Dinny McGinley (Donegal South West, Fine Gael) | Oireachtas source

I wish to convey the apologies of the Minister, Deputy Coveney, that he could not be in the House to discuss this important issue.

To set the context, in February last year, the Minister announced the launch of a beef technology adoption programme, BTAP, as a key element in driving the ambitious targets for the beef sector in Food Harvest 2020. Based on the discussion group model, the programme is intended to provide participants with the knowledge and the skills necessary to reduce costs and increase profit margins on their beef farms for which there is significant potential. While engaging in the discussion groups, participating farmers develop business plans which will enable them to set targets and track progress over the three years of the programme. Annually, participants also undertake two tasks, from a menu of eight, to assist them in improving performance in a number of areas at farm level.

The beef sector is a critically important part of the economy from an employment and export earnings point of view. It is playing an important role in Ireland's economic recovery, as is the food and agrifood sector generally. Mindful of this, the Minister made €5 million per annum available to fund BTAP, which is designed to run for three years, from 2012 to 2014.

The Minister believes that for the sector to reach its development potential, farmers must take steps to improve profitability. This means focusing on better management at farm level, improving breed quality, reducing the negative impact that poor animal health can have on efficiency, and ensuring they produce the kind of animal that the market requires.

The Minister is confident that this programme can provide an important stimulus to standardise on Irish farms the kind of focus on profit that is necessary to make a success of any business enterprise.

The beef sector, which had an excellent year in 2011, with a 15% increase bringing the value of exports to €1.8 billion, again grew significantly in 2012 when the value of exports increased to €1.9 billion. However, there continue to be challenges to be faced, particularly given the financial pressure on consumers arising from an extremely difficult global economic environment. It is for this reason that a continued focus on producing high-quality beef while maintaining competitiveness is critical for the sector. It is self-evident that the industry can only grow and develop if that growth is profitable for the primary producer and this programme can play an important role in ensuring that is the case.

In first year of the programme, while a total of 6,563 applicants had initially been accepted into the programme having been confirmed as satisfying the programme eligibility criteria, by the end of 2012, a total of 4,809 farmers involved in 440 discussion groups had successfully completed the first year, with €4.5 million paid to participants. The balance of 1,754 were found not to have to have attended the requisite number of discussion group meetings and-or had not satisfactorily completed the required two tasks. Appeals were subsequently lodged in respect of 600 of those who had not been paid and these are in the process of being examined. Some 101 have been confirmed as being eligible on the basis of the additional data submitted in support of the appeals.

The Minister remains ambitious for the beef sector and is confident that with a positive and collaborative approach from stakeholders the sector can build on its already excellent reputation. The sector is a key element in the Food Harvest 2020 Strategy and the BTAP is a vital tool in realising its great potential.

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