Dáil debates

Tuesday, 18 February 2014

Topical Issue Debate

Beef Prices

6:45 pm

Photo of Michael McNamaraMichael McNamara (Clare, Labour) | Oireachtas source

I greatly welcome the fact that the Minister acknowledges there is a problem and that he will do what he can. He mentioned that there was an increase in bull beef killed in the first weeks of this year but no doubt part of the reason for that was that, normally, beef prices increase in the run in to Christmas, this year they did not and many farmers were holding on in the hope that the prices would inevitably increase although they still have not done so. The factories are aware there is a glut out there and they intend to take advantage of it. That is one side of the coin.

The State has consistently stepped up to protect the sector because it is hugely important, and a facet of that sector is the factories. When the factories were in trouble last year with the horses, we stepped up. The Dáil was reconvened during the summer to protect one group which now enjoys a dangerously dominant position in beef, both here and in the United Kingdom, which is a considerable market.

The Minister mentioned that retailers are not interested in this type of beef, and that is true. The unhealthy power that retailers, particularly the large multiples, enjoy is something that we have worked on in the Joint Committee on Agriculture, Food and the Marine. I note Deputies Doyle and Deering here today and we all put a great deal of work into that. Not surprisingly, there has been a certain backlash from lobbyists and other groups. Those retailers have an unhealthy power to determine and, ultimately, they can decide that they will increase or drop prices whereas farmers have to plan two or three years ahead. As I stated, farmers made plans a year or two years ago to increase bull beef production because they were told that was the thing to do and now they are losing money because of it.

Notwithstanding all of that, I greatly welcome the fact that the Minister is calling in the CEOs of the processors to a meeting. I would ask whether he would consider bringing in a farmers' representative to that meeting as well, if that is feasible.

In the longer term, I would ask is there a way to find markets. I welcome the fact that there is a live trade being opened up through Stena but we need to increase the live trade to third countries outside of the EU. Every calf we export live, if it is exported to European markets, we face as competition to one that we rear in Ireland whereas if we can get them out to third country markets it is a different matter entirely. However, I welcome what the Minister has done.

My last suggestion, which may seem a little silly and many might find funny, applies to all Ministers. There are many of them going abroad. Maybe one item on each of their agendas should be whether there is a market in the state they are visiting for bull beef because, as the Minister stated, it is a particular market. British retailers, in particular, which are important customers for Irish beef, are not interested in it but that does not mean that there cannot be markets somewhere in the world, maybe even in Sochi, for bull beef. Who knows?

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