Michael McCarthy (Cork South West, Labour) | Oireachtas source

The beef sector plays a hugely important role in the rural economy, supporting some 7,000 processing jobs. Profits are spent locally. It has been calculated that for every €1 of output produced on cattle farms, an additional €1.49 is generated in the local economy on foot of the multiplier effect. We must ensure this important and vibrant sector has a bright future.

Between Bord Bia and the meat industry, a good job has been done to support and promote Irish beef and open new markets, including Japan, Singapore, Egypt, Iran and, soon, Lebanon and Namibia. The Minister expects to gain access to the United states and Canada in the next six months and intensive work is being done in China and Korea also. That said, the Irish farmer has had to put up with a great deal in the past couple of years. There has been a disproportionate shouldering of the burden, with rural areas hit particularly by the recession. Difficult budgetary decisions have impacted, as has the fodder crisis. Recently there have been flooding problems which have, by and large, affected those who are the subject of the motion. There is a genuine fear among some that the future is not bright.

One sees the level of profits which continue to made by processors and supermarkets. There is nothing wrong with this provided the farmer gets a fair share. The profitability must be spread in as fair a manner as possible. It is clear that there is a lack of true competition in the market, which is harmful to the economy and livestock farmers, in particular. There is a mystery surrounding the pricing arrangements arrived at between plants and their retail customers and it is a significant issue. Courtesy of the Department and Teagasc, there is total transparency when it comes to quantifying every cost incurred at farm level. The same cannot be said about meat plants and supermarkets, which situation must be rectified if beef producers are to have any confidence in the meat industry. There is a fundamental need for farmers to receive realistic prices for the beef they are producing.

The past few years have confirmed the extent to which producers are reliant on the direct support payments they receive from Brussels. In four out of five years the single farm payment has been the funding stream which allows most livestock enterprises to break even. If the situation is left unchecked, it will do more harm than any scheme or subsidy could ever hope to remedy. On the recent campaign trail I went to a bull beef producer whose shed was full of animals. He has been encouraged to build up his herd, but there is now no return to be made. It is exceptionally frustrating for farmers who were encouraged to increase production to find that suddenly the market is not as was promised.

This is a significant challenge for the Government, particularly in terms of the bull beef crisis, which is severe.

If it is not confronted, it will get worse. The biggest loser will be the Irish economy because we will not see people staying in the industry and we will see turnover, with new people getting into it.

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