Dáil debates

Wednesday, 27 March 2019

5:30 pm

Photo of Declan BreathnachDeclan Breathnach (Louth, Fianna Fail) | Oireachtas source

The seanfhocail "Mair, a chapaill, agus gheobhaidh tú féar" or for those not too familiar with it "Live, horse, and you'll get grass" reminds me of the Government's attitude particularly since the onset of Brexit. The farming community is not seeking a handout; it is seeking the Minister's hand at the tiller supporting them, encouraging them and seeking the necessary measures to make it viable. No farmers here want a handout; they want a hand up.

The crisis in our beef industry has been severely compounded by stock numbers and the uncertainty of Brexit. In 2018 we had the highest kill in 15 years, with 1.8 million cattle killed, 80,000 more than in 2017. Over a five-year period, the increases ranged from 40,000 to 120,000. Obviously those increased numbers have had an impact on both supply and demand. The perfect storm has been brewing and the Minister has known about it for a long time, right from the onset of the mushroom crisis when Brexit was announced, and coupled with this, the increased production I have mentioned has tipped the supply balance on the scales.

Farmers say that meat factories are making money and there is no doubt that they are. However, they are also struggling to sell prime cuts that have reduced from €8 per kilogram to €5 per kilogram. Many will claim there is a silver bullet with China or the wider Asian market, but we all know that they are mainly looking for the cheap cuts.

From a farmer's perspective, a poultry farmer in Poland can fix his price 12 months in advance. A grain farmer in Ireland can forward sell his grain. The relative success of the milk production in Ireland in the past five years has been based on farmers knowing well in advance the price per litre. I firmly believe it is time for the beef manufacturers and the beef producers to become friends and deliver what is needed for this industry, which is forward pricing.

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