Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

I thank Deputy McNamara for raising this important issue. I spent considerable time discussing the issue with the IFA this afternoon. The value of Irish beef exports was estimated at almost €2.1 billion in 2013. This export performance, which was based on a wide portfolio of customers, has contributed significantly to higher returns for Irish beef in recent years and reflects the success of Bord Bia's marketing strategy and its focus on the key attributes of Irish beef, namely, environmental sustainability, grass-based production systems, full traceability, quality assurance at all stages of production and superior eating quality. I am committed to developing a policy framework that fosters innovation and promotes efficiency and improved performance at all levels of the beef supply chain.

Aggregate cattle supplies at Department-approved meat plants to early February 2014 are up 7% on the corresponding period in 2013, with strong increases recorded in the steer, heifer and cull cow categories. This higher throughput has led to factories giving preference to certain types of stock that are better suited to the requirements of their retail customers.

Prices for prime steers and heifers have remained relatively stable but the young bull trade is challenging at present as age and weight issues continue to affect demand. However, I note that the young bull kill increased by 60% between week one and week six of 2014. The Irish beef sector is hugely dependent on exports and needs to ensure that it is producing efficiently for overseas markets.

One of the main difficulties in marketing young bulls older than 16 months is that these animals are outside the specifications preferred by the UK market. This is a major disadvantage at present because the UK market has effectively become the highest-priced beef market in the EU and it is where we sell most of our beef.

Delays in young bull slaughtering undoubtedly put pressure on producer profit margins but neither I nor any agriculture Minister can interfere in a trade that is cyclical in nature and prone to short-term price fluctuations. Of course, I am entirely sympathetic to those farmers facing difficulties in getting their cattle slaughtered at a price that will allow them any margin at all. In our discussions today, I gave a commitment to ask the CEOs of the meat companies concerned to come into the Department to have a blunt conversation to find a way forward that farmers can accept as fair and that factories can maintain an acceptable margin on, and I hope to do that within the next day or two.

It is the responsibility of the industry - in the first instance, processors and farmers working together - to manage the type and volume of cattle being brought to market so that the supply chain operates for the benefit of both parties and does not undermine the viability of bull beef production systems for either winter finishers or suckler farmers. I understand that producer and meat processor representatives have recently engaged in dialogue with some initial progress being made, but I can vouch for the fact that there is much more progress required in this area.

I fully recognise that we need to maintain confidence in the beef sector and earlier this month I announced the operational details of an investment package worth up to €40 million to beef farmers in 2014. This package will include €23 million for the beef genomics scheme, €10 million for the beef data programme, €5 million for the beef technology adoption programme and €2 million in residual payments under the suckler cow welfare scheme. That being said, we have a genuine problem in the bull beef sector which is now translating into a problem in steer beef and heifer beef also. Producers, that is, farmers, are growing ever more frustrated by this. I will do what I can to assist in the process but, ultimately, both parties concerned will have to find an acceptable solution moving forward.

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