Michael Creed (Cork North West, Fine Gael) | Oireachtas source

I thank the Acting Chairman for the opportunity to come to the Seanad and debate this important issue. I fully understand the pressure beef farmers have been under, arising from a prolonged period of low prices and frustration, which drove some farmers to engage in the picketing of beef factories. From August onwards, my Department facilitated lengthy negotiations with beef stakeholders to find a resolution to the dispute. These negotiations culminated in the beef sector agreement reached in Agriculture House on 15 September. The agreement was a compromise, from which no one got everything they wanted. However, it allowed for processing, which is critically important for farmers with finished animals, to recommence. It also provides a framework for a better relationship between farmers and processors into the future. Achieving that will require goodwill from all participants in the task force.

The agreement takes a two-strand approach that aims to provide immediate financial benefits direct to beef farmers and address longer-term structural issues. A mechanism to implement and measure progress on these initiatives was also set out and agreed upon. As part of the deal, beef producers will benefit from an immediate increase in a range of bonuses. There will be an increase in both the level of bonus being paid and in the number of animals eligible for a bonus.The cumulative effect is that more than 70% of all steer and heifers slaughtered will be eligible for a bonus payment on top of the base price paid.

A beef market task force has been established and it will have its first meeting as soon as possible. This task force will provide leadership to develop a sustainable pathway for the future of the beef sector in terms of economic, environmental and social sustainability. I have appointed Michael Dowling as an independent chairman to lead the task force. Its membership comprises my Department, relevant State agencies and nominees from farm organisations and the meat industry. The task force will provide for a robust implementation structure for commitments entered into in the agreement, with timelines and stakeholder engagement.

The second strand of the agreement 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.

The Government has provided significant financial support to the beef sector over several years. The beef data and genomics programme, BDGP, provides Irish beef farmers with up to €300 million in funding over the current rural development programme. The Department has rolled out a range of other schemes from which beef farmers benefit as part of the €4 billion rural development programme from 2014 to 2020, including the green low-carbon agri-environment scheme, GLAS, areas of natural constraints, ANC, payments and knowledge transfer groups. Suckler farmers also benefit from the basic payment scheme and greening payments under Pillar 1 of the Common Agricultural Policy, CAP. In 2019, a further €20 million was made available through the beef environmental efficiency programme, to encourage farmers to measure the weaning efficiency of their suckler cows.

The beef exceptional aid measure, BEAM, which recently closed for applications, has provided temporary exceptional adjustment aid to farmers in the beef sector in Ireland, subject to conditions set out in the EU Commission implementing regulation EU 2019/1132. The BEAM is funded by a combination of EU aid and Exchequer support and is provided in light of the difficult circumstances Irish beef farmers have been facing as a result of market volatility and uncertainty. Over 34,500 farmers had applied for BEAM by the closing date on 20 September, representing potential commitments of almost €78 million. The Department is examining all appropriate measures to support the different agrifood sectors, including the beef sector, in preparation for the next iteration of the CAP and through the next agrifood strategy to 2030. Such measures should encourage and support beef farmers to make the decisions possible to improve the profitability and the economic and environmental efficiency of their farming system.

Approximately 90% of beef output in Ireland is exported. The development of new market opportunities for such exports is a critical element in our strategy. Developing new markets and expanding existing markets on the basis of market insights is one of the five themes of Food Wise 2025, the ten-year strategy for the Irish agrifood sector. Market development and diversification are also key responses to the challenges which Brexit poses for the agrifood sector, particularly for beef producers and processors. In April 2017, I launched a seven-point action plan on market access. This is being implemented through a variety of actions, including: a market prioritisation exercise and subsequent detailed studies carried out by Bord Bia on behalf of my Department; a market access web portal which was launched in May 2018 and is available on the Department's website; an enhanced programme of Government agrifood trade missions. Beef market access has been a feature of these missions and over the past two and a half years, trade missions have focused on key growth markets such as Asia, the Americas, the Gulf states and Turkey. These missions included participants from across the agrifood sector and featured extensive trade contacts as well as high level political discussions.

Since the Brexit vote in 2016, I have increased the allocation for Bord Bia to enable it to develop new markets and enhance existing ones. The approach of Department and Bord Bia for market development is a combination of targeted research, high-level diplomacy, consultation with important agrifood stakeholders and co-operation with officials in competent authorities abroad. This approach serves to make the most effective use of available resources and to maximise opportunities for market access. Since April 2017, agreement has been secured for the export of beef to several new third country markets, including China, Ukraine, Qatar and Kuwait. Furthermore, during this period enhanced beef access was agreed with Japan, Israel, Singapore, Saudi Arabia and South Africa. It was positive to see another Chinese audit team visiting earlier this month to inspect additional beef plants seeking access to this valuable and growing market.

In addition to third country market access for our beef, live exports are a crucial outlet to improve competition in the sector. I have committed to maintaining a strategic focus on facilitating and developing this trade on a sustainable basis, taking account of stringent animal health and welfare standards. Last year, live exports increased by more than 30% compared to 2017 to 246,000 head. This growth trend has continued in 2019, with live exports totalling 247,000 up to the week commencing 9 September. This is up from 207,000 for the same period in 2018, a 19% increase.

On 11 September, I announced the formal recognition under EU legislation of a beef producer organisation in Ireland. I firmly believe that producer organisations are an important part of the toolkit in building resilience in the sector by rebalancing power along the supply chain. My officials continue to engage with potential groups, as they have done since the inception of the measure in 2016. Nobody should expect that the recognition of such groups will transform the sector overnight or that they can impact global price dynamics. However, if enough farmers join them and if the processing sector embraces them as a positive development, they can help change the relationship between processors and farmers for the better.

There is no silver bullet to solve all the issues facing the beef sector, particularly with the significant threat posed by a no-deal Brexit. However, I am optimistic that the agreement reached last month points the way towards a better way for processors to engage with suppliers. As I have said previously, all actors along the supply chain must recognise their inter-dependency and must work together. I hope the beef market task force will provide leadership in this regard.