Seanad debates
Wednesday, 30 January 2019
Nithe i dtosach suíonna - Commencement Matters
Beef Industry
10:30 am
Robbie Gallagher (Fianna Fail) | Oireachtas source
The agri sector is a vital part of the national economy, yet there are a number of serious issues for farmers, which means that many of those involved in the sector are at risk. There simply is not enough of a return on the investment made for some farmers. As the margins are too tight, many have to consider their future. This is a very serious issue in rural Ireland. There is the issue of oversupply and a drop in prices which, in turn, is leading to a crisis of confidence throughout the industry. During the week ending 20 January, the number of cattle processed by Department of Agriculture, Food and the Marine beef export plants totalled 36,656. During the same week in 2017 the figure was 33,256. Unfortunately, the slump in cattle prices before Christmas has continued into 2019, with many factories quoting unchanged prices. Farmers are struggling to have stock killed, with many having to wait weeks. Ultimately, the prices achieved are unsustainable. This cannot continue. We need a clear plan. What measures and additional supports are being developed and considered by the Minister of State to address the issue?
There are growing concerns about the viability of the agrifood sector. What help is being offered to those who need it most? The growing cloud of Brexit is also hanging over us. There is a distinct feeling of despair surrounding beef exports to the UK market, particularly in the event that there is a hard Brexit. Earlier this month it was deeply worrying and concerning to hear the president of the Irish Farmers Association, Mr. Joe Healy, warning that if the United Kingdom crashed out of the European Union, "We are facing ... [a] potential wipe-out of beef production in this country." According to Bord Bia, total Irish exports of beef in 2017 amounted to 556,000 tons, of which 51% with a value of €1.3 billion went to the United Kingdom. We need to know what plan the Government has to support all of the farmers who have invested so heavily in their stock, their livelihoods and those of their families who need to know where they stand. They also need more detail of the aid packages the Government has stated it will demand from Brussels in the event that there is a hard Brexit. We also need clarity on the state of play for beef producer organisations. How does the Minister of State envision it panning out in the future?
The beef plan group has added its voice on the issue and been holding a series of public meetings across the country to seek support for the beef plan policy. It seems to be striking a chord with many farmers in rural Ireland. It has pinpointed what it sees as a lack of support from the market for a quality beef product as a major problem, as well as processors paying below the cost of production for such a product. It believes there is an oversupply of cattle in the market. To tackle the issue it has suggested removing mandatory stocking levels. It is aiming for the introduction of a programme centred on sustainable quality assurance instead of quantity driven policies. Such a measure should help to increase the price of beef. The group is also calling for incentives to be introduced which would see beef producers who exit the market switch instead to fodder production programmes and-or environmental schemes which, in turn, would create a greater balance in the sector.
Farmers are under severe pressure and their stress levels are extremely high. They need the Government to provide clarity for beef producers. How does it plans to tackle this issue in the next few months?
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