Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I welcome the opportunity to contribute to the debate on the beef sector. At the outset, I acknowledge the vital role the beef sector plays in the agrifood industry and, in turn, the major contribution agriculture makes to the Irish economy. I acknowledge there is a problem with beef prices at the moment.

Unfortunately, many farmers are going through a very difficult time. I have spoken to many of these farmers. The terrible winter last year, combined with the poor spring, resulted in high feed costs for farmers and the fall-off in beef prices we are experiencing now means that producers are simply not able to recoup the moneys they invested during the difficult period. We need to find a solution.

I believe what we need is a collective approach from producers, processors and farm organisations in order to address this matter. Currently, there is a lack of communication in the beef industry and this is in nobody's interest. We have two main players here, the processors, who are looking for security of supply, and the producers, who are looking for security of return and a reasonable margin. These groups need to come together if a solution is to be found. To this end, the Minister has held a number of round table discussions with key stakeholders. I welcome the fact the Minister and the Department are now considering legislation for the setting up of a producer organisation for the beef industry. This legislation could allow for groups of from 50 to 60 farmers to come together to use their power of supply to negotiate and agree mutually beneficial terms with the processors. We have seen this work very well in the mushroom industry, whereby producer groups can guarantee a continuity of supply to processors and in return, there is stability of price for the producer. I believe there could be similar benefits for the beef industry. This would help to provide an equilibrium of supply and help eliminate the peaks and troughs farmers experience in terms of price.

Price brings us back to the core issue of supply and demand. Beef is like anything else. When there is a shortage of supply, prices are high and when there is over supply, prices are low. Producer groups, in conjunction with the processors, could forward plans to try to even out these dips in the market. I reject some of the Opposition criticism regarding the Government's lack of supply for beef farmers. The Government has taken important steps to assist farmers with a €40 million package to beef farmers in 2014, including €23 million for the beef genomic scheme, €10 million for the beef data programme, €5 million for the beef technology adoption programme and €2 million in residual payments on the beef suckler cow welfare scheme.

As the Minister has said, the beef data programme will begin to issue in the coming week and this will come as a relief to many farmers who have been anxiously awaiting these moneys in order to meet outstanding bills. The Minister has far from washed his hands of this issue. He has worked tirelessly, as has the Minister of State, Deputy Hayes, to expand our export markets and we have seen this work has paid dividends, with the resumption of live exports to Libya last year. There was a further boost last week when the US Secretary of Agriculture stated that he fully expects trade will resume between Ireland and the US before the end of this year. Good progress has also been made in terms of re-entering the Chinese market. Opening these markets would be a huge boost and can only be positive for our beef farmers. As I said earlier, the Minister and the Government are committed to the beef sector and we must all work together to resolve the issues.

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