Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

I propose to take Questions Nos. 16 and 22 together.

The Irish Cattle Breeding Federation, ICBF, is the body that is approved in Ireland in accordance with the relevant EU legislation to conduct testing, genetic evaluation and publication of breeding values for dairy and beef cattle. It has recently updated the beef breeding indices. This was the first major update of the beef breeding indices since 2015 and it is based mainly on changing economic drivers such as feed costs and beef prices. A modest adjustment also took place based on earlier slaughter of animals as well as tuberculosis resistance, carcass specifications and lower methane output.

I understand that prior to the updates, continentals such as Charolais, Limousin and Belgian Blue were the most desirable terminal cattle breeds, and that continues to be the case after the changes. With regard to the replacement index, the top three most desirable replacement breeds are Aberdeen Angus, Limousin and Simmental, and they remain the top three as well after the changes.

The ICBF has recently committed to convening an industry stakeholder forum to address issues and concerns raised by suckler farmers and pedigree breeders, and I welcome that engagement.

The suckler carbon efficiency programme, SCEP, aims to provide support to suckler farmers to improve the profitability and environmental sustainability of the national beef herd. I understand from the ICBF that 84% of 4-star and 5-star animals prior to the changes to the indices will retain that status after the changes. This means that 16% of 4-star and 5-star animals are adjusted.

Animals in SCEP herds whose index falls will not be impacted by the changes unless the SCEP participant sells an animal that has gone down in rating. It is only when this animal moves out of the herd that its 3-star rating, for example, will become applicable, rather than the previous 4-star or 5-star rating. I understand that any other issues arising will be addressed in the coming months in the stakeholder forum and communications will be issued to SCEP participants by ICBF. I will continue to monitor any impact on SCEP closely because I want to make sure that farmers know where they stand, are backed with their payments, and have the confidence to stay with it. I am confident that the amended indexes will contribute to the overall profitability and sustainability of beef production at farm level and my Department will continue to monitor the impact of the amended indexes on SCEP participants.

The data has changed. The evidence that has been gathered over the course of the last number of schemes and collated by the ICBF has changed. Whenever the evidence changes, it has to adjust its star ratings and apply them so that people know what they are dealing with. Regarding the impact on that SCEP programme, one has to have a certain percentage of 4-star and 5-star cows in the SCEP scheme to be paid. If a cow started off as a 4-star or 5-star cow in the SCEP scheme, even if the evidence now indicates that the cow would be a 3-star cow in future, in recognition of the fact that it was a 4-star or 5-star cow, as long as it stays in that herd it will continue to be paid for annually within the SCEP and to be able to meet the percentage thresholds that the farmer needs to meet while the cow stays there. Obviously the farmer then needs to adjust his breeding plans for replacements, so in the future he would seek replacement cows that are 4-star or 5-star cows, not ones that were 4-star or 5-star cows but were adjusted. To give that time and space to replenish with 4-star or 5-star cows, taking account of the new indexes, farmers will still get paid for the full duration of that cow being in the SCEP scheme. While that cow stays there, it will stay as a 4-star or 5-star cow and will get the €150 per year.

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