Paudie Coffey (Waterford, Fine Gael) | Oireachtas source

I apologise on behalf of both Ministers who, unfortunately, are unavailable as they are away on State business. As a former Minister, Deputy Ó Cuív will understand there are times when they cannot be here personally. However, I am here to take the Topical Issue and am happy to do so on their behalf.

As Deputy Ó Cuív is well aware, beef prices are matters to be determined between the purchasers and sellers of cattle. Prices are determined by supply and demand dynamics and by a range of different factors, such as consumer preferences, distance to market, consumer confidence, retail promotions, competition with other meats and the overall macroeconomic situation. The Minister, Deputy Coveney, like any other agriculture Minister in the EU, can have no role in influencing commodity prices paid to farmers. I note, however, that 2015 has been a relatively positive year for beef prices in Ireland with the yearly average to date up 8% on last year. Irish beef prices are also 105% of the EU15 average price for 2015.

The divergence in price between Ireland and Britain is a result of the exceptionally strong sterling exchange rates that have been in place for most of the year. It should be noted that, in sterling terms, prices paid to British farmers so far this year are broadly the same as previous years. In other words, British beef farmers are not gaining any more for their output than last year. However, as already noted, Irish farmers are receiving prices on average 8% higher than last year and, therefore, the price difference has narrowed and not widened, if one removes the influence of currency fluctuations.

It must always be remembered that comparisons between Irish and British beef prices have to take into account that we are both primarily selling into the British market where there is a consumer preference for their own British product. This preference for local product is true of almost every beef market in the world. This also means that there is pressure from the British beef sector on their retailers to prioritise their produce over imports from abroad, including our Irish beef. This is a significant competitiveness challenge for Irish beef which cannot be overlooked when comparing prices.

Notwithstanding these challenges, the most up-to-date figures from the CSO show that this year, we have exported more than €100 million more beef to Great Britain compared to the same period last year. This is a prime example of the high esteem that Irish beef is held in and I would be confident that in the coming weeks, considering the seasonal trend, we will see sustained trade of beef to Britain.

This has also been a good year for the mart trade as prices for calves are up 20% in the year compared to 2014. Beef breed calves are up 15% alone on 2014 prices and, again, this is a result of Northern Irish buyers using the strong exchange rate to purchase stock from the Republic.

The Minister, Deputy Coveney, has also made provision for a package of support measures for the beef sector in 2015 worth more than €70 million. This includes the beef data and genomics programme which forms part of Ireland's draft rural development programme. The proposed programme will have a budget of €300 million over a period of six years and is intended to deliver an accelerated improvement in the environmental sustainability of the herd through the application of genomic technology. It will also position Ireland at the global forefront in the application of genomics technology and cement our place as one of the most important export-focused beef producing nations in the world.

As Ireland exports 90% of the beef that it produces, it is vital that we have many diverse markets to sell our product into in order to ensure primary producers here receive the best prices available.

The Department engages on an ongoing basis with many third countries, in collaboration with Bord Bia, the Department of Foreign Affairs and Trade, Irish Embassy staff, the meat industry and the European Commission on various market access issues. In fact, the Minister is not present today because he is in Ghana at a promotion event for Irish beef as we speak.

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