Jackie Cahill (Tipperary, Fianna Fail) | Oireachtas source

The decision by Brussels to allow ABP Group to take over Slaney Meats is inconceivable. The State reneged on its responsibility in this regard and the decision was left to Brussels to make. Farmers cannot understand how this decision was allowed to be made. It is the view of the vast majority of farmers engaged in the beef industry that this group controls a monopoly interest in the industry as it stands but it has been permitted to take out one of the remaining independent players in the industry. We have our problems with the British decision to leave the EU given the fluctuation in currency, but competition is being taken out of a trade that has been lacking in proper competition for a long number of years. Cattle drops have dropped significantly over the past number of weeks. Live exports reduced by 58,000 head last year and it looks like they will reduce further this year while, at the same time, calf registrations increased by 132,000. We have the twin prong of more calf registrations and fewer live exports, meaning more cattle coming through the system. The cattle kill over the past few weeks has been 35,000 or 36,000 head. It has been proven over a long number of years that when the cattle kill rate exceeds 30,000 head per week, prices paid to farmers fall significantly.

I also question the commitment of many people in the industry to the live export trade. The Minister of State will quote figures about the percentage of the industry ABP Group has and he will refer to the various markets open around the world. Thankfully, the Turkish market opened in recent weeks but what it has taken is only a drop in the ocean. Significantly more live exports are needed to generate competition in the trade. I attended my local mart last Monday. The price of Friesian stores has dropped over the past month or six weeks by between €200 and €250 per head. There is a complete lack of confidence in the beef industry. The British decision is partly to blame for the lack of confidence but the fact that Slaney Meats has been taken out of the equation and another independent outlet is gone has greatly added to the lack of confidence.

Farmers' confidence in the industry has been shaken. The beef forum made a number of recommendations, none of which has been implemented. We were promised a review of the beef grid, the lifting of weight restrictions and an examination of the age restriction under the 30-month rule. None of this has happened and, therefore, farmers' confidence is at an all-time low. This is a vital industry for the country and it is imperative that the primary producer has confidence in the industry. However, confidence is evaporating by the day. Farmers selling Friesian cattle into the factories are lucky to receive €3.30 per kilogramme. That is nowhere near break even. Unfortunately, the ABP Group is taking over an increasing number of feed lots, which have many cattle, around the country. In previous years, cattle became scarce approaching Christmas and the new year but now the group is releasing cattle from its own feed lots and manipulating the market to ensure there is no price surge. This happened last winter and prices remained static throughout the spring. There was no price lift for winter finishers. Unfortunately, winter finishers have taken so many batterings that they have no confidence to purchase stores, which is a huge contributory factor to the fall in store prices over the past month to six weeks.

Farmers cannot understand how this decision was made to allow Slaney Meats to be taken over by the ABP Group and why responsibility for the decision was relinquished to Brussels.

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