Matt Carthy (Cavan-Monaghan, Sinn Fein)
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26. To ask the Minister for Agriculture, Food and the Marine his views on the four movement and 30 month rules imposed by meat factories; and the steps he is taking to ensure that such rules do not negatively impact on competition and farmers' ability to receive a fair price for their produce. [33511/20]

Matt Carthy (Cavan-Monaghan, Sinn Fein)
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A number of rules are imposed by factories on farmers. Many of them date back to the period of the BSE crisis. The most renowned of them are the 30 month and four movement rules. They cause huge consternation for the farming community. They are seen as a way the factories manipulate prices and the market. Does the Minister have a view on these rules? Will he engage to ensure such rules are not used to distort the market?

Charlie McConalogue (Donegal, Fianna Fail)
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I thank the Deputy and I know this is something that received much attention during the beef protests last year and has also received much attention since then with regard to the beef task force. The Deputy knows there is not a rule as such limiting the age of cattle or the number of movements for beef production, but meat processors do make in-spec bonus payments in respect of cattle that meet certain market specifications which can be required by retail customers.

The 30 month age and four movement specifications to which the Deputy refers fall into this category. Such specifications are a commercial matter and are not conditions imposed by the Department of Agriculture, Food and the Marine. It should be noted that certain third countries have imposed a 30 month age limit in respect of beef imports and that this is specified in certain veterinary health certificates which accompany beef exports to those countries.

In September 2019, consensus was reached between stakeholders on the Irish beef sector agreement. Two elements of the agreement relate to the specifications we are referring to, the first being the introduction of a new bonus of 8 cent per kilogramme for steers and heifers aged between 30 and 36 months that meet all non-age-related existing in-spec criteria and that up to now had not been the subject of any bonus. The second element is an independent review of market and customer requirements, specifically in respect of the four in-spec bonus criteria currently in operation in the beef sector here. The Deputy will be very much aware that the details of this agreement are publicly available on my Department’s website.

Grant Thornton was successful in tendering for the transparency studies, including the review of market and customer requirements, specifically in the context of the in-spec bonus criteria currently in operation in the beef sector. The Covid-19 pandemic has caused some initial delays to progress on these studies. The consultants were unable to have the necessary engagement with retail customers, both domestically and in key export markets for Irish beef, as retailers were understandably preoccupied with ensuring the continuation of their supply chains. However, this work is back on track and substantial updates on it are planned for the next meeting of the task force.

Matt Carthy (Cavan-Monaghan, Sinn Fein)
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The Minister is saying that these are just private matters that the factories have control over and then, on the other hand, that the beef task force will look at it. The two positions do not relate. I am disappointed even with the terminology the Minister is using. He is basically reciting the factories' propaganda. They call it a bonus criterion. Every farmer I know calls it a penalty because it is one. It is not a bonus that people who meet the criteria get, it is a penalty those who do not must pay in the form of receiving a reduced price. Today, the Minister will see that the Teagasc annual farm survey has indicated that 40% of our beef farmers are still essentially non-viable. They would not be able to survive and stay on their farms were it not for the fact that they have other employment. The age profile of the people concerned is increasing. All of these things mean that urgent action must be taken so it is just not good enough to say this is a matter for the industry. If the farmers were doing something which was disrupting the work of the factories, the Department would intervene. The factories are bleeding farmers dry and using some of these rules to do so. There is a need for intervention.

Charlie McConalogue (Donegal, Fianna Fail)
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I am very much aware of the income pressure many farmers are under. That is why in the recent budget I secured an 11% increase in funding above last year's amount to ensure that some key schemes will continue next year during the transition period running into the next CAP programme. That is something which is massively important for our farming community. Also, in the context of trying to ensure transparency in the beef sector, the Deputy will know that I have brought forward into the programme for Government a policy on implementing an office of national food ombudsman to help bring transparency to the food sector. I very much welcome the Deputy's belated conversion to the merits of that office and seeing how it can be particularly valuable.

I very much value the work of the beef task force and it is a very appropriate forum in which to examine these issues. In particular, the Grant Thornton report looking at the specifications and at the requirements of retailers and how that interfaces with processors and primary producers is really important. I look forward to receiving it and ensuring that it actually informs how we and the sector move forward.

Matt Carthy (Cavan-Monaghan, Sinn Fein)
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In case the Minister is in any doubt, I wish to state clearly that we will work with whatever is put in place. The food ombudsman is something to which he has committed. I hope he does it quickly and I really do hope it works. I still have my doubts. A food ombudsman can only implement Government policy and if that policy is to turn a blind eye to these type of practices by the factories then the food ombudsman can do nothing about it. These practices go back to 2009, a very different time. Many players in the retail and food sectors say they do not make any sense. Nobody goes into a restaurant, requests its best sirloin beef and asks the restaurant to ensure that the beef is 29 months old. Nobody goes into a supermarket and looks at the packaging to see how many movements the cow that produced the beef made. These are just mechanisms put in place to distort the market. I ask again, will the Minister monitor these and analyse the impact they are having on the prices farmers are receiving? If that analysis confirms what I believe, namely, that they are actually having a downward pressure on those prices, will the Minister then look at all mechanisms to ensure we can find a means to undo the damage?

Charlie McConalogue (Donegal, Fianna Fail)
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I am glad to hear that the Deputy will work with me on the policies I will be seeking to implement in respect of this matter because I have not seen any policies from Sinn Féin that would address it at all. I expect to see the report Grant Thornton is preparing on the relationship and the requirements of retailers and how that interfaces with processors and primary producers very soon. It will be really important to informing the work of the beef task force. Very importantly, I see a very strong role for that task force as the voice for farmers and the representative farmers on how we go forward from that point. As I pointed out earlier, the commitment to introduce a food ombudsman to bring additional transparency is something I am very committed to because it is very crucial for me that farmers get a fair price, are profitable and are rewarded for the very hard work they carry out.