Tom Hayes (Tipperary South, Fine Gael) | Oireachtas source

I thank the Deputy for giving me the opportunity to clarify the issue. The Deputy seeks to address the crisis in beef prices by facilitating live exports. The trade, whether to other EU member states or to third countries, serves a dual purpose in stimulating price competition for domestic cattle and satisfying a real demand in overseas markets for specific types of animal. It thus complements the processing beef trade by providing alternative market outlets, thereby underpinning the meat and livestock industry generally. Currently, two ships have been approved by the Department of Agriculture, Food and Marine for live exports to third countries. The facilitation of this trade by the Department is a key component of our strategy for the beef sector.

To date this year, exports of live cattle are up by almost 21,000 head or 23%, principally on the back of large increases in the calf and finished cattle categories. Shipments to Britain are up by 46% while live exports to Northern Ireland in the period amounted to 13,300 head compared with 11,335 animals for the same period in 2013 - an increase of 17% over the year. Indications from live exporters are that the higher level of live exports will continue, and live export volumes were further boosted by a recent shipment of 2,500 animals to Libya.

There are also acknowledged constraints in the trade of live cattle to Northern Ireland brought about by the marketing strategy operated by the UK retail chains regarding cattle born in the Republic but exported live for finishing and processing in Northern Ireland or Great Britain. The long-standing policy of those retailers that buy Irish beef is to market UK and Irish beef separately. This means that beef must be sourced from animals originating in one country - that is born, reared and slaughtered in the same country - thus decreasing the attractiveness of Irish-born cattle for Northern Ireland meat plants whose customers are large UK retailers. In addition, logistical difficulties arise when a small number of Irish-born animals are slaughtered in a UK meat plant. Under mandatory EU labelling rules, these carcasses have to be deboned in a separate batch and packaged and labelled accordingly, thereby incurring additional costs for the processor.

While Bord Bia has repeatedly raised the issue of stocking beef from Irish-born cattle slaughtered in the UK with British retailers over the years, there are no indications that their marketing policy is likely to be reversed soon. These are commercial decisions, of course. Nevertheless, Bord Bia, in its ongoing interactions with British customers, will continue to pursue all opportunities to maximise the potential of the beef and livestock trade with our largest trading partner. This will include a new €500,000 marketing initiative for Bord Bia to intensify its promotion of Irish beef in the UK and selected continental markets.

Despite what the Deputy said, the recent beef round-table conference in Dublin Castle on 17 April represented a very useful and constructive engagement opportunity from all sides of the beef industry.

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