Séamus Kirk (Louth, Fianna Fail) | Oireachtas source

There are 100,000 farms across this country that depend on the beef industry. Out of that group, some farmers are full-time while others are part-time. It is very much down to the structure and fragmented nature of farm ownership that the change that is needed in this area has not materialised over the years. When we examine the industry here tonight, the various contributions will identify the serious loss that has taken place over the past 12 months. The beef industry has been in a serious downward spiral.

The beef industry has been an integral part of the Irish agricultural industry.

It is worth approximately €2 billion a year to the economy, a statistic which should not be underestimated. Over the past six months, beef prices have plunged by up to 20% while retail prices in the UK are increasing at the expense of the primary producer. Changes in the Internal Market through beef specification restrictions and the external market through trade barriers with the UK via labelling have combined to drive down prices. The Michael Dowling report recommends the establishment of an independent beef regulator which, as Deputy Ó Cuív indicated, we fully support and the opening up of Northern Ireland to live cattle exports. The Teagasc interim survey in 2013 revealed that beef producers earn on average €9,500 per annum. This crisis will be the last straw for many farmers. The bald statistics along with the minimum wage position in other areas in the economy graphically illustrate the needs of farmers.

Over the past 12 months, bull beef prices have collapsed with factories altering the age, weight and specifications required to slaughter cattle. Producers have been forced to accept losses of up to €300 per head. Teagasc estimates that producers need to earn €4 per kilo for beef to be economically viable in the long term. The current price of between €3.50 and €3.75 per kilo falls very much short of that requirement. A continuation of the present crisis will have profound implications for exports and employment in the sector. The Food Harvest 2020 strategy targets will not be met if prices continue to stagnate while the viability of the suckler herd is under threat if income levels are not increased. Without direct payments from the EU, beef farms would be out of business. The Michael Dowling report identified a number of issues needing urgent attention, including improved transparency, the potential for producer organisations, more formal contract arrangements between factories and suppliers, the small number of processors in the State and the cartel problem, which is a major difficulty for the industry.

The Minister must negotiate with his British and Northern Ireland counterparts. Northern Ireland has a Sinn Féin Minister of Agriculture and Rural Development in Stormont. There is a clear opportunity for our Minister and his counterpart in Northern Ireland to develop an all-island industry. The moment is now and let us get on with it. Live exports to the UK would provide the safety valve for an export-dependent industry. Let us empower primary producers in Ireland. The targets under the Food Harvest 2020 strategy will not be met unless there are radical changes in one of our most important industries. The time for change is now. The Michael Dowling report mentioned specific changes that are needed but, at the end of the day, we need to examine the overall position of the industry and realise where the dynamics lie and where the control and empowerment within the industry lies. We need change quickly.

It is difficult to believe that we cannot work towards a position where there is a much more integrated approach to the overall development of the beef industry in Ireland and the UK. There would be a mutual benefit for primary producers and consumers in both jurisdictions. Both ourselves and Britain are members of the EU and there is potential to develop a better, more coherent and more co-operative approach to the development of the industry to ensure its sustainability in the long term.

I call on the Minister to realise he must achieve movement on the issues I have mentioned because otherwise we will have no industry. Suckler farmers will go out business and our exports will collapse. They are worth €2 billion annually, which is of significant benefit to the economy and the Exchequer. It is vitally important that the Minister and the Department realise the importance of that statistic and move to implement the changes that are urgently needed.

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