Dáil debates

Tuesday, 15 October 2019

Ceisteanna Eile - Other Questions

Beef Industry

5:10 pm

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

There have been a series of formal negotiations with beef sector stakeholders facilitated by my Department since early August. This culminated in an agreement being reached between stakeholders on Sunday, 15 September. This agreement covers the types of issues raised in the Dáil motion of 26 September.

The full text of the agreement between beef sector stakeholders is on my Department website. The agreement involves a number of interventions which will provide immediate benefit for beef farmers as well as a range of strategic measures which seek to address structural imbalances in the sector. Beef producers will benefit from an immediate increase in a range of bonuses. This will increase the level of bonus being paid on certain animals as well as significantly increasing 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 on top of the basic price paid. A number of actions in the area of market transparency, beef promotion and strengthening the position of the farmer in the supply chain are included in the agreement. These measures set a course towards greater clarity for all stakeholders involved in the beef supply chain, primarily farmers. My Department is also proactively engaging with several potential beef producer organisations, which have the potential to strengthen the bargaining power of beef farmers in the supply chain. Two beef producer organisations have been formally recognised by my Department in recent weeks.

I have established a beef market task force to provide the leadership to develop a sustainable pathway for the future of the beef sector in terms of economic, environmental and social sustainability. The task force will provide a robust implementation structure for commitments entered into in the agreement, with timelines and stakeholder engagement. Furthermore, the task force will offer a suitable platform for strategic engagement with key stakeholders, including retailers and regulatory authorities. The task force is also the appropriate forum for considering issues such as the potential of blockchain in the sector. I have appointed Michael Dowling as chairperson of the task force. Members include representatives from my Department, State agencies, farm organisations and the meat industry. As Deputy Naughten is aware, the task force was supposed to meet yesterday but that meeting did not proceed. I expect he shares my view that this was entirely regrettable. The remit of the task force is to monitor the implementation of the actions arising from the agreement of 15 September. It offers the most viable platform for strategic engagement with key stakeholders.

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