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

I wish to apologise for the absence of the Minister, Deputy Coveney, who is doing important work with Tom Vilsack, US Secretary of Agriculture. What the Minister is doing is trying to gain access for Irish beef to the American market. On Tuesday, we had a Chinese delegation here and the Minister's meeting on Tuesday and today's meeting with Tom Vilsack are significant for the beef sector.

I am acutely aware of the importance of the beef sector and sensitive to the concerns of farmers at this time. The current downward pressure on Irish beef prices is replicated in the UK, which is our main export market, and in other key EU markets. Against the background of the current concerns, the Minister met separately with representatives of the farm organisations, IFA, ICMSA, ICSA, and meat factories in February and March this year. More recently, he invited key stakeholders, including farm organisations, beef processors and relevant State agencies, to a round table discussion on the future development of the beef sector on 17 April and chaired a second meeting on 3 June.

There have already been a number of initiatives in the wake of this forum. These include the beef round table discussions, which will reconvene quarterly to exchange intelligence on market developments and forecasts particularly in regard to supply, demand, prices, product specifications and retail changes. The Minister has committed to launching a beef pricewatch online tool to make price information more accessible and free of charge to farmers. Work has commenced and already, as an initial step, the Department has improved its website in order to make price information more user friendly for farmers. The Department is examining the possibility of legislating for therecognition of producer organisations in the beef sector and will shortly be launching a consultation with key stakeholder groups in this regard. This initiative could provide a vehicle for collective action by farmers in a way that can give them the advantages of scale and market presence, as well as a useful vehicle for transferring technology and expertise to improve profitability at farm level.

Additional information not given on the floor of the House

The Department will prioritise its targeted on-farm capital investments for suckler farmers through the new rural development programme. In addition, Bord Bia has allocated €500,000 to expand and target promotion of Irish beef through its campaigns in the UK and in certain continental markets.

During the first beef forum, the Minister requested Mr. Michael Dowling, chairman of the beef 2020 activation group, to review the implementation of the group’s report, after intensive consultation with all stakeholders. That report has been delivered, and the Minister has asked round table participants to reflect on its recommendations.

On questions of price, these are matters for the market, and for negotiation between the contracting parties. It was recognised in the Dowling report, however, that there was a need for improvement in communications between processors and farmers on questions of price and market specification. In addition, the report recommended a simple and transparent system of price recognition for animals within market specification, based on the application of the quality payments system, with a bonus to incentivise production to optimal market specification.

Beef farms are the bedrock infrastructure of a critically important Irish industry and while suppliers are subject to the same market realities as others, it is important that their vulnerability to sharp changes in market conditions is recognised, and that the relationship between parties along the beef supply chain is carefully managed by the relevant commercial operators with this in mind. This is critical if supply is to be maintained and the beef sector is to perform to its potential in the future.

The key objective of the beef forum was to provide a vehicle, but not the only vehicle, to facilitate positive engagement between stakeholders in the beef sector, including processors and farmers. At this juncture, I would urge the stakeholders to reflect carefully on the proceedings at the first two meetings of the beef forum, and on the Dowling report, and to take time to engage with each other on its recommendations in order to find mutually satisfactory solutions to the current issues. It is clearly the case that the best interests of the industry will be served by honest engagement, transparency and clear communications, and by a recognition of the legitimate concerns of each of the parties.

As stakeholders are aware, the Minister has already committed to facilitating further engagement between stakeholders on the development of the industry, but it is neither appropriate nor legally possible for me to intervene on the question of price. In the meantime, there has already been a significant commitment by Government to investment in the beef sector through a revised Common Agricultural Policy negotiated during the Irish Presidency of the EU in 2013, including a single farm payment worth €1.2 billion to Irish farmers annually, through the Rural Development Programme 2014-2020, €295 million for beef data and genomics, and, in 2014, through the beef data, genomics and technology adoption programmes which will result in investment of some €40 million in the sector.

I will continue to ensure that the beef sector is a priority in the development of a policy and support framework for agrifood in the period ahead.

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