Robbie Gallagher (Fianna Fail)
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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?

Andrew Doyle (Wicklow, Fine Gael)
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As an active beef farmer I am very conscious that 2018, in particular, was a difficult year for the beef sector due to unprecedented weather events which resulted in increased input costs owing to fodder shortages. I am deeply committed to fully supporting and developing the beef sector. One of the unique strengths of the agrifood sector has been the shared vision for its sustainable development in Food Wise 2025. It is crucial that we all continue to work together. The Minister for Agriculture, Food and the Marine, Deputy Creed, has utilised the beef round table to highlight the need for stakeholders to recognise their inter-dependency and support the sector through an examination of mechanisms to add value along the supply chain and increase the strength of all links, including beef producer organisations. My Department is engaging extensively with stakeholders in beef producer organisations which have strong potential to strengthen the position of the primary producer in the supply chain. I firmly believe producer organisations have the potential to play a very important role in this area. My Department is continuing in its efforts to drive the potential of the scheme through engagement with an array of stakeholders across fora. It has rolled out a range of schemes as part of the €4 billion Rural Development Programme for the period 2014 to 2020.

The beef data and genomics programme, BDGP, is the main support specifically targeted at the suckler cow sector which will provide beef farmers with €300 million in funding during the current rural development programme period. The scheme is an agri-environmental measure to improve the environmental sustainability of the national suckler cow herd by increasing genetic merit within it. In addition to the BDGP, other supports available to suckler cow and sheep farmers under pillar 2 of the Common Agricultural Policy, CAP, include the green low-carbon agri-environment scheme, GLAS; the areas of natural constraint, ANCs, and knowledge transfer groups. Suckler cow farmers also benefit from the basic payment scheme, BPS, and greening payments under pillar 1.

The national farm survey data suggest suckler cow farmers receive support equivalent to approximately €500 per suckler cow on average. It is also envisaged that suckler cow farmers will be the primary beneficiaries of the €23 million increase in ANC payments, in addition to the €20 million available under the beef environmental efficiency pilot scheme being announced by the Minister, which is why he has had to send his apologies to the House. The scheme is targeted at suckler cow farmers and specifically aimed at further improving the carbon efficiency of beef production. The Department is examining all appropriate measures to support the different sectors, including the suckler cow sector, in preparation for the next iteration of the CAP. We are committed to ensuring suckler cow farmers will continue to receive strong support under the next CAP. Such payments should support and encourage suckler cow farmers to make the best decisions possible to improve the profitability and the economic and environmental efficiency of their farming systems.

The development of markets for Irish beef was a particular priority for many of the trade missions in 2017 and 2018. The opening last year of the Chinese market to Irish beef marked the culmination of significant work over a period of years. The Department continues to prioritise efforts to gain market access to new third country markets and, equally as important, deepen existing markets for Irish beef products. I am deeply committed to ensuring suckler cow farmers will continue to receive strong support under the next CAP. My view is that such payments should support and encourage suckler cow farmers to make the best decisions possible to improve the profitability and environmental efficiency of their farming systems.

Robbie Gallagher (Fianna Fail)
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I raise this matter because of the urgency attached to it. As he is involved in the farming business, the Minister of States fully appreciates the difficulties farmers face. There is a sense of urgency attached to this issue. With other farm bodies, the new beef group has put forward some proposals which are credible and should be explored if the sector is to have a future. I would appreciate it if the Minister of State gave them serious consideration as rural Ireland depends greatly on farmers doing well. If farmers do well, the local economy tends to do well also. Conversely, when that does not happen, we have a serious problem. The cloud of Brexit is hanging over us. It is a worrying and stressful time for farmers, particularly for those in Border areas. I would like to see the Government taking this issue very seriously and bringing forward proposals to help to alleviate the situation in which farmers find themselves.

Andrew Doyle (Wicklow, Fine Gael)
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I thank the Senator and I agree with him. In my opening remarks I made the point that it was important to realise that there is serious interdependency. The beef sector, processors and markets are all very fine but if one does not have a primary producing base whose members feel like they have a viable future, then the whole system will fall asunder.

In terms of all of the suggestions, we need to consider various systems, be they fixed price contracts or fixed agreement contracts with the processors for some or all of the producers in the establishment of producer organisations. In terms of opening the supply chain prices up to scrutiny and explaining why each player along the chain must have so much of a margin, transparency is very important. In other countries, transparency is beginning to be rolled out and have a positive effect.

I urge everyone to participate in the beef forum and round-table group because everything gets solved, if it is going to be solved, in discussion and agreement. I mean an agreement that is honoured and not reneged on, which is very important.