Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 463: To ask the Minister for Agriculture and Food the reason first class hereford and other native breeds are downgraded to such an extent on the advice sheet to the appointed buyers of tuberculosis reactor animals; her views on whether the lower prices being advised to the buyers bears no relation to the actual market value of these animals in public auction rings; if the situation will be re-examined and rectified accordingly; and if she will make a statement on the matter. [31898/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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Under the existing arrangements, the main compensation scheme for farmers whose herds are affected by TB or brucellosis is the on-farm market valuation scheme, which provides for compensation to be paid on the basis of market value. Under the scheme, market value is the equivalent price that might reasonably have been obtained for the animal, at the time of determination of compensation, from a purchaser in an open market if the animal was not affected by TB or brucellosis or was not being removed as part of a depopulation under the disease eradication programme. Cattle removed as infected animals are valued by suitably qualified valuers approved by my Department and by reference to Department guidelines on market values of animals. The amount payable is subject to a maximum ceiling of €2,540 applying in respect of any individual animal, except in respect of one pedigree stock bull per breakdown episode where a ceiling of €3,175 is applied.

All reactor animals are valued as if they were not affected by disease and are categorised by breed and quality. Summary market guideline prices are compiled and issued by my Department to independent livestock valuers on a weekly basis for use as a reference for the valuation of animals affected by disease prior to slaughter. These prices are based on current livestock sales which are closely monitored by my Department. Prices for finished cattle are obtained from the meat factories each week. The prices for all other commercial cattle are obtained by my Department from representative livestock marts throughout the country. Prices for breeding animals are obtained from clearance, reduction and specialised sales that are normally held during the breeding season, that is, during spring and autumn. Department staff also monitor the valuations attributed to animals by the valuers.

Farmers receive payment from meat plants for the meat value of reactors. This payment is netted against the on-farm valuation, with the appropriate net differential payment being paid by the Department to the farmer. With regard to prices paid by the meat plants buying tuberculosis reactor animals, my Department operates a weekly tendering system whereby the meat plants submit quotations for the purchase of the reactors. My Department does not advise factories as regards the meat price of reactor animals. The farmer receives the full market valuation of his or her reactors irrespective of the price paid by meat plants.

I am therefore satisfied that the guidelines issued by the Department reflect the appropriate market value for all animals, including first class herefords and other native breeds, and I do not propose to revise the current market valuation arrangements.