Paul Kehoe (Wexford, Fine Gael)
Link to this: Individually | In context

Question 113: To ask the Minister for Agriculture, Fisheries and Food if he will report on the operation of the new quality payment system at meat factories; and if he will make a statement on the matter. [3779/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

As the Deputy is aware, the price paid for beef is a matter for the meat industry and the farmers who supply cattle.

Beef carcasses are classified or graded in accordance with EU Regulations using the EUROP scale for conformation and a scale of 1 to 5 to indicate fat cover. Mechanical grading has facilitated the use of sub-classes within each main class for both conformation and fat cover in order to give a more precise grade for a beef carcass. Studies at Teagasc Grange have shown that the use of sub-classes to determine the price paid per kg of carcass is justified. The use of sub-classes when paying for cattle sends a clear message back to the farmer on the type of carcass required for the market.

The new quality payment system was introduced a number of weeks ago following intensive negotiations between Meat Industry Ireland (MII) and the farmers representatives (IFA). The payment system makes use of sub-classes to determine the price paid, with the aim of rewarding farmers for producing the better quality and higher value carcasses.

Overall, the quality based payment system is a welcome development. It is now up to the industry to continue to operate the system in a fair and transparent manner in order to ensure that the system gains widespread acceptance among the farmers who supply cattle.