hours rehashing that, but from what I can see and listening to the submissions today and those made on the previous day, there is no silver bullet in terms of addressing this issue.

The only way to address it, and I would like to have comments on this, is to have everybody working together in a constructive manner. The beef forum may not have been the perfect solution, as suggested earlier, but I agree with Mr. Healy that we are better off sitting around a table to try to find a solution to the issues. For example, if the quality assurance system is not working, we have to try to find a solution to make it better. If not, we have to look at finding a more efficient and transparent way of getting the most for the primary producer, which is what it is all about. That is a key point.

In terms of the CAP, we are facing a challenge to try to maintain the budget. I would like to hear the witnesses' views on that. There is no doubt that we all want a fully funded CAP budget, but we also know that it will be a challenge. What are the witnesses' views on where the emphasis should be in the new CAP? Should it be on trying to target the moneys to make sure we get a fair and adequate price for our products?

I have noted recently that the live exports for this year have increased a good deal year on year compared with last year's numbers. In recent years it was predicted that we would be in this situation with the increase in the cow numbers once the milk quotas were abolished. Anybody with a bit of knowledge of the issue would have been aware that a challenge was coming down the line that had to be addressed. We probably did not prepare enough for that challenge. Live exports have increased a good deal. We need to be able to make sure that is sustainable into the future. What do the witnesses believe we can do to make sure that is sustainable for the future?

There has been much talk about the 30-month age limit. In a recent parliamentary question, I asked about the 30-month age limit and the reply was: "The following third country markets have veterinary health certificates with a 30-month age limit for Irish beef." We are looking for export markets time and again, which is crucial, and these countries want a 30-month age limit. They are China, Japan, Iran, Algeria, Saudi Arabia, Turkey, Qatar and Switzerland. Egypt and Singapore also have a 30-month age limit for bone-in beef only. I also asked about the penalty and the reply was: "Non-compliance with these conditions could result in the plant concerned being removed from any lists to export to that market or the closure of the market."

That is a serious situation. If those markets are closed, what will be the alternatives? Much needs to be teased out before we throw out specific issues. More markets are needed and it is all about competition. If we do not have competition, we will not be able to achieve anything. We export so much and have depended on the Great Britain market until now but there is currently a challenge in that regard. To replace the 40% that is being lost in the beef sector, alternative markets must be found. They must be developed in a transparent way to ensure that everybody is able to do it together.

Given the challenges, it is now more important than ever that farmers are not pitted against one another. That is a dangerous road to go down because we have seen over the years that a farmer can be his or her own worst enemy, and it is important that does not happen in future.

I welcome comments.