Michael Creed (Cork North West, Fine Gael) | Oireachtas source

My Department is examining all appropriate measures to support the different agrifood sectors, including the suckler sector, in preparation for the next iteration of the Common Agricultural Policy, CAP. The measures adopted will be informed by stakeholder consultation on the needs of the sector to develop in an economically and environmentally sustainable way, as well as the relevant research and the available budget and structure of the new CAP when it is finalised.

I was pleased to secure an allocation of €20 million in the 2019 budget this week for a new pilot scheme for suckler farmers, specifically aimed at further improving the carbon efficiency of beef production. The scheme will target the weaning efficiency of suckler cows and calves, measuring the live weight of the calf at weaning as a percentage of the cow's live weight. The data will be used to target improvements on a herd basis by giving the farmer detailed feedback on the performance of individual animals. The data collected will also be a valuable addition to Ireland's impressive database on cattle genomics. Details of the scheme will be announced in due course.

I am also confident that suckler farmers will be significant beneficiaries of the additional €23 million in funding announced for the areas of natural constraint, ANC, scheme.

The beef data and genomics programme, BDGP, is currently the main support specifically targeted for the suckler sector, which provides beef farmers with some €300 million in funding over the current rural development programme, RDP. This scheme is an agri-environmental measure to improve the environmental sustainability of the national suckler herd by increasing genetic merit of the herd.

My Department has rolled out a range of schemes as part of the €4 billion Rural Development Programme 2014-2020. In addition to the BDGP, other supports which are available for suckler and sheep farmers under Pillar II of the CAP include GLAS, ANCs and knowledge transfer groups. Suckler farmers also benefit from the basic payment scheme and greening payments under CAP Pillar I.

I am conscious that this has been a difficult year for the sector in terms of weather and the range of challenges associated with it. At the recent meeting of the beef round table on 3 October, I highlighted the need for stakeholders to recognise their interdependency. I urged processors to engage positively with their farmer suppliers to build the sustainability of the sector as a whole and to ensure a reasonable return for the farmers upon whom the sector relies for its development. It is essential that the position of the primary producer in the supply chain be secured if we are to build a sector for the future.

Additional information not given on the floor of the House

The beef round table also included discussions on the potential for producer organisations and the development of new technologies as ways of adding value along the entire supply chain, all tools to build resilience in the sector. Producer organisations would allow farmers to engage collectively with processors, with the aim of strengthening farmers' bargaining power. Additionally, I have asked Bord Bia to conduct a detailed examination of market dynamics, with the co-operation of the industry, taking into account sales of particular cuts into particular segments of the market to improve price transparency.

One of the unique strengths of the agrifood sector is our shared vision for the sustainable development of the sector in Food Wise 2025. I hope that this positive engagement will continue.

I am strongly of the view that this new provision announced in this week's budget and the existing range of supports available to suckler farmers, together with ensuring access to as many markets as possible, both for live animals and beef exports, are appropriate supports for the continued development of the sector. According to national farm survey, suckler farmers receive support equivalent to approximately €500 per suckler cow on average.

I will continue to argue for as strong a CAP budget as possible, post 2020. In particular, I am committed to ensuring that suckler farmers continue to receive strong support in the next CAP. Such payments should support and encourage suckler farmers to make the best decisions to improve the profitability, and the economic and environmental efficiency, of their farming system. The beef environmental efficiency pilot is a positive step in that direction.

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