Dáil debates

Tuesday, 24 September 2013

3:15 pm

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Independent)
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54. To ask the Minister for Agriculture, Food and the Marine the steps he is taking to support a live cattle trade; and if he will make a statement on the matter. [39442/13]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I strongly support the development and exploitation of all available markets for Irish meat and livestock exports. Along with officials in my Department, I have worked tirelessly over the last two years to ensure Irish exporters have access to as many global markets as possible. The markets outside the EU that are currently open to live cattle exports from Ireland are Egypt, Lebanon, Morocco, Tunisia and Libya. The resumption of live cattle exports from Ireland to Libya earlier this year was welcome as it provided alternative market outlets for certain categories of livestock, thereby serving a market demand and providing increased competition in the marketplace here for cattle. Applications for the approval of ships for the carriage of cattle by sea must be approved by my Department in accordance with the Diseases of Animals (Carriage of Cattle by Sea) Orders 1996 and 1998. My Department facilitates the export of live cattle by ensuring such applications are processed expeditiously. Detailed inspections are required before approval is given to ships transporting animals. The Department of Agriculture, Food and the Marine continues to work with all of those involved, including farmers and transporters, to facilitate trade and ensure all such trade is carried out to the highest animal health and welfare standards.

There are no delays occurring in the approval stage. Approvals are issued once all provisions of the legislation are met. Nine applications for approval have been received in total. To date, two ships have been fully approved. Three shipments containing cattle and three shipments containing both sheep and cattle have gone to Libya. A total of 10,991 cattle and 21,443 sheep have been exported. Some 1,879 cattle and 16,565 sheep were exported in July. Just over 2,000 cattle have been exported so far this month. I appreciate that some people have concerns about animal welfare standards in cases of live cattle exports. It is important to emphasise that our standards are higher than those required in any other EU country. We go way beyond the requirements of EU legislation in terms of things like the stability of the vessels involved. Most live cattle exports from Europe go across the Mediterranean at times of the year that are not particularly stormy. That is very different from bringing cattle from Ireland to north Africa in February, which involves travelling across the Bay of Biscay and into the Mediterranean. Our high standards, which are in place for good reasons and are based on sound animal welfare concerns, make it expensive and difficult for live cattle exporters to get all the papers in place for the operation of their ships.

Photo of Billy TimminsBilly Timmins (Wicklow, Independent)
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I thank the Minister for his reply. I accept the need for Ireland to have higher standards than other EU countries. In view of that, what assistance, if any, does his Department provide to private enterprises that are trying to operate these vessels? He mentioned that nine vessels have sought approval, but could he tell me how many vessels are operational at the moment? If he does not have a response to that question, that is fair enough. I can get a response at a later stage. How long does it take for a vessel to be approved? Last May seven vessels were up for approval. Two had been approved and some others were awaiting approval. How regularly do they have to be approved? Does licensing take place on a yearly basis or on a per trip basis? The Minister listed five countries outside the EU to which live cattle are exported. Do we have a possibility of exporting live cattle to any other countries? It is an important element of the industry, particularly from a competition point of view.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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There are opportunities across north Africa.

There is demand across north Africa, particularly in Libya, and I understand there is demand in Egypt and Lebanon. The business case needs to be put together. The higher the price of beef in Ireland, the more difficult it is to put a business case for transporting animals long distances to sell them at a price that is higher than one would get in the mart or factory. It is important to say that in general we should be encouraging the slaughter of the maximum number of animals in Ireland rather than having too many animals on live cattle export ships. The jobs in the beef sector - in processing, packaging, marketing and added value - are important, but the advantage of having a live cattle outlet is that, as farmers would say, it keeps the factories honest. If prices fall, there is always the option and if there are certain categories of animal that do not have a good outlet in the mart or factory, there is an option to export them live.

In respect of the approval process, we work with the companies that are planning a live cattle export trade. Our vets work very closely with them to get the ship right. It is quite a hands-on approach. We are as helpful as we can be. It is not the case that we are dictating to them. It is a question of trying to work with companies to get their ships compliant. Some of the older vessels are not and will not be compliant because we must meet the welfare standards that I have a responsibility to insist upon.

3:20 pm

Photo of Billy TimminsBilly Timmins (Wicklow, Independent)
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I note the Minister said in the past that exploiting market access is an issue for the industry, not the Department. I am aware, as is he, that Bord Bia is there to assist in the marketing of Irish produce. I do not expect that we will be exporting cattle to the US any time soon but I note, and I stand to be corrected, that there is only one person from Bord Bia based in the US. Will the Minister give a commitment to take a look at this issue? The food and drinks industry is a very important part of our economy, and to have only one person located in the US - I believe he or she may be based in Chicago - is insufficient. It is something the Minister could look at in conjunction with the Minister for Foreign Affairs and Trade.

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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I will take brief questions from Deputies Wallace and Ó Cuív.

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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I am surprised the Minister is promoting the export of live cattle. When we export live cattle there is very little in it for the Exchequer, and we are certainly not creating any jobs. The Minister will probably agree that the cattle we are selling to Libya and Egypt are generally of a poor grade and are usually surplus from the dairy farmers who are looking to supplement their herd and are ending up with Friesian bulls that nobody here wants. It might make far more sense for the Department to educate the dairy farmer, who should be running a continental bull with his herd and using artificial insemination to make sure he is getting the Friesian cow replacements he wants. Letting a Friesian bull run with all his herd to get his Friesian heifers does not make sense if he is left with, for want of a better word, scrap that only the Egyptians and Libyans will take. If we use continental bulls, the calves will be of far better quality.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I agree with the Minster that in an ideal world, for job maximisation, we would slaughter all the cattle here. However, as the Minister knows, the market in Ireland is dominated by a small number of major players and the price they offer here compared to the UK - sometimes by the same companies - can be considerably different. Can he explain how it is that cattle cannot be transported by boat from Dublin or Dún Laoghaire to Holyhead when there is apparently no difficulty in transporting them from Larne to Stranraer or Cairnryan? My belief is that a very small number going over there and availing of the higher prices in the UK would ensure that the same prices were available to farmers here. Could the Minister facilitate and ensure that this is opened up in the spirit of free trade within the European Union?

3:25 pm

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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There were a lot of questions but I will try to answer them. On the Bord Bia issue, Deputy Timmins is right. We could do with many more people in that organisation. Last year we doubled the number of Bord Bia representatives in Asia to two; where there had been one person based in Shanghai there are now two. Bord Bia is very anxious to expand its presence. It does a phenomenal job given the number of people it has, and must be one of the best recruiters of talent because all the Bord Bia people I know are very impressive in the jobs they do. However, they are stretched. I am very much involved in a hands-on way in opening and developing new markets. In a few weeks' time I will be going to the Gulf states - Qatar, Dubai, Abu Dhabi and Saudi Arabia. There will probably be 50 Irish food companies coming with us, just as happened in China last year, and many will sign contracts while we are there. In this process the Department works very closely with both Bord Bia and Enterprise Ireland. The latter has taken a much more significant role in helping to develop and expand the food industry and in that regard is working hand in hand with Bord Bia. They are doing a very good job together but I would like to have more people. I have made that case and Deputies may see some announcements in that regard in the not too distant future.

I bow to Deputy Wallace's knowledge on cattle breeding. He is right. If one is breeding for bull beef one may well decide to use continental cattle on one's dairy cows but most dairy herd farmers in the country - certainly many of them - are looking for high-quality replacement heifers to grow their herds and prepare for an absence of dairy quotas post 2015. If that is one's priority one will be looking for top-quality dairy breeding, and as a by-product one will get male calves that need an outlet. It depends on what one is looking for. Last week I opened a top-quality AI bull stud just outside Mallow. A commercial dairy or beef farmer now has a fantastic choice in terms of the bulls they can use to improve the quality of their herds from both a dairy and a beef point of view. I would say our breeding programme is as impressive, if not more so, than that of any other country in the world.

Deputy Ó Cuív asked why we are not exporting live cattle to the UK. There is an issue in regard to the carriage of live animals by roll-on roll-off ferries. Many of the companies do not want to do this. There is an ongoing discussion and I would need to check the most recent update in this respect. It is also important to put into context beef prices in Ireland. For the vast majority of this year we were significantly above the average EU price - about 15% more at times, overall somewhere between 5% and 15%. Recent reductions have brought this figure down but we are still above the average price at EU level. Irish beef does not go just to the UK but goes all over Europe and to some 160 countries in total. The UK has a very different beef market because by and large it supplies its own market. Given that, it is not acceptable to have for any prolonged period a significant differential between Irish and British beef prices, and we are looking at that.

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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The next question is in the name of Deputy Niall Collins.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Is Deputy Collins present?

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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The question is nominated by Deputy Ó Cuív.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I thought new rules required the Deputy in question to be present.

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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Not yet.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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A question was asked previously without the Deputy being present.