Dáil debates

Thursday, 30 April 2020

Covid-19 (Agriculture, Food and the Marine): Statements

 

10:25 pm

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

I will try to race through the issues. I have met with the dairy co-ops and executives by teleconference on two occasions in recent weeks. Our primary concern was to make sure that as we approach peak production, we keep processing capacity functioning and that there would be sufficient contingency planning in our Department and at individual plant level to facilitate that because there is little head room in processing over and above peak production levels.

There is recognition at EU level about the unique structure of our agricultural industry, its dependence on exports to the EU and the fact that we are disproportionately dependent on food service because we have a limited domestic retail market. Does that translate to additional supports? There would not have been the movement that has happened, albeit inadequate, were it not for the efforts we have made in reminding the EU that it needs to respond to a common problem, across the EU, rather than letting member states respond individually, which would run the significant risk of renationalisation to which I alluded earlier when considering comments that have been made by our nearest neighbour.

The beef task force has not met but there has been ongoing engagement with virtually all of the stakeholders during this period. Work that was undertaken and commissioned is progressing in my Department which will facilitate the task force when it meets at the earliest possible date.

Deputy Cahill made points around areas of natural constraints, ANC, and stocking rates. This is something on which we would want to reflect. I have resisted interfering with the stocking rate because people buying to meet stocking rate requirements are putting a floor on the price of live cattle at the moment. If we were to tell people they do not have to meet the stocking density requirement for ANC payments, we would undermine that trade and by virtue of eliminating that condition, qualify a substantial number of farmers who have not previously applied for the scheme. The pot would have to be shared out to a larger number of farmers and we would erode the base price that is underpinning the live trade market.

I have committed to keeping an open mind on the 5% reduction in organic nitrogen loads for the beef exceptional aid measure, BEAM, but I do not believe that something that will kick in only from the end of July this year to the end of June next year is currently a detriment on the market.

I hear the point the Deputy made about allotments and it is one that has been brought to my attention by many others. I am subject to correction by the public health advisory team, but I do not think anybody could make the case that individually opening allotments would create a surge in the pandemic. The fear is a cumulative impact of a series of what look, individually, like minor issues. When those accumulate, it could be a trigger mechanism for a surge and that is the concern.

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