Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

This has undoubtedly been a difficult year for the beef sector. Prices are down by about 10.5% on last year, which saw an all-time high. So, even though historically the prices at the moment do not look that bad when compared with the prices two or three years ago, certainly the prices that many farmers paid for store cattle last year on the back of very high prices has meant that this year many beef farmers are losing money or making very tight margins.

We are trying to do a number of things. First, it is important to say that I cannot set prices, but I can try to improve the structure of how the beef industry operates to increase the negotiating capacity of farmers. We are trying to do that specifically by setting up producer organisations in the not too distant future. We are in the middle of a consultation process on that right now and I would welcome feedback from Opposition parties on that. At the moment beef farmers, unlike those in the dairy sector, effectively negotiate on their own with factories when they bring animals in. We would like to set up producer organisations which would be legal entities, professionally run, representing 5,000, 7,000 or 10,000 beef farmers. They would negotiate with factories, probably on a regional basis so that they would have real bargaining power in terms of providing top quality animals at the right age and the right specification to get the best price possible for farmers. Of course there would be an ongoing negotiation with factories that would improve the communication significantly and deal with much of the mistrust that has existed between farmers and factories over the past 12 months or so.

We have also had a beef forum, as farmers are calling it. Michael Dowling completed a report for the second meeting. That report is being implemented where possible at the moment. We have increased the marketing fund through Bord Bia for Irish beef right across Europe.

There is a specific cross-Border problem, about which I am sure Deputy Martin Ferris will ask me later.

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