Dáil debates

Thursday, 31 March 2022

Ceisteanna Eile - Other Questions

Beef Industry

11:10 am

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
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121. To ask the Minister for Agriculture, Food and the Marine his plans to introduce a State-owned and State-controlled beef blockchain; and if he will make a statement on the matter. [16263/22]

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
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The blockchain in the beef industry is tomorrow's offal. Whoever controls the blockchain controls the sector. This must be publicly owned and should not be let fall into the hands of one or two vested interests. This is the last throw of the dice for beef farmers in this country to have the opportunity to have some element of control of the market and it needs to be led by the Minister.

11:20 am

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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I thank Deputy Naughten for raising this issue. I know it is something for which he has been a very strong advocate. I am confident that the food safety controls and traceability systems operated by the Department in co-operation with other relevant agencies, particularly the Food Safety Authority of Ireland, can provide assurances to consumers of Irish beef, wherever they are in the world, that the highest standards of safety and traceability are upheld and enforced here. With regard to traceability in particular, the national bovine herd already has a robust traceability system, namely, the Department's animal identification and movement system, which records and maintains identification and movement data on cattle and other livestock in accordance with the requirements of EU and national law.

As for the blockchain concept and its applicability to the beef sector, I agree this technology certainly has potential for the future and I can see its merits. Some sectors are further advanced than others in examining the benefits such a blockchain approach could bring. It is important we examine all options open to us to future-proof the sector. I have no current plans, however, to develop a State-owned and State-controlled blockchain in any sector. In the first instance, any proof of concept or feasibility analysis with respect to implementing a blockchain in the beef supply chain would need to be driven primarily by the sector supply chain actors to ensure appropriate buy-in and successful implementation. Second, in the context of my Department's regulatory role, I reiterate this already operates in full compliance with EU and national legislation, and it is unclear what additionality, if any, a blockchain could bring to these regulatory requirements.

More generally, the Deputy will be aware I have taken a number of important initiatives aimed at increasing transparency in the food supply chain. In September 2021, I signed into law a statutory instrument to give effect to additional price reporting obligations under the EU. Increased price reporting will be an important tool, along with other initiatives, in supporting primary producers. Last week, I brought the general scheme of the agricultural and food supply chain Bill to the Cabinet and received approval for it. That office will be established and functioning by the end of the year.

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
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I welcome the measures the Minister is taking in respect of market transparency but I am deeply disappointed with his response. As he will be aware, primary producers in Wyoming and New York has gone down this road because it provides an alternative route to market for a premium product that can have a direct financial return for the primary producer. The only way this will work here is if it is led, owned and controlled by the State. The Minister stated he will allow matters to continue as they have been for generation after generation and leave it to the beef barons to develop this initiative. I reiterate this is the offal of the future. Whoever controls the blockchain will control the route to market. If we are serious about giving a financial return to beef farmers, it needs to be publicly owned.

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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As I said, I see merit in the idea and it will be important to the sector to assess it and have ownership of it. I take the Deputy's point about ensuring any future system will work to the benefit of farmers and family farms and add value to animals. I am open to the idea and its potential. If any farm representatives are assessing it or working with the Deputy to flesh it out and consider its potential, I will certainly be happy to engage with them along those lines. I acknowledge the Deputy has advocated for it previously. In terms of traceability and safety, what we do is exceptional and world leading, but we have to look to the future as well. As has always been my approach, I will certainly engage regarding any ideas or suggestions that farm organisations or representatives may have for how we can improve and bring forward the sector in the years ahead.

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
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The difficulty is that if this is not led by the Minister, it will not happen and we will not ensure there is an alternative route to market. We have handed over €6 million to Bord Bia to promote suckler beef, even though that body publicly advised the Minister's predecessor that it does not believe there is resonance in the market for suckler beef. I do not know, therefore, why we gave it €6 million. If that money were to be invested in a publicly owned and controlled blockchain, it would provide a significant financial dividend to suckler farmers by giving them a premium route to market.

The other avenue in this context for providing a financial return to suckler farmers relates to the awarding of protected geographical indication, PGI, status for suckler beef. What is the status of that application?

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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I appreciate that the PGI application, which relates to grass-fed beef, is another issue for which the Deputy has advocated strongly. The application has been going through the process at the Commission and it is now at the stage where other member states have the opportunity to engage and give their views. As part of this, I have had much engagement with my Northern Ireland counterpart minister, Edwin Poots, in respect of developing the application on a 32-county, all-island basis. We are working closely together to try to ensure that grass-fed PGI standard will be an all-Ireland application in order that all Irish beef can be marketed abroad and we can get a premium price for it in those markets. Obviously, the Commission will decide whether to approve the application, although I am certainly hopeful that will be the case. Much work has been done across the board to bring it to this stage.