Martin Heydon (Kildare South, Fine Gael) | Oireachtas source

I am an active suckler farmer. My mother took over the enterprise at home after my father passed away until I was old enough to take it on. I know what it is like to derive one's sole income from farming, along with the pressure and work that goes with that. I assure Deputy Tóibín and others that the Government is determined that we have a strong and vibrant beef sector for the next generation.

I extend to the House the apologies of the Minister, who is in Brussels and who cannot be here for this important debate. We all agree that the work he is doing in Brussels as part of the CAP trilogues is important for all farmers and primary producers.

The programme for Government contains a commitment regarding the establishment of a new authority, to be called the national food ombudsman, or similar, to enforce the unfair trading practices, UTP, directive. As my colleague, the Minister of State, Deputy Peter Burke, stated, it is envisaged that the body to be established will have powers which go beyond those outlined in the UTP directive. Public consultation on the issue closes today and this will feed into the direction of development of the office.

I draw Deputies' attention to the fact that Ireland is one of the first of the EU member states to transpose the UTP directive into national legislation. This is credit to the hard work of the officials in my Department and to the clear commitment of the Government to pursue as many measures as possible to ensure fairness, equity and transparency in the agricultural and food supply chain. The establishment of this office is what the Government has committed to delivering. It will be delivered in a way that optimises its usefulness to supply chain actors and consumers. However, as the Minister previously stated, the office will not have the authority to determine commodity prices. Neither the Minister nor the Department has or can have a role in determining price for any commodity. We are not in a position to set up any entity which will run contrary to existing competition law. If Members wish to examine this issue further, as part of the beef task force agreement the Department commissioned and published a summary of competition law issues as relevant to the Irish beef sector. This report is publicly available on the gov.iewebsite.

There is no denying the importance of transparency in building the trust along the supply chain necessary to develop an economically and environmentally sustainable sector. This is an area that we have also actively pursued since taking office. The report done on competition law for the beef task force formed one of a series of three reports. A further report on market specifications and requirements has also been published and is available on the gov.iewebsite. A draft of the third and final report on the price composition along the supply chain has been made available to task force members. Their comments will be considered before the report is finalised and published, hopefully in the near future.

These reports are useful in adding to transparency on the way the sector operates. There have been a number of other transparency initiatives completed under the auspices of the beef task force, including the enhancement of the Department’s beef price watch app and the establishment of the new Bord Bia market tracker. The Bord Bia market tracker presents data on a range of indicators in an accessible format. This includes price comparisons, a comparison of Irish composite prices for all product, as well as for prime cattle, with an export benchmark price, which reflects the relative importance of key markets for Irish beef. It also includes an index of wholesale and retail prices, along with a by-product market indicator.

Both of these initiatives, which were part of the beef sector agreement, have also contributed to increased price transparency in the market. I should note that my Department already collects and publishes a range of date on the beef sector. My Department is responsible for collating and reporting meat prices, as well as other data, every week to the EU in the context of the EU market observatories. The Department then uses this and other data to compile and publish a weekly meat market report with price, production and trade data.

It is envisaged that the new office of the national food ombudsman will have a specific role in analysing and reporting on price and market data in Ireland. We have worked on improving the transparency of this data in recent years. As I have already noted, neither the Government nor its agencies can have a role in the determination of commodity prices. However, it is possible to strengthen the position of sellers in the marketplace by supporting collective action through producer organisations, by improving transparency and by prohibiting unfair trading practices. My Department is taking action in all these areas.

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 providing support for the establishment of beef producer organisations is available under the outgoing rural development programme and will continue to be available in the transitional period. My officials have engaged extensively with potential groups since the inception of the measure in 2016. One of the commitments from the beef talks in August 2019 was that my Department would engage to the fullest extent possible to assist with the establishment of beef producer organisations. This commitment was clearly demonstrated though the engagement with the organisations which have been established, which have publicly acknowledged the high level of support that they have received from Department officials in this regard.

The establishment of the producer organisations 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 exploring how best to facilitate the further development of producer organisations under the new CAP. We made a firm commitment in the programme for Government to support the establishment of more producer organisations in the beef sector which we are actively pursuing. This will strengthen the position of farmers and primary producers in the supply chain.

Another commitment in the programme for Government aimed at supporting the competitiveness of the sector was the development of an application for protected geographical indication, PGI, status for Irish grass-fed beef. The development of this application was also an action under the beef sector agreement of 2019. After an extensive consultation process with stakeholders, a PGI application for Irish grass-fed beef by Bord Bia, on behalf of producers, was submitted to the European Commission last November. The European Commission has recently responded to this application with detailed technical queries which are now being examined. If approved, PGI status has the capacity to broaden the range of markets and market segments in which Irish grass-fed beef can compete and to add to its existing reputation as a quality product.

Encouragingly, despite an extremely challenging year, agrifood exports totalled €14.3 billion in 2020. Beef exports fell marginally by volume and value in 2020 by 4%. However, we must remember the challenging circumstances of 2020. The Government categorised farming and food production as essential services under the Covid-19 regulations. Since the start of the pandemic, my Department has been focused on ensuring that business and services to farmers can continue, keeping food and other processing facilities operational, as well as ensuring payments and commercial activities necessary to protect farm incomes can continue.

We have worked closely with all sectors in this regard, none more so than the meat industry, in ensuring that plants remained operational, which is important for primary producers in having an outlet for their stock. However, ensuring that the health of workers was protected was the Government’s priority at all times. The relevant and detailed public health advice has been implemented. My Department’s statutory responsibility in the context of meat plants is to ensure that Department-approved meat plants operate in compliance with the EU’s food hygiene legislation, animal health and animal welfare standards. However, in the current circumstances, in addition to this statutory role, my Department is continuing to provide any support required to the HSE and the Health and Safety Authority at local and national level.

Many challenges facing the sector remain but so does the opportunity to collectively rise to them to develop a sector that is economically, environmentally and socially sustainable, while recognising that we need to do this in a way that delivers for all stakeholders, in particular for farmers as primary producers. Continuous, strong and meaningful engagement from stakeholders in the beef task force, as well as in processes such as the development of the office of the national food ombudsman and the development of the new CAP strategic plan, will be central to achieving that aim.

Deputy Sherlock raised a concern about the UK-Australia trade talks. As Minister of State with responsibility for new market development and maintaining existing markets, I take a keen interest in such trade negotiations. We continue to monitor the details of such negotiations. While the outcome is out of our hands, it is worth bearing in mind that Bord Bia research shows that British consumers have a very high regard for Irish beef, regarding it with the same level of trust for their own British beef. Bord Bia continues intensive marketing in the UK. If PGI status is approved, it could significantly help with our premium markets which is absolutely key. It is about increasing value for our primary producer by accessing higher value markets. Recently, we had success in this regard in Japan. It normally was just for beef tongue and offal. Getting access for Irish beef mince and burgers to the Japanese market has been a significant development which could make a big difference for farmers and primary producers.

I thank Deputy Carol Nolan and the Rural Independent Group for raising this important issue and giving us an opportunity to put on the record the work that we are doing in this area to safeguard the future of the beef sector in Ireland.

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