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

As I indicated earlier, in accordance with competition law, neither I nor my Department has any role in determining market prices for any commodity, nor can I intervene in this process.

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. We have to acknowledge that input costs at farm level will be unexpectedly high this year as a result of fodder shortages.

At the recent meeting of the beef round table on 3 October, I highlighted the need for stakeholders to recognise their inter-dependency. 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 on whom the sector relies for its development. It is essential that the position of the primary producer in the supply chain be improved if the industry wishes to have a sustainable future.

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 whole supply chain through increased engagement in the bioeconomy. These discussions were aimed at highlighting available tools to build resilience in the sector.

I noted that previously at the beef round table in 2015 a commitment was made to legislate for the recognition of producer organisations, POs, in the beef sector. This initiative was supported by all sectoral stakeholders and in February of 2016 a statutory instrument was signed into law to give a legal basis for my Department to maintain a register of recognised POs in the beef sector. The recognition of POs will encourage primary beef producers to form producer organisations and allow farmers to engage collectively with processors. The ultimate aim is to ensure the viable development of production by strengthening farmers' bargaining power with downstream operators.

At the round table on 3 October, I also 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 in order 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.

Additional information not given on the floor of the House

More generally, in the beef sector, I was pleased to secure in the recent budget €20 million for a new pilot scheme targeted at suckler farmers and specifically aimed at further improving the carbon efficiency of beef production. The pilot will build on existing work in this area and inform the development of future policy direction.

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 CAP. 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. My view is that such payments should support and encourage suckler farmers to make the best decisions possible to improve the profitability, and the economic and environmental efficiency, of their farming system.

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