Seán Sherlock (Cork East, Labour) | Oireachtas source

I support the motion and say that the view of the Labour Party is that the suckler sector is a vital for the Irish agrifood sector. We have been studying the report authored by Professor Thia Hennessy, Dr. Justin Doran, Professor Joe Bogue and Dr. Lana Repar entitled, The Economic and Societal Importance of the Irish Suckler Beef Sector. My own area of Cork is predominantly a dairy sector and is probably more protected from the vagaries of the market than the Border, midlands and west region to which other speakers have referred. The report sets out a clear challenge regarding where the suckler beef sector will see itself in a number of years. Page 66 of the report concerns moves afoot to replace suckler beef with dairy beef. I will quote from the report because it is worth considering the academic view on this. Section 7.4 states that:

It is expected that the dairy sector will continue to grow, and as such an increasing share of the output of the beef sector will be comprised of dairy-bred beef. Some believe that the threat of a contracting suckler cow herd can be offset by the potential to replace this sector with dairy-bred beef. However, for others there are concerns about whether rearing dairy calves is an appropriate substitute for suckler farming. Single suckling selling weanlings is the most common production system in the west of Ireland.Typically, calves remain grazing with the cow and are sold once weaned. These calves are typically purchased by farmers with better production conditions and possibly based in a better climate, and are then fattened. Single suckling selling weanling farms may not have the land type, housing facilities and/or husbandry skills to finish dairy animals. Anecdotal evidence suggests that, despite a number of campaigns to promote dairy calf rearing in the west of Ireland, uptake has been very slow. It remains to be seen whether dairy beef can be a viable alternative to suckler farming in marginal areas.

In speakingto that point, it is important that we do not forget that there are regional variations and that in certain areas, farmers must specialise in suckler farming because of the conditions that apply there. We must be mindful of the fact that those farm families need to earn an income, put food on the table and, as Deputy Rabbitte noted, give their children the option of continuing in farming. They must have a proper price for their product. They cannot be merely price takers.

We also welcome the recent moves regarding price but we feel strongly that the Government must play a more active part in ensuring that there is greater communication between all the stakeholders in a co-ordinated and organised way that recognises the regional variations that exist as they relate to those people who rely on the suckler beef sector.

The regional spread of the agrifood sector means that it underpins the socioeconomic development of rural areas, in particular. For example, more than half of all Irish farmers are located in the Border, midlands and west region with around a quarter of farmers being over the age of 65. Statistics from the Government pointing to job creation in the capital in the areas of finance or IT do little to compensate those farmers left to deal with the consequences of a no-deal Brexit. Simply put, these regions will need real support to transition through whatever crisis might come down the line. They are already at crisis point.

It is our view that the Government has failed to provide the necessary support and funding to the sector and rural Ireland over the past three years. Its failed management of two programmes, one of which was fully funded by the EU with the others being co-funded, demonstrates this fact. The LEADER programme 2014-2020, which is a key driver for rural developments, consists of €250 million with regard to projects relating to rural environment, social inclusion and economic development yet with less than 16 months until the deadline. At a time of deep turbulence for rural Ireland, less than 40% of the total funding has been distributed so far. These are all major funding lines that have a significant impact in those marginal areas and on the marginal incomes, to which I referred earlier. There needs to be a more co-ordinated approach at Government level.

In echoing the call of the motion, we agree that introducing a framework for producer groups is necessary to ensure a critical mass of farmers coming together to facilitate price negotiations. In addition, fixed-price contracts must be explored, as proposed by the motion, because the farmer takes all the risk. If a farmer has a fixed-price contract, he or she knows what he or she will get. It is a fixed price that a farmer can take to the bank, so to speak. Irrespective of currency devaluation, fluctuations or market conditions, the farmer knows that there is certainty. It provides a safety net. It would involve sharing the risk between processors and producers or farmers but it would provide farmers with reassurance and provide greater market stability.

We support the motion. We strongly believe that there needs to be a greater interrogation of the dynamics within the suckler sector. The report from which I quoted provides a strong basis for this. It states in its conclusions:

Despite the economic significance of the suckler cow sector, the grave and difficult economic situation at the farm level is a major weakness. The very low market prices relative to production costs mean that this large farm sector is almost entirely reliant on direct payments. This obviously makes the sector, and indeed the entire supply chain, extremely vulnerable in light of the proposed cuts to the CAP budget. Any negative price shocks arising from threats such as Brexit or international trade deals will exacerbate the economic situation at the farm level making farmers even more reliant on payments.

We have a lot of work to do to ensure the viability of the sector in this country, but this is a starting point, and on that basis we are supporting the motion.

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