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

I thank the Ceann Comhairle. I share the serious concerns about the ongoing difficulties facing the beef sector and understand the frustration which has driven some farmers to engage in prolonged picketing of beef factories. Last weekend, I facilitated lengthy negotiations involving beef stakeholders to try to find a resolution to the current dispute. All parties agreed that it was crucial to find a means of getting the sector fully operational again and protecting the livelihoods involved, including both beef farmers and factory workers, whose jobs are at risk. The talks last weekend culminated in an agreement between the meat industry and seven farming organisations and representatives, all of whom undertook to support the agreement on the ground and recommend those on the protests to step back from their protest in response to this negotiated agreement.

The agreement is a two-strand approach aimed at providing immediate financial benefits direct to beef farmers as well as addressing longer-term structural issues. A means to implement and measure progress on these measures was also set out and agreed. As part of the deal, beef producers will benefit from an immediateincrease in a range of bonuses, as follows: an increase of 66% in the current in-spec bonus for steers and heifers from 12 cent per kilogram to 20 cent per kilogram; the introduction of a new bonus of 8 cent per kilogram for steers and heifers aged between 30 to 36 months, which meet all non-age related existing in-spec criteria, and which up to now have not received any bonus; the introduction of a new in-spec bonus of 12 cent per kilogram for steers and heifers under 30 months in the categories of grade O- and fat score 4+, which currently do not qualify for any bonus; and the in-spec 70-day residency requirement will be reduced to 60 days on the last farm.

These measures offer an immediate financial benefit for beef farmers. They both increase the level of bonus being paid and increase significantly the number of animals which are eligible for a bonus. The cumulative effect is that over 70% of all steer and heifers slaughtered will now be eligible for a bonus payment on top of the base price paid.

A beef market task force is being established immediately to provide leadership to develop a sustainable pathway for the future of the beef sector in terms of economic, environmental and social sustainability. I will appoint an independent chair to lead the task force. Its membership will comprise officials from the Department of Agriculture, Food and the Marine and relevant State agencies and nominees from farm organisations and the meat industry. The task force will provide a robust implementation structure for commitments entered into in the agreement, with timelines and stakeholder engagement. Furthermore, it will offer a suitable platform for strategic engagement with key stakeholders, including retailers and regulatory authorities. Other key immediate actions include the development by Bord Bia of a beef market price index model and a scientific review of the quality payment grid by Teagasc.

The second strand of the agreement sets out strategic measures which seek to address structural imbalances in the sector. These measures will provide clear information and bring greater transparency to the sector with a view to ensuring sustainability of the sector into the future. A number of actions in the area of market transparency, beef promotion and strengthening the position of the farmer in the supply chain were agreed upon. The agreed measures set a course towards greater clarity for all stakeholders involved in the beef supply chain, primarily farmers. The agreement includes commitments on an independent review of market and customer requirements, specifically in relation to the four in-spec bonus criteria currently in operation in the Irish beef sector; an independent examination of the price composition of the total value of the animal, including the fifth quarter, along the supply chain, the results of which will inform future actions, as necessary, and on which the beef industry will co-operate in providing data; and initiatives on improving information on carcass classification. There are also commitments with regard to more detailed price reporting, more reporting on carcass classification and on the transposition of the EU directive on unfair trading practices.

I do not intend to read out the agreement in full. The full details are available on my Department’s website. However, I am satisfied that it contains the best balance of immediate financial benefits for beef farmers and a series of more medium-term strategic actions.

In terms of other supports to the beef sector, I was pleased to be able to re-extend the application period for the beef exceptional aid measure, BEAM. On 16 September, I announced the extension of the application period for the BEAM until 5 p.m. on Friday, 20 September. I was also pleased to announce that Department staff would be available to assist farmers in making their application at the Department's tent at the National Ploughing Championships this week in Fenagh, County Carlow. I encourage anyone who is eligible to apply to avail of this final opportunity to apply for the scheme. Any potential applicants who are unsure of the benefits or details of applying should visit the Department's tent at the National Ploughing Championships where a dedicated team will be on site each day to answer any queries potential applicants may have and assist in submitting their applications.

It is very important to note the recognition, for the first time, of a beef producer organisation in Ireland on Wednesday, 11 September last. Producer organisations are an important part of the toolkit in building resilience in the sector by strengthening the position of the primary producer in the supply chain. Department officials have engaged extensively with potential groups since the inception of the measure in 2016 and one of the commitments from the Backweston agreement in August was that officials would engage to the fullest extent possible to assist with the establishment of beef producer organisations. This commitment was clearly demonstrated though the engagement with the established group, which has publicly acknowledged the level of support it has received from Department officials in this regard. Furthermore, the establishment of the group is an important and timely signal to farmers that they can collectively do business in a way that enables them to have increased bargaining power, as well as helping them to increase their economic and environmental efficiency through collaboration with the potential for enhanced knowledge-sharing and economies of scale.

Funding providing support for the establishment of beef producer organisations is available under the current rural development programme. This funding is available to support the engagement of Department approved facilitators to assist with the application process for recognition of producer organisations. Funding is available for each group, up to a total of €3,000. The Department is exploring the role producer organisations should play under the next Common Agricultural Policy, CAP, and how best to facilitate this. Producer organisations not only have the potential to improve the position of farmers in the supply chain but also to provide strong relationships between the elements of the supply chain to the benefit of all.

I will share the remainder of my time with my colleague, the Minister of State, Deputy Doyle. I will conclude by noting that collaboration and dialogue are the only way out of the current situation and the only way to secure the future of the beef sector. The entry into force of the agreement is contingent on the cessation of all protests and blockades. All parties to the agreement took responsibility for ensuring that this would happen by recommending the agreement to those they represent. The current situation is doing immeasurable damage to the sector and its reputation in our overseas markets, which account for 90% of all the beef we produce. The future of the beef sector is now in the balance and I appeal to all those still protesting to step back for the sake of their fellow farmers.

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