Joe McHugh (Donegal North East, Fine Gael)
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Question 553: To ask the Minister for Agriculture, Fisheries and Food his plans to tackle price reductions for store lambs; his plans to intervene at the factory gate where prices have dropped; and if he will make a statement on the matter. [35928/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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My Department does not have a role in setting prices at meat processing plants. The Sheep Strategy Development Group recommended the introduction of a quality based pricing system and I understand this is currently under discussion between processor and producer representatives. Efforts to increase rewards for better quality animals include trials on mechanical grading which were facilitated by my Department. The results of these trials are being assessed at the moment.

I would hope that a transparent grid for pricing can be agreed between the processors and suppliers in the near future. Such a development would ultimately help suppliers to tailor their supply to the requirements of the marketplace and increase the returns available for better quality product.