Bernard Durkan (Kildare North, Fine Gael) | Oireachtas source

Fluctuations, or peaks and valleys, in the beef or meat sector are nothing new to this country. Years ago, particularly after periods of firm prices, there tended to be a valley that severely punished the unfortunate people who found themselves exposed in those situations.

At present, there is considerable suspicion between various stakeholders. For instance, producers, processors and retailers raise the question of who controls prices apart from supply and demand. There is a certain amount of suspicion and we must spend time dealing with it. People in the beef business tell me that a cartel operates among the slaughtering facilities. I do not know whether it is true and I have no evidence to support it but the suspicion exists. Similarly, people tell me retailers have a controlling influence and there is considerable room for suspicion. In the US, the Government directly controls food prices, particularly beef prices, and sets the price on a weekly basis. There is advance recognition of the price for those producing, processing and retailing and for the consumer.

The peaks and valleys carry a major risk. Until there is some regularisation, if not a guarantee, of prices and expectations, we will continue to have these kind of issues. I recognise that the Minister and Minister of State are doing everything possible to ensure the market prevails in a healthy state.

From the point of view of economic recovery, it is also important that the product of the agricultural sector is well recognised on the international market, and that a good price is achieved by the producer so that, as a result, the producer is able to continue to produce product in the future.

The first disappointment concerned bull beef, which was referred by other speakers. In the expectation of certain things happening, producers decided to cater for a market they thought was there. It was not, and it disappeared almost overnight. It was hugely disappointing for those involved, who took a huge financial loss. The producers are sore and vulnerable as a result. I would like to have the contentious issues examined in an analytical way, with a view to ensuring we address them in the future.

See this speech in context