Michael McNamara (Clare, Labour)
Link to this: Individually | In context | Oireachtas source

I commend the Department of Agriculture, Food and Marine on holding a beef summit, which took place on the day the Dáil went into recess for Easter. While I welcome that it was held, I am afraid I cannot welcome the results of the summit, which have been very disappointing. In the two weeks since the summit was held, beef prices have barely increased. O3 steers increased by 0.3% in the first week and last week only increased by one cent per kg. With regard to R class, there was no change in the first week and there was a very minor change of 0.8% from €3.75 per kg up to €3.78 last week.

The biggest problem facing agriculture in the country is that many farmers have significant numbers of young bulls on their hands largely because the beef factories encouraged farmers to accumulate them. Again, the prices have increased by 0.6% in the first week and 1.7% in the second week. However, at the moment the price for R-class animals is €3.55 per kg, whereas last year it was €4.11 per kg. Farmers are facing considerable losses.

When addressing the Oireachtas Joint Committee on Agriculture, Food and Marine recently, Mr. Paddy Gernon of the Irish Cattle Exporters Association outlined that there is a market for those young bulls in Libya and other places but said he could not get boats to take them there because of the licensing regime that pertains in this State. I tabled a parliamentary question asking how many boats were licensed to take cattle to Libya and the Minister very proudly told me that there were two boats and that Ireland operates the strictest regime in Europe for the live export of animals. I was told that EU Council regulation No. 1/2005 on animal transport provides for stricter rules to be applied by member states than those set down at EU level. While that is true, that regulation also requires the adoption of rules in the field of transport of animals in order to eliminate technical barriers to trade in live animals and to allow market organisations to operate smoothly. The Department seems to have entirely forgotten that objective of the regulation, because the only organisation that can classify boats as being fit is the International Association of Classification Societies. That is an extremely restrictive practice not operated by any other state. I find it hard to believe that states such as the Netherlands, the United Kingdom and Sweden do not take animal rights seriously and that we are the only state that does. I question why we make it so hard to send cattle outside the State and particularly to third countries such as those in north Africa when Bord Bia advises that there is a market there. The Irish Cattle Exporters Association has advised there is a market there but its members cannot get the boats.

Another worrying development is the number of feeding lots being taken up by processors. Last week the Limerick executive of the IFA passed a motion calling for any farmer who gives his or her feeding lots over to processors to fill to be expelled from the IFA. The number of feeding lots that processors are taking up, particularly in Munster, enables them to manipulate the market at will. If prices start to rise - clearly they have not risen in any way since the summit - they can release thousands of cattle into the market to drive the prices down. At the moment we have a very serious issue with regard to our livestock and increasingly have competition issues. I want to know what the Department is going to do about it.

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the Deputy for giving me the opportunity to clarify the issue. The Deputy seeks to address the crisis in beef prices by facilitating live exports. The trade, whether to other EU member states or to third countries, serves a dual purpose in stimulating price competition for domestic cattle and satisfying a real demand in overseas markets for specific types of animal. It thus complements the processing beef trade by providing alternative market outlets, thereby underpinning the meat and livestock industry generally. Currently, two ships have been approved by the Department of Agriculture, Food and Marine for live exports to third countries. The facilitation of this trade by the Department is a key component of our strategy for the beef sector.

To date this year, exports of live cattle are up by almost 21,000 head or 23%, principally on the back of large increases in the calf and finished cattle categories. Shipments to Britain are up by 46% while live exports to Northern Ireland in the period amounted to 13,300 head compared with 11,335 animals for the same period in 2013 - an increase of 17% over the year. Indications from live exporters are that the higher level of live exports will continue, and live export volumes were further boosted by a recent shipment of 2,500 animals to Libya.

There are also acknowledged constraints in the trade of live cattle to Northern Ireland brought about by the marketing strategy operated by the UK retail chains regarding cattle born in the Republic but exported live for finishing and processing in Northern Ireland or Great Britain. The long-standing policy of those retailers that buy Irish beef is to market UK and Irish beef separately. This means that beef must be sourced from animals originating in one country - that is born, reared and slaughtered in the same country - thus decreasing the attractiveness of Irish-born cattle for Northern Ireland meat plants whose customers are large UK retailers. In addition, logistical difficulties arise when a small number of Irish-born animals are slaughtered in a UK meat plant. Under mandatory EU labelling rules, these carcasses have to be deboned in a separate batch and packaged and labelled accordingly, thereby incurring additional costs for the processor.

While Bord Bia has repeatedly raised the issue of stocking beef from Irish-born cattle slaughtered in the UK with British retailers over the years, there are no indications that their marketing policy is likely to be reversed soon. These are commercial decisions, of course. Nevertheless, Bord Bia, in its ongoing interactions with British customers, will continue to pursue all opportunities to maximise the potential of the beef and livestock trade with our largest trading partner. This will include a new €500,000 marketing initiative for Bord Bia to intensify its promotion of Irish beef in the UK and selected continental markets.

Despite what the Deputy said, the recent beef round-table conference in Dublin Castle on 17 April represented a very useful and constructive engagement opportunity from all sides of the beef industry.

Derek Keating (Dublin Mid West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am sorry to intervene, but the Minister of State's time is up. I ask him to wind up because I do not believe he will have enough time to conclude the entire statement.

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Deputy has raised this and we need to provide clarification. Mr. Michael Dowling, the chairman of the beef activation group, has been asked to review the implementation of that group's recommendations and consider some issues raised at the beef round-table conference. It has been agreed that it will meet on a quarterly basis. This reporting system will be dealt with at the next meeting. There are several issues regarding rural development, the new plans that are coming in and many other issues that were addressed at that round-table conference. I believe they were quite constructive. Anyone who participated in it, particularly those representing the industry and the farming organisations, was quite satisfied with it.

Michael McNamara (Clare, Labour)
Link to this: Individually | In context | Oireachtas source

I do not know if the farming organisations are satisfied with it, but the farmers are not and I am not. Let us consider the figure: 0% increase; 0.3% reduction; 0.3% increase; 1% increase; 1% increase; 0.6% increase; 0.3% increase. These are across the various classifications of steers and young bulls.

The figures speak for themselves. They are not my figures or the IFA's but are the figures of the Department's agency, An Bord Bia. There has not been an improvement.

The Minister of State seems to accept that it is okay that only two boats are licensed to ship to North Africa from an island nation. He made much of the number of exports to Northern Ireland. I am open to correction but I doubt very much livestock were exported to Northern Ireland in boats. In the case of Britain, it is roll-on/roll-off. There are even problems there but, as the Minister of States well knows, one does not require specific licensed boats to take cattle to Britain and that the only place we need them to go to is to third countries, such as Libya, but there are only two boats.

The issue is that the Minister of State's Department is proud of the fact it operates the most restrictive regime in Europe. I would like to know why. Is it really about animal safety or is it about subverting competition and protecting particular processors? Will the Department do something about the fact feed lots across this State are being filled by processors which gives them the power to subvert competition and to hammer beef prices? As soon as prices rise, they open those feed lots and release thousands of cattle to drive down the prices. Will this anti-competitive practise be investigated because if it is not, many farmers who had cattle in sheds all winter and who have cattle in sheds now will be in trouble? They are losing money on every head of cattle because, as I said, prices are way down on this time last year. The Minister of State knows that, as do I. The prices for store cattle at the marts are not down. People are looking at losses unless something is done. If nothing is done, the Minister of State can rename Agriculture House, Goodman House.

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Deputy made much of two or three issues. I am proud Ireland has a strict regime in regard to the standard of boats.

Michael McNamara (Clare, Labour)
Link to this: Individually | In context | Oireachtas source

So am I.

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

It is very important we have top class conditions because the type of animal we produce is a top class one. One does not send animals in boats in very poor condition. That is important because animals can die. As the Deputy knows, they have to travel a long way by sea and they have to be maintained. I do not think the Department or anybody in this country would stand over a regime unless it was strict, which it has to be.

The fact of the matter is that the figures have risen. The Department is committed to allowing a free market. It is important competition is the life of the trade, whether for the processors or the live industry. It is very important to have both.

Michael McNamara (Clare, Labour)
Link to this: Individually | In context | Oireachtas source

Look at the figures for beef prices.

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I know a little bit because I happen to buy cattle. What needs to happen is for us to produce an animal which the market demands. As the Deputy knows, there is a changing trend, in particular in England, in regard to the type of animal needed. There was a flooding of the market in the past few months with bull beef which was not needed. Following the round table discussions, that is now being discussed.

Michael McNamara (Clare, Labour)
Link to this: Individually | In context | Oireachtas source

What about the Libyan and Tunisian markets?

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The reality is that we need a market and a beef industry in this country in which people have confidence. The round table discussions, the reporting back by Mr. Michael Dowling and what he will put in place in the coming months will help the beef industry. I accept people must be sure because a lot of money is being invested. The Deputy made the point that the processors are buying the feed lots all over the country. The reason for that is that some farmers cannot finance it. It is very expensive to buy a lot of animals to fill a feed lot. It is an issue which needs to be addressed over a period of time and I certainly hope the round table discussions will deal with that.