Dáil debates

Thursday, 19 June 2014

Ceisteanna - Questions - Priority Questions

Beef Industry

10:40 am

Photo of Martin FerrisMartin Ferris (Kerry North-West Limerick, Sinn Fein)
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2. To ask the Minister for Agriculture, Food and the Marine his plans to remedy the situation whereby the traditional trade in live cattle exports to the Northern Ireland has collapsed due to the penalisation of nomadic cattle by retail multiples there, due to the labelling problem which arises from cattle being born in the 26 counties and slaughtered in the North; if he has consulted with the Minister for Agriculture in Northern Ireland regarding the introduction of a North-South, Irish brand for beef. [26240/14]

Photo of Martin FerrisMartin Ferris (Kerry North-West Limerick, Sinn Fein)
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Are there any plans to remedy the situation regarding the traditional trade of sending live cattle from the South to the North? These cattle are known as nomadic cattle and this trade has effectively collapsed. What does the Minister intend to do about it? Has he met with the Minister in Northern Ireland, Michelle O'Neill? Have they formulated any plan to help remedy the situation?

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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As the Deputy is aware, my Department attaches considerable importance to the live export trade and over the years has been very active in facilitating shipments abroad. Live exports serve a dual purpose as a means of satisfying legitimate market demands for live animals and providing alternative market outlets for farmers. I do not accept that the trade in live exports to the UK and Northern Ireland has collapsed. Total live exports to date this year are over 150,000 head, of which 25,000 went to the UK, an increase of some 3,100 head or 14% up on the comparable period in 2013. Out of this figure of 25,000, some 18,400 went to Northern Ireland, which is an increase of 6% on the same period in 2013.

However, the potential to grow the live trade to the UK is constrained by the buying specifications operated by the British retail chains in respect of cattle born in this country and exported live for finishing and processing in that market. The retailers' long-standing policy is to market British 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. 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, packaged and labelled accordingly, thereby incurring additional costs for the processor.

Bord Bia has repeatedly raised this issue with British retailers over the years but they are unlikely to reverse their marketing policy in the short term. Nevertheless, Bord Bia in its ongoing interactions with British customers will continue to pursue all opportunities to maximise the full potential of the beef and livestock trade with our largest trading partner. In addition, Bord Bia actively supports the development of the live export trade through the provision of market information, developing market access and promotional activity. There is ongoing dialogue with my Northern counterpart, Michelle O'Neill, and I assure the House that every time we meet her, which is quite regularly, this issue is raised and worked on in order to reach a satisfactory conclusion.

Additional information not given on the floor of the House

It has been agreed at ministerial level to submit another application to the EU Commission for an all-Ireland protected geographical indication, PGI, for Irish beef. The GI scheme originates from the concept of local regional food rather than national reputation. The unique quality of the produce is derived from the geographical area and therefore it is considered that this would usually imply a local "terroir". An application for Irish beef, Ireland only, was lodged previously under an older version of the GI regulation which allowed for the use of a member state's name only in exceptional circumstances. Following an unfavourable response from the Commission, the application was withdrawn.

The Commission had concerns about different aspects of the application but under the regulation in force at that time, use of a country name was only allowed in exceptional cases and the Commission did not consider that the application met this requirement. While the current regulation does allow for the use of a country name, in practice, this has not been done so far. To obtain a GI for all Irish beef would be very challenging. We would have to demonstrate that the same characteristics country wide in terms of geographical or human factors are the causal link in creating this one unique product.

An obvious issue would be beef from Northern Ireland and how similar or different the geographical or human factors are for this beef. It is possible to have GI registration for a product that crosses different legal jurisdictions but the product has to be the same product produced in the same way and whose uniqueness can be shown to be causally linked to the geographical area. Furthermore, the origin labelling requirements are causing difficulties for a country-wide approach. GI names are protected and other products cannot use their names or imply they are like them. However, under labelling rules, beef must be labelled with the member state of origin. The Commission has concerns that there would be a contradiction between these requirements.

Photo of Martin FerrisMartin Ferris (Kerry North-West Limerick, Sinn Fein)
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Dialogue and serious dialogue are two different things. I cannot understand why the two Ministers on this island cannot resolve this issue. The people who are most affected by this are the smaller beef producers on the west coast. Traditionally, buyers from the Six Counties bought the cattle and that trade benefited everybody. It does not make sense that the two Ministers cannot resolve this. They need to sit down and resolve it.

This is the second day that there have been protests outside Government Buildings regarding the situation and the Minister. There is a lack of confidence in the Minister on the part of the farming community because he is not addressing the problems. Perhaps his mind is elsewhere but he certainly needs to address the problems and to give his full attention to the issues affecting Irish farmers, including nomadic cattle and bull beef. The people who are affected are those on lower incomes and they need support and leadership. This leadership must be forthcoming from the Government and Minister. I am sorry to say that the Minister is not acting accordingly.

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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I assure the Deputy that the Minister's door has been open at all times for farming organisations to come in and discuss any issue that concerns them. The Deputy referred to the groups protesting last night. Across the road at 7.30 p.m., the Minister met a group of farmers who were picketing on Tuesday. He is always available. He consistently works long hours trying to help develop Irish agriculture. Due to the fact that difficulties arose with beef in the past few weeks, which we acknowledge, people are now saying that he is doing a bad job. The reality is that he negotiated a deal with the EU that no other Minister would ever be capable of.

I saw him bringing all the countries together at the end of the process — I joined his team only at the end of it — to ensure a deal that would result in significant future benefits for Ireland. I refer to the single payment schemes that he protected so vigilantly on behalf of Irish farmers. Nobody could say that this man is running away from the matter. If anything, and as has been acknowledged by a number of farming organisations and media commentators, he is doing extremely well. Yesterday I walked with the farmers from the west about whom the Deputy spoke, namely the small beef producers. They accept that everything is being done. There is an issue with the beef trade and that is being tackled. It was tackled with the Chinese on Tuesday. It is being tackled today. Next week, the Minister is to visit the United States to deal with it. Therefore, nobody can say he is not doing a good job.

10:50 am

Photo of Martin FerrisMartin Ferris (Kerry North-West Limerick, Sinn Fein)
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The Minister of State and I are on a different planet. His statement this morning that the Minister has the confidence of the farming community is not correct. Why have there been two protests in this city this week by the farmers most affected, that is, those in the beef sector and hill farmers, the people most in need? At this point, we need leadership. I cannot understand why the Minister is not sitting down with Ms Michelle O'Neill. I took the trouble to meet Ms O'Neill only last week on this issue. Her team is willing to sort this issue regarding the labelling aspect but the initiative must come from here also. It must not be evident only in one area.

With regard to having a good working relationship, I have no doubt that there is commitment on the part of the farming sector to have a good working relationship but it must be reciprocated. Leadership has to come from the Government, including the Minister. Farmers are not happy. The beef producer, in particular, is not happy, nor are those who are trying to negotiate parts of pillar 2. This says a lot about the Minister's commitment at present. I am sorry to disagree with the Minister of State. I am certainly not happy with what is occurring.

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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The bottom line is that it suits the Opposition to say the Minister is not doing a good job. One should consider the context of what he has achieved, including the price of milk and the fact that dairy products are doing really well right across Europe and elsewhere on the world stage. Beef prices have decreased. I saw at first hand only last week that cattle in the marts around my county are not as dear as they were this time last year. However, prices are higher than they were three years ago. This seems to be a matter of confidence in the Minister. When prices are down in a sector, I have no doubt but that people will seize the opportunity to blame him. That is the traditional approach but people need to be more constructive. They should work out how to open new markets, including the American market, and how to get our really good, top-class grass-fed beef onto the world stage. The Chinese were here some days ago. They were greatly impressed with our environment and the way we produce beef. We need to market that. What we say here is no good if we do not push what we have on the world stage. In global terms, the amount of beef we produce is not huge and would not flood the market but we have a specialised product. I assure everybody that it is a question of building up the markets, and that is what we need to achieve.