Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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7. To ask the Minister for Agriculture, Food and the Marine if he, along with the Minister for Agriculture and Rural Development in the North, met representatives of the British multiples to address issues related to Irish beef; and if he will make a statement on the matter. [35159/14]

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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Much of this issue was addressed in the response to Deputy Ó Cuív's priority question. Will the Minister provide an update on his meetings with his counterpart in the North, the Minister for Agriculture and Rural Development, Ms Michelle O'Neill, as well as the representatives of supermarkets? What was the outcome?

Simon Coveney (Cork South Central, Fine Gael)
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Ireland's trade with Britain accounts for 53% of our beef export volumes, worth €1.1 billion per year, at approximately 250,000 tonnes in 2013. It is equivalent to approximately 750,000 cattle, so there is much trade between Ireland and Britain. The British retailers’ long-standing policy is to market British and Irish beef separately so as to avoid any perceived confusion for consumers. This means beef must be sourced from animals originating in one country or the other; they are labelled as born, reared and slaughtered in the same EU state. Therefore, animals which originate in the republic and are sent North for rearing or slaughter fall out of the retailers specifications, as they will have to be labelled as coming from two separate states. I suspect the Deputy would like - as I would - this island to be one country but it is not at the moment, so there is a requirement for a country of origin label that is accurate. That is the issue with which UK retailers have an issue.

The number of such animals is relatively small in overall terms at 50,000 per year and there has been an impact on some of the trade in live cattle into Northern Ireland, which traditionally has been an important outlet for the Irish beef sector. Nevertheless, I am pleased to note that mart sales in the last fortnight are reported as strong both in terms of price and volumes being traded. As a result of the difficulties earlier in the year, I have engaged with my counterpart in Northern Ireland, the Minister, Ms Michelle O’Neill, in order to try to alleviate some of the pressures being felt by farmers involved in the cross-Border trade. We agreed to make a joint approach to the three British retailers who stock Irish beef, accepting that these were commercial matters, but also seeking some flexibility, given that this beef is produced to the exacting standards required by British consumers. I have also met separately with representatives of Tesco recently and we had a useful and frank discussion on this and other issues regarding the beef market generally. I have also convened a meeting with the Minister, Ms O'Neill, and those involved with the Northern Ireland Retail Consortium, which will take place in Dublin in the coming weeks. This will provide a useful forum to further explore the retailer concerns and identify possible solutions. I will also meet the Minister at the next North-South Ministerial Council, when we will also have an opportunity to discuss the matter.

Additional information not given on the floor of the House

While exploring these issues, I must also be mindful of the significant brand of Irish beef built up over many years and amounting to €2.1 billion of exports in the last year. Irish beef trades on its reputation and this must be guiding principle where changes to the labelling rules are under discussion nonetheless. I am of course fully aware of the temporary difficulties in the cross-Border trade this year and I am exploring practical solutions to alleviate this.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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I thank the Minister for his reply. At what stage is the issue of an agreed label to meet the requirements of at least one player in the multiples sector? My understanding is that both the Minister for Agriculture, Food and the Marine and the Northern Ireland Minister for Agriculture and Rural Development had agreed a label, with one of the multiples seeking a letter of comfort regarding that. I understand it was sent.

Simon Coveney (Cork South Central, Fine Gael)
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Unfortunately, it is not as simple as that, although I wish it were. I cannot agree a label for a product in Northern Ireland.

It is outside my jurisdiction. The Irish Food Safety Authority has no jurisdiction there. Following conversations with the Minister for Agriculture and Rural Development in the Northern Ireland Assembly, Michelle O'Neill, I have made clear to her in writing that I have no problem with this. Many people in Ireland have a big problem with this, mainly processors. I have no problem with this as a way of trying to create a normal trade, North and South, for beef on its way to the UK market.

I have met Tesco and have asked if it will show some flexibility because beef produced on the island of Ireland for consumers in Britain is perceived as Irish beef coming from the island of Ireland. We should market it as such but the country of origin labels will need to be accurate. We cannot ignore the fact that technically two jurisdictions would be involved. The overall branding could and should be Irish beef. Ultimately it is up to a processor selling beef from Northern Ireland into the UK to come up with that label. Politicians cannot put a label on product. Somebody who is selling it needs to do that. I have made clear that we certainly will not object if and when that happens. In fact, we have encouraged them to do that and to meet retailers who have shown a willingness to be flexible about its sale.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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Has the Minister received any reply to his request for flexibility?

Simon Coveney (Cork South Central, Fine Gael)
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Absolutely.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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Was it positive or negative?

Simon Coveney (Cork South Central, Fine Gael)
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It was positive. I had a two hour meeting with Tesco when we discussed a series of issues, mainly around beef. This was one of the key requests. Until a few weeks ago, the trade for live beef animals was significantly down. Ironically, live cattle exports to Northern Ireland are significantly up this year. The kind of animals we are looking for in the beef trade has been down somewhat. We need Northern buyers in marts, providing competition to get the best prices for animals, and so on, and that has picked up significantly in recent weeks. To be fair to Tesco, it said it was willing to consider this. It is very strict about label accuracy, to make sure that it looks after its consumers, but it recognised that its customers would not have a problem with an Irish label on beef produced to more or less the same standards, North and South on the island of Ireland, as long as there was proper label clarity underneath that. It is up to processors in the North to deliver on that and negotiate with Tesco, which has shown a willingness to be flexible.

Mick Wallace (Wexford, Independent)
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Animals aged over 30 months cannot be used for T-bone steak. This is a significant cut-off point for factories. Does the Minister think it is possible to increase that to 36 months? The specific risk material regulation had been at 24 months, but in years gone by it was 36 months until the problems arose.

There is a very good completed database for all beef animals in Ireland, which is controlled by the Department of Agriculture, Food and the Marine and provides all details of herd profile. Do the factories have access to that database? If so, it explains how easy it is for them to manipulate the market price. Sometimes that gives them too much information and they are able to take advantage of the farmers, knowing when the heifers were born and how many are coming to the 30 month point.

Simon Coveney (Cork South Central, Fine Gael)
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That is if they get the information. They are not supposed to.

Mick Wallace (Wexford, Independent)
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It gives the factories the opportunity to cut the price at that time.

Simon Coveney (Cork South Central, Fine Gael)
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None of that should happen because factories do not have access to the database. If they get access to it they are doing so in ways that they should not, whether from a vet in the factory, or whatever. Factories should not have access to a database that gives them information about the numbers of animals that farmers in their region have to sell, and so on.

We have put systems in place to make sure they do not get access to that information. I have heard that accusation on a number of occasions over the past six months. We have checked it out in some detail. We are ensuring the broader database to which the Department must have access, relating to animal movements and numbers, etc., is not handed over. Factories are not entitled to this commercially sensitive information.

We sell into a number of premium markets that have age restrictions as part of their specifications. Other markets do not have such restrictions. Some markets have weight restrictions as well. British retailers, which comprise the highest paying market for beef in the world at the moment, want beef steaks that are smaller than those being sold by some Irish producers that are producing really good animals. When there is a lot of beef around the market, as there has been this year, the premium markets that are paying the most for that beef can choose to demand certain specifications. That has been one of the most significant problems over the past 12 months, particularly for producers of large continental animals of a certain age. They got very good money for animals of that age last year, but they are being penalised for animals of the same age this year. That is why there needs to be a much better line of communication between factories and primary producers. I hope the producer organisations will help to facilitate that.