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

I move amendment No. 1:

To delete all words after “Dáil Éireann” and substitute the following:“notes:

— the importance of the beef sector to the economy, demonstrated by the 8% increase in the combined value of meat and livestock exports in 2013, rising by €245 million to reach €3.3 billion;

— that the beef sector performance has already surpassed the Food Harvest 2020 target by 18% and has almost reached the Beef 2020 Activation Group revised target of 40%;

— that total live exports to date this year are over 150,000 head, of which 25,000 went to the UK, an increase of 14% on the comparable period in 2013;

— that beef prices have weakened since the high of 2013, but prices in Ireland still remain above the EU 15 average; and

— that there has been evidence of weakened consumer demand due in part to competitive factors from other meat products;

recognises that the beef sector remains a priority for Government in terms of support of agriculture and that a number of actions have been taken by the Minister for Agriculture, Food and the Marine to date to deal with current challenges including:

— a round table on the beef sector has met on two occasions bringing together farm organisations, beef processors and relevant State agencies to discuss recent challenges;

— a ‘Beef Pricewatch’ online tool to make price information more accessible and free of charge to farmers is being developed;

— legislation for the recognition of producer organisations in the beef sector is being developed and a consultation with key stakeholder groups will commence shortly;

— Bord Bia has allocated €0.5 million to expand and target promotion of Irish beef through its campaigns in the UK and in certain continental markets, added to the annual overall beef marketing budget of €9 million;

— the Dowling report has been completed and recommends a simple and transparent system of price recognition for animals within market specification based on the Quality Payments System, with a bonus to incentivise production to optimal market specification;

— the Report also calls on processors to ensure that communication with farmers on any changes to market specifications takes account of the normal production cycle;

— Teagasc, Bord Bia and the Irish Cattle Breeding Federation are working together to ensure that advice, education and breeding policy remains consistent with evolving markets; and

— the Minister for Agriculture, Food and the Marine discussed beef trade challenges with his Northern Ireland counterpart, Minister Michelle O’Neill, at a recent North-South Ministerial Council and discussions are ongoing in this regard; and acknowledges that:

— significant commitments have been made by Government to invest in the beef sector through a revised Common Agricultural Policy negotiated by the Irish Presidency of the EU worth €12.5 billion to the Irish agrifood sector;

— €295 million is programmed for the Beef Data Programme and the Beef Genomics Scheme under the Rural Development Programme, RDP;

— the new agri-environment scheme, GLAS, will provide for a total investment of €l,450 million over the lifetime of the RDP, significantly benefitting beef farmers;

— in 2014, €40 million is being invested in the beef sector through the Beef Genomics Scheme, the Beef Data and Beef Technology Adoption Programmes;

— targeted on-farm capital investments will also be provided to suckler farmers through the new RDP;

— market access has recently been achieved for beef in countries such as Japan, Singapore, Egypt and Iran; in 2014, access terms have been agreed with the Lebanon and Namibia; inspections and negotiations are ongoing in regard to the Chinese and Canadian markets; and, after a significant diplomatic and technical effort, the United States Food Safety and Inspection Service will shortly be auditing Irish plants with a view to allowing beef access to the US;

— the Minister for Agriculture, Food and the Marine is currently embarking on a very significant trade mission to the US regarding beef access and negotiations on the Transatlantic Trade and Investment Partnership; and

— the US Secretary for Agriculture, Mr. Thomas Vilsack, and senior Chinese representative Mr. Liu Yunshan both visited Ireland last week to discuss beef trade issues and other agrifood opportunities.”

Developing the beef sector for the betterment of the 100,000 Irish livestock farmers has been a clear priority for the Government since taking office in 2011. I am the first to acknowledge, as does the Minister, Deputy Coveney, that prices are down on this time last year, mainly due to 2013 being an exceptionally high year for beef prices in Ireland. The price per kilo was €3.79 in 2014, €4.07 in 2013, €3.86 in 2012, €3.46 in 2011 when we came to power, and €2.90 in the last full year of the previous Government.

Prices are matters to be determined between purchasers and sellers of cattle and it is neither appropriate nor possible for me to intervene directly in this issue. The days of market intervention are gone. My focus is on developing the potential of the beef industry, and expectations that I can intervene in the price relationship are misplaced. It is disingenuous to say that I can intervene. The relationship between processors and farmers is an interdependent one. Farmers and processors always fight their own corners to get the best prices.

It is important to acknowledge market evolution in recent years. In 2013, the performance of the beef sector was strong, with output of over 518,000 tonnes, an increase of 5% over 2012. The value of beef exports increased in 2013 by 10% to €2.1 billion. Irish beef prices were 106% of the EU average in 2013 and, notwithstanding recent fluctuations, remain above the EU average. Beef prices are under pressure all across Europe and especially in our key market, the UK, which takes almost 50% of our beef exports. Three weeks ago I compared the UK prices in Sainsbury's supermarkets to ours. The managers of those supermarkets told me we are consistently under pressure in their supermarkets and there is a strong determination by the UK National Farmers Union that they sell only UK beef. That is a real problem which we, as a country, should work together to change in the next few years, if possible.

As Deputies will be aware, Food Harvest 2020 outlines a strategy for the development of Ireland's agrifood industry, including the beef sector. My clear focus has been and will remain on delivering on the actions necessary to allow the beef sector to deliver on the targets it set for itself in Food Harvest 2020.

It is important at this point to acknowledge the significant existing Government support for the beef sector, contributing towards its development. During the Irish Presidency of the EU, the Government negotiated a CAP package worth €12.5 billion to the Irish agrifood sector, which will see considerable investment within the beef sector. It was acknowledged by almost everybody in the country including the farming organisations and those involved in the industry as well as those who witnessed the performance of the Minister in the talks at first hand. The geonomics programme in the rural development plan is worth up to €52 per year for farmers. Last week at Grange, the determination of farmers to change the industry was evident in the large number of attendees. I attended and saw their determination first hand. In 2014, there is €40 million of national Exchequer funds for the beef sector through a range of schemes. I am pleased to note that €10 million in payments commenced today to farmers under the data programme announced last year.

Deputies will be aware that in response to recent issues, the Minister, Deputy Coveney, 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. This initiative was intended to provide a useful forum for all main players in the industry to engage positively and present constructive ideas on positioning the sector to address current challenges. Discussions at the second round table included presentations from the ICBF, Bord Bia and Teagasc with the main focus being on the presentation by Mr. Michael Dowling, who had updated his work on the implementation of the beef activation programme. Under no circumstances did Mr. Dowling at any stage recommend a regulator for the industry. In his report, Mr Dowling recommended improved transparency and timely communication on price and market specification between suppliers and processors and consideration of possibilities for more formalised contract arrangements between factories and their suppliers.

On transparency, my Department has made a number of improvements to its website in order to facilitate farmers. Arising from the round table discussions, I announced an additional allocation by Bord Bia of €500,000, which brings its total international marketing spending to €9 million. I urge 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 to find mutually satisfactory solutions to the current crisis. I acknowledge with everyone else that we face a difficulty. We need to co-operate.

There is a misconception out there that no live exports are taking place. My Department attaches considerable importance to the live export trade. Total live exports to date this year stand at more than 150,000 head, of which 25,000 went to the UK, an increase of some 3,100 head. These are the facts. There are live exports and the Government will not stand in the way of them. In fact, we will encourage live exports wherever possible.

We are in ongoing dialogue with our Northern Ireland counterpart, Ms Michelle O'Neill. I have met her twice in the past three weeks and the Minister, Deputy Coveney, has met her on several occasions. There is no issue about meeting her. We will meet her tomorrow morning if it will help. The reality is that the issues are difficult to deal with. What we need is a proactive relationship with everybody to ensure we increase profits for farmers. As a beef farmer myself, I acknowledge the difficulties that exist. However, we will not get results when we condemn the Minister for Agriculture, Food and the Marine, who goes to the United States of America and who is currently walking around its supermarkets to deal with the issues. Last week, a Chinese representative visited to help us. We need co-operation and support, not condemnation of the industry.

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