Dáil debates

Wednesday, 25 June 2014

Beef Industry: Motion (Resumed) [Private Members]

 

7:45 pm

Photo of Michelle MulherinMichelle Mulherin (Mayo, Fine Gael) | Oireachtas source

I welcome the opportunity to contribute to the debate. I refer to the data relating to deadweight prices.

In 2010, when Deputy Ó Cuív was a prominent member of the Government, the deadweight price was €291.40 per kilogramme compared to today's average of €379.51. Although many beef farmers are put to the pin of their collars, they have invested a lot in their animals. Government policies and organisations such as Teagasc have encouraged them to hold onto their animals. Given that 50,000 excess animals must be disposed of between now and Christmas, it is no wonder the price is depressed. Beef consumption has decreased. In the UK, our nearest neighbour where we have traditionally had a significant position, consumption has decreased by 8%. UK farmers are developing their own beef and have taken advantage of cheap grain to fatten up their animals. It is quite a predicament.

The main priority is to develop new markets and I compliment the Minister, who is in the US. We already have market access to countries such as Japan, Singapore, Egypt and Iran, and there are ongoing negotiations with the US and Canada. We need more markets for our live exports. Although live exports have increased, they must increase further. Farmers are under pressure and need our assistance and support.

Factories seem to be full of excuses for declining to pay farmers the top price for their animals. Factories do not hesitate to impose penalties to reduce the price per kilogram and, naturally, this has an adverse impact on farmers. The issue of price fixing by factories has been thrown around by farmers and in general discourse. A farmer who phones different factories on a Friday will get different prices; on Monday the farmer will get the same prices from different factories, whether they sell to Italy or to Tesco in the UK. Why is this the case? There is abuse of a dominant position, which the Competition Authority must address.

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