Thomas Byrne (Fianna Fail) | Oireachtas source

I move:

That Seanad Éireann--notes:

- the collapse in beef prices over the past number of months;
- the refusal of processors to slaughter bulls throughout the country;
- the changing of carcass specifications by processors mid-way through the production cycle;
- the use of labelling issues as a barrier to free trade between the Republic of Ireland and the UK;
- the severe impact the crisis is having on beef producers and on suckler cow farmers in particular; and

condemns:

- the actions of beef processors and retailers in driving down prices to a completely unsustainable level for farmers; and
- the lack of Government action on the issue and complete failure to address farmers’ concerns; and

calls for:
- a new beef regulator to provide oversight to the industry; and
- co-operation with the UK Government and Northern Ireland Executive to overcome labelling restrictions that are acting as a barrier to free trade in exports”.

This is an important motion and I am delighted that my colleagues have decided to move it. There is a depression among farmers in the beef industry. That is the best way to describe it. The collapse in prices is pushing many people over the edge financially. Everyone is struggling. I know from the beef farmers whom I meet or know that they are in bad form. In recent times, they have been attending my clinic due to social welfare issues because of the collapse in beef prices. It is sad to see farmers in that type of humour. We hear much about how the agricultural sector will bring us out of the depths of recession, but the bad humour that has become noticeable has touched me.

Two major issues have led to the current crisis. The Minister must get a grip on it instead of relying on the usual platitudes of the market. The agricultural sector should not be treated the same as any other market sector. Beef processors have changed the game, altering age and weight criteria for the bulls to be slaughtered, resulting in the price collapse. As regards the UK market, there are difficulties with labelling, communications and the marketing of Irish and British beef, resulting in a decrease in demand. These issues place pressure on farm incomes and threaten exports and employment in the sector. According to the CSO figures, half of the new jobs being created are in agriculture. They are certainly not in the beef sector.

The Government has been slow in recognising the gravity of the situation and has done little to handle it. We propose the establishment of an independent regulator with decision making powers to oversee the industry, reduce some of the powers of and domination by processors and enable all farmers to make a living producing beef for export and the domestic market. The UK labelling issue could be addressed by our Government through increased co-operation with the UK Government and the Northern Ireland Executive, but not much has been done. This issue is causing a major crisis, yet when a consumer goes to a supermarket or restaurant, the price collapse is not evident. In fact, beef has almost become a luxury product domestically. This is not the fault of farmers.

In the past 12 months, there has been a collapse in bull beef prices, with factories altering the age and weight specifications required to slaughter cattle. Producers have been forced to accept losses of €200 to €300 per head. Processors claim that adjusting the criteria in this manner is a response to the market, but the reality is that domestic demand for the Irish product is limited and we are heavily reliant on exports. We are subject to international fluctuations.

The Competition Authority must investigate the relationship between beef processors and large retail multiples in the UK. It is about time that the Government considered this issue seriously and referred it to the authority or the European Commission, given the cross-Border dimension. In the national interest, all Ministers can be guilty of listening to the big boys in industry while omitting the key person at the bottom of the chain. It is imperative that the Minister listen to farmers and heed the IFA's call for an emergency summit between all stakeholders. In our motion and as a matter of policy, we advocate for an impartial regulator with decision making powers to oversee the industry coupled with a Competition Authority or European Commission investigation into the relationship between processors and the large multiples that control much of the market.

The Government has claimed that one half of all new jobs created are in the agriculture sector, but farmers cannot be left exposed to and unprotected from swings in demand. They will simply stop, as they cannot keep sustaining such losses, and an important export industry will quickly become a drag on the economy rather than something that can help to rebuild it. The processors must provide clear signals to farmers to allow the latter to plan ahead. Due to fluctuations in the market, one can do well for a time, make necessary investments and so on, but such factors are beyond one's control. They may be under the influence of the Government, but they certainly would be under the control of an independent regulator were one to exist. Without farmers, the business model could collapse, contributing to the country being unable to progress as planned.

Beef processors must be held to account by the Government for providing a fair solution to farmers, who are key to all of the Minister's targets. I am glad that he has adopted Deputy Smith's document as part of Food Harvest 2020. The mood among farmers is so bad that people are giving up. It is terrible. I know of four individuals over whom there is a depression because of this situation.