Dáil debates

Tuesday, 15 October 2019

Ceisteanna Eile - Other Questions

Beef Industry

6:00 pm

Photo of Brian StanleyBrian Stanley (Laois, Sinn Fein)
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64. To ask the Minister for Agriculture, Food and the Marine his plans to establish a beef market index and if he will make a statement on the matter. [41603/19]

Photo of Brian StanleyBrian Stanley (Laois, Sinn Fein)
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My question concerns the Irish beef sector agreement. I ask that Bord Bia develop a beef market price index model to improve transparency.

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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As part of the Irish beef sector agreement of 15 September 2019, Bord Bia committed to develop a beef market price index model based on three components - cattle price index, beef market price index, including retail and wholesale, and an offal price indicator. Work on the development of this index is under way and progress on this will be reported via the beef task force, which was set up to oversee the implementation of the commitments agreed to at the recent beef talks.

The task force comprises key beef sector stakeholders, with Michael Dowling as independent chair. The beef task force meeting scheduled for yesterday, 14 October, was adjourned, as members of the task force were prevented from attending the meeting. It is in the interests of everyone involved in the beef industry that the work of the task force goes ahead. The task force’s remit is to monitor the implementation of the actions arising from the agreement reached on 15 September. It offers the most viable platform for strategic engagement with key stakeholders. It was a great pity that farm representatives were not in a position to air the legitimate concerns of farmers at the task force.

The agreement of 15 September sets out strategic measures that will seek to address structural imbalances and enhance transparency in the sector. A number of actions in the area of market transparency, beef promotion and strengthening the position of the farmer in the supply chain were agreed.

I do not intend to read out the agreement in full as the text is available on the Department's website. I am satisfied that it contains the best balance of immediate financial benefits for farmers and a series of more medium-term strategic actions. The best approach to supporting the sector, especially in the current context of Brexit uncertainty, is by providing a strong basis of financial support to primary producers, providing supply chain strengthening mechanisms such as producer organisations and ensuring as broad a range of markets to sell product to as possible.

My Department is also proactively engaging with several potential beef producer organisations, which have to potential to strengthen the bargaining power of beef farmers in the supply chain. Two beef producer organisations have been formally recognised by my Department in recent weeks. I firmly believe that producer organisations constitute an important part of the toolkit in building resilience in the sector by re-balancing power along the supply chain.

Photo of Brian StanleyBrian Stanley (Laois, Sinn Fein)
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The Minister left out the piece that stated that it was to have been introduced in the week commencing 16 September. This has not happened. Farmers have very little information to determine whether they are getting a fair price for their produce and the lack of transparency will be manipulated by some. There is considerable frustration out there and there is despair among some farmers regarding viability and being able to keep going through another winter and into next year so we need beef price transparency across the supply chain.

I will introduce the Mandatory Beef Price Transparency Bill 2019 this week. Two weeks ago, the Minister told me in the Dáil that he was willing to look at measures such as this. The measures in the agreement are good but it would be better if they were legally underpinned. The Minister should give our Bill a fair read over. We are open to amending it. This matter is not our sole possession but belongs to everybody, particularly the farming sector. We hope the Bill will provide the basis for legislation to underpin the agreement reached regarding pricing and price indexing.

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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At a general level, I acknowledge the task force as an important forum in which many of these issues can be addressed. There are a number of initiatives within that task force in terms of transparency in the market that along with the agreement and work schedule set by the task force, will inform the task force's approach to a number of matters.

I understand that what is set out in the legislation is somewhat similar to the situation that applies in the US. We will look at the legislation and its merits bearing in mind that the beef market here is somewhat different from that in the US. We will look at it and see how we can work collaboratively to improve the lot of beef farmers.

Written Answers are published on the Oireachtas website.