Seanad debates
Thursday, 7 December 2023
Nithe i dtosach suíonna - Commencement Matters
Beef Sector
9:30 am
Timmy Dooley (Fianna Fail)
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I welcome the Minister of State to the House to discuss this important issue. She will be aware the agency responsible for the grading of cattle for the various beef schemes has carried out a reclassification in recent weeks. As a result, cows, heifers and bulls that would have been given five-star ratings based on the index have been downgraded. To show the consequences, let me give the example of a farmer in north Clare. Last March, he purchased a Simmental bull with a five-star grading for €4,500. In recent days, he and his family have been told the bull has been reclassified with a three-star rating. The immediate impact is twofold. First, the value of the animal, based on the factory rate to kill it, is about €2,000, so the farmer is down €2,500. He has 40 cows or heifers that would have been put in calf by the bull, but, as a result of its downgrading, there is now a question mark over the grading of the progeny. This means a very significant impact on the livelihood of a very small suckler farmer, who, like many others, is struggling with the cost-of-living crisis and various cost increases and trying to raise a family. I have genuine concerns. While I understand to some extent what the Irish Cattle Breeding Federation is about in its effort to improve the quality of our beef herd, it does not seem logical that, overnight, at the stroke of a pen or with the provision of better statistics or information, there can be such a profound impact on farmers.
The Minister of State knows well from her background and the area she represents that there is a struggle, particularly in the beef sector. The vagaries of the marketplace have always dictated that farmers can never be sure of what they will get for their cattle at the end of the year when they are ready to go to slaughter or to be sold as weanlings. It depends on the prevailing winds of the marketplace. What has occurred seems like a bolt from the blue. While there was some discussion about it, farmers were clearly not expecting this kind of reclassification. If the downgrading were by one star, people would get used to it. Farmers would breed out, sell the cattle for commercial purposes the following year, and then start again with heifers and a bull with higher star ratings.
What role can the Department play in mitigating the impact on certain farmers, particularly those with beef breeds that were promoted as the best? I am aware that the sector is moving towards smaller cattle, including the Angus breed, which will be finished sooner, have smaller carcases, and have good beef conformation.However, the thinking and advice all along the way has been to move farmers on to the bigger breeds of cattle, those with better muscle conformation. Now, having followed that pattern, they find themselves being significantly disenfranchised and at huge personal financial loss.
Pippa Hackett (Green Party)
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I thank the Senator for raising this issue. I am answering this on behalf of the Minister, Deputy McConalogue. The Irish Cattle Breeding Federation, ICBF, is the body approved in Ireland in accordance with the relevant EU legislation to conduct testing, genetic evaluations and publication of breeding values for dairy and beef cattle. As part of its remit, the ICBF recently updated its beef breeding indexes, the first major update since 2015, based predominately on changing economic drivers such as feed costs and beef prices. I am advised that a modest adjustment also took place based on earlier slaughter of animals, tuberculosis resistance, carcass specifications and lower methane output.
I understand the new economic values are more representative of the impact that advances in production traits have on the profitability of Irish suckler beef production systems. The rationale for updating the indexes is that it will assist suckler farmers to breed animals that will generate a higher profit. The changes to the beef indexes were initially due to go live on 21 November but this date was deferred by a week to allow further engagement with farmers and breed societies. I understand there was concern that deferral of the update could have impacted breeding decisions at farm level and the ability of AI companies to respond to any impact of such breeding decisions as a result of the changes.
I am advised that the ICBF has communicated extensively with the industry to explain the changes to the beef indexes. Indeed, the most recent of these engagements was a meeting with the IFA livestock committee yesterday, where the ICBF CEO, Sean Coughlan, committed to convening an industry stakeholder forum to address issues and concerns raised by suckler farmers and pedigree breeders. The Minister and I both welcome this engagement. The ICBF has also met with the breed societies since the changes to the beef indexes were announced, and ongoing communications are anticipated. The Department is confident the amended indexes will contribute to the overall profitability and sustainability of beef production at farm level.
Concerning some impacts of the changes to indexes, prior to the updates, continentals, that is, Charolais, Limousin and Belgian Blue, were the most desirable terminal cattle breeds and they continue to be the most desirable after the changes. On the replacement index, the top three most desirable replacement breeds, Aberdeen Angus, Limousin and Simmental, remain as the top three after the changes. Traditional breeds have improved the most while the Belgian Blues have declined the most. Some animals will change within herds which means all farmers will need to check their herd status. Some 84% of previously rated 4- or 5-star animals will retain their 4- or 5-star status after changes. Of the remaining animals previously rated as 4- or 5-star animals, as many will rise in the index as will fall.
The suckler carbon efficiency programme, SCEP, is an agricultural scheme which aims to provide support to beef farmers to improve the environmental sustainability of the national beef herd. The programme aims to build on the gains delivered in recent years through the beef data and genomics programme and the beef environmental efficiency programme by improving the genetic merit of the Irish suckler herd. The programme requires participants to make use of the Euro Star Index when making breeding decisions. To answer the Senator’s specific question on what the Department is doing to mitigate the impact, from a programme perspective, animals in the SCEP herds whose index falls will not be impacted by the changes until the SCEP participant sells an animal that has gone down in rating. For example, if a cow was 4 star prior to the updates and subsequently dropped to a 3 star, this cow will remain eligible for the 4- and 5-star eligibility criteria once it remains in the herd. It is only when this animal moves out of this herd that its 3-star rating will become applicable and it will no longer meet the 4- and 5-star eligibility criteria.
The Department will continue to monitor the impact of index changes on the suckler carbon efficiency programme.
Timmy Dooley (Fianna Fail)
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I welcome the Minister of State’s outline of the situation and thank her for that. I believe the Department will have to look at the significant support for farmers who have taken a disproportionate hit in terms of loss of value due to the star rating changes. I would ask the Minister of State and the Minister to consider some kind of a programme of compensation that would assist in that. I get that there are some farmers whose position will improve, and best of luck to them, but I am always concerned about the loser here and those who will take a very significant loss in the short term. I welcome the fact that cows that remain in the herd will retain that rating for the benefit and purpose of being able to draw the grants - that is a welcome clarification – but there are those who have cows in calf who will be selling or hoping to sell weanlings at a later stage. They will have had an expectation based on the star rating of being able to achieve a certain price in the marketplace. That will now change. We need to look at that, insofar as we can.
Pippa Hackett (Green Party)
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I accept there are challenges for some farmers with this. There are mitigating pieces in there that may help iron out some of the issues. Ultimately, the purpose of this and the changes in the indexes are, maybe more in the longer term, to support farmers to breed animals that are more productive and that are more profitable. In this day, profitability on farms is probably the most important aspect.
The Department will continue to engage on this with the breed societies and the farm organisation representatives. We will keep it under continuous examination. Ultimately, we are trying to improve our suckler cow herd and the progeny they produce. I can commit that engagement will continue.
Victor Boyhan (Independent)
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I thank the Minister of State for her time. We appreciate it.