Matt Shanahan (Waterford, Independent) | Oireachtas source

I welcome the debate. Everybody in the House agrees it is time to see more transparency in terms of understanding our agrifood sector overall and the challenges facing primary producers in particular and also understanding how what we make finds its way to end markets and the supply chain considerations in that regard. There is a need for a significant review and analysis of the agrifood sector, but particularly of the challenges facing the beef sector.

We have had significant discussions in the House in recent weeks on sustainability. This is the new buzzword in our economy. Environmental, social and economic sustainability are referred to. What do they actually mean? Addressing the environmental challenges that revolve around greenhouse gas reduction and the intensification of our agrifood sector seem to be in opposition. We can understand social sustainability as what I would describe as the retention of regional and rural Ireland, with a vibrant and viable economy. Economic sustainability is the ability of Ireland Inc., as an exporting nation, to be competitive in exporting in the future. The beef sector has 70,000 beef farmers and there are 10,000 involved in processing. The sector is worth over €2.5 billion annually to the Exchequer. Ireland is the fifth largest producer of beef in the world. We have an important agri-sector and the beef sector is important in its own right. There are questions over who controls the market, however. It is certainly not the primary producers. Is it the processors? They have a part to play but I suggest to the House that a significant part of the problem is what the retailer and consumer are prepared to pay for the end product. I worked in the meat sector for several years many years ago and understand fully the difficulty in trying to market internationally. The end price is largely dictated to the consumer by the multiples and through their activities. Those in meat processing are subject to meat brokerage and meat arbitrage. Some meat cuts lie around for 12 months before they are sold. People have to understand that there are significant costs within the supply chain.

Rather than welcoming the appointment of a regulator, I would welcome the appointment of a food ombudsman. This was highlighted by the beef task force. This could do a lot to address transparency. Farmers need to be careful about what they wish for in terms of a regulator. There could be further regulation at the primary food production end and that might not be what people need. Therefore, there needs to be transparency in retailing. I have a particular problem with below-cost selling and loss-leading, which is a significant factor in Irish multiples’ sales. I said in the House some weeks ago that a pound of frozen pizza sometimes sells in supermarkets for more than the price of choice cuts of Irish beef. That is a significant regret for everybody in the House.

We have to find a way to achieve differentiation in respect of the Irish beef export market. We have to align Government policy with that process. We must have transparency, certainly on pricing. We must have fairness and equity regarding what is being paid to primary producers but we must also see a sustainable pathway indicating how farmers will receive a ready and adequate return for the work they do, which is so important to our national economy. As other Deputies have said, it is a question of how we are going to deliver equity and fairness for farmers in the future. I welcome the debate and hope the Minister will provide further opportunities for debate on this issue.

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