Andrew Doyle (Wicklow, Fine Gael) | Oireachtas source

I am glad to speak on this issue again, notwithstanding the fact we had lengthy discussions on it last week. I am always happy to talk about farming and all matters related to farming. I share the serious concerns about the ongoing difficulties facing the beef sector and I understand the frustration that has driven some farmers to engage in prolonged picketing of beef factories.

The weekend before last, the Minister, Deputy Creed, facilitated lengthy negotiations involving beef stakeholders to try to find a resolution to the current dispute. These were only the latest talks in a series of formal discussions between beef stakeholders that have been facilitated by the Department of Agriculture, Food and the Marine. These commenced with a meeting on 12 August and continued over the past month. In addition, both the Minister, Deputy Creed, and I have had ongoing bilateral discussions and meetings with farm organisations, representatives and individual farmers. The common thread in discussions was that all parties agreed it was critical to find a means of getting the sector fully operational and protecting the livelihoods involved, including both beef farmers and factory workers, whose jobs were at risk. The talks of the weekend of 14 and 15 September culminated in an agreement between the meat industry and seven farming organisations and representatives, all of whom undertook to support the agreement and recommend that those on the protests step back in response to this negotiated agreement. The agreement is a two-strand approach aimed at providing immediate benefits direct to beef farmers as well as addressing long-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 immediate increase in a range of bonuses. These include 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 that meet all the non-age related existing in-spec criteria and that up to now have not received any bonus; and 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+ that currently do not qualify for any bonus. The in-spec 70-day residency requirement will be reduced to 60 days on the last farm. These measures offer an immediate financial benefit. They both increase the level of bonus being paid and increase significantly the number of animals that are eligible for a bonus. The cumulative effect is that over 70% of all steers and heifers slaughtered will now be eligible for a bonus payment on top of the base price to be 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 economic, environmental and social sustainability. The Minister, Deputy Creed, will appoint an independent chair to lead the task force. Its membership will comprise members from the Department, relevant State agencies, and nominees from farm organisations and the meat industry. The task force will provide for a robust implementation structure for commitments entered into in the agreement, with timelines and stakeholder engagement. It will also 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. The second strand of the agreement sets out strategic measures that 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 the four in-spec bonus criteria currently in operation in the Irish beef sector, and an independent examination of the price composition of the total value of the animal, including the fifth quarter, along the supply chain. The results will inform further actions as necessary.

The beef industry will co-operate in providing data and initiatives on improving information on carcass classification. It is imperative that we have the hard facts about third-country and customer requirements to inform discussions on market specifications. The independent review will provide clarity around those requirements. A country exporting the vast majority of its products is dependent on a range of market requirements. The agreement also includes commitments on more detailed price reporting, more reporting on carcass classification, and the transposition of the EU directive on unfair trading practices.

I am satisfied the agreement contains the best balance of immediate benefits for beef farmers and a series of more medium-term strategic actions. 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 this would happen by recommending the agreement to those they represent. The situation was doing immeasurable damage to the sector and its reputation in overseas markets, which account for 90% of all the beef we produce. With the future of the beef sector in the balance, I welcome that the protests have been stood down. We must now focus on the implementation of the agreement and look to the future of the sector.

Direct payments and payments from the rural development programme, RDP, represent significant EU and national Exchequer support for the beef sector. The Department estimates that at least half of the €1.8 billion in annual supports to farmers goes to beef farmers. Within that, the beef data and genomics programme, BDGP, is the main support specifically targeted at the suckler sector, which provides Irish beef farmers with some €300 million in funding over the current RDP period. The 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 that are available for suckler farmers under Pillar 2 of the Common Agricultural Policy, CAP, include the green low-carbon agri-environment scheme, GLAS, the areas of natural constraints schemes, ANCs, and knowledge transfer groups. Suckler farmers also benefit from the basic payment scheme, BPS, and greening payments under CAP Pillar 1. In addition, this year a provision of up to €120 million was made available in targeted support for beef farmers through the beef exceptional aid measure, which is being provided in light of the difficult circumstances that Irish beef farmers have been facing as a result of market volatility and uncertainty arising out of Brexit and the beef environmental efficiency programme, BEEP. The Department is examining all appropriate measures to support the different agrifood sectors, including the suckler sector, in preparation for the next iteration of CAP. My view is that such measures 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.

My colleague, the Minister, Deputy Creed, announced last week recognition for the first time of a beef producer organisation in Ireland. I firmly believe that 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.

Funding provided 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 of up to a total of €3,000. 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 through the engagement with the newly established group, which has publicly acknowledged the level of support it has received from Department officials in this regard. Furthermore, the establishment of the first producer organisation in the beef sector 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. My Department is currently exploring the role producer organisations should play under the next 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.

Developing new markets and growing existing markets on the basis of market insights is one of the five themes of Food Wise 2025. Market development and diversification is also a key response to the challenges which Brexit poses for the agrifood sector, particularly for beef producers.

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